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Russian firms show interest in Panjshir-to-Kabul water transfer project

During the meeting, the Russian side reportedly conveyed readiness to engage not only in the water transfer project but also in a broader range of infrastructure and energy development ventures across Afghanistan.

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Several Russian companies have expressed strong interest in participating in Afghanistan’s ambitious Panjshir-to-Kabul water transfer project, a major infrastructure initiative aimed at addressing the capital’s worsening water shortage, the Ministry of Water and Energy announced.

According to the ministry, a delegation of Russian business representatives — accompanied by an official from the Russian Embassy in Kabul — met with Deputy Minister for Energy Abdul Hadi Yaqub to explore potential investment opportunities.

During the meeting, the Russian side reportedly conveyed readiness to engage not only in the water transfer project but also in a broader range of infrastructure and energy development ventures across Afghanistan.

Yaqub welcomed the proposal, saying the ministry is open to partnerships that support the country’s long-term development goals.

“The Ministry of Water and Energy welcomes all constructive cooperation in the fields of water management, power generation, and infrastructure,” Yaqub said. “The Islamic Emirate supports initiatives that contribute to Afghanistan’s sustainable growth and the well-being of its people.”

A strategic infrastructure priority

The Panjshir-to-Kabul water transfer project is among Afghanistan’s most significant planned infrastructure undertakings. The project aims to channel water from the Panjshir River to Kabul, where rapid population growth has placed severe strain on existing water resources.

Experts say that, if completed, the project could provide a critical lifeline for the capital, ensuring a more stable water supply for households, agriculture, and industry. It could also serve as a model for future large-scale hydrological and energy projects in the country.

The initiative aligns with the Islamic Emirate’s broader strategy to attract foreign investment and technical expertise, particularly from countries with a history of engagement in Afghanistan’s development.

Strengthening Afghan–Russian ties

Russia has in recent months increased its diplomatic and economic engagement with Afghanistan, signaling interest in sectors such as energy, mining, and infrastructure. Several Russian companies have previously explored opportunities in Afghanistan’s power generation and oil industries, and Moscow has hosted multiple meetings with Afghan officials to discuss cooperation.

Analysts view the latest discussions as part of a gradual deepening of economic ties between the two countries, amid Afghanistan’s ongoing efforts to rebuild its economy and reduce dependency on Western aid.

“Russia sees Afghanistan as a potential partner for regional energy connectivity and resource development,” said a Kabul-based economic analyst. “Projects like the Panjshir–Kabul water transfer could become a stepping stone for broader collaboration.”

Looking ahead

While no formal agreements have yet been signed, the ministry described the discussions with Russian companies as positive and forward-looking. Officials say technical assessments and feasibility studies will be required before construction can begin.

If realized, the project would mark one of the first major foreign-backed infrastructure initiatives under the current government — signaling renewed international confidence in Afghanistan’s stability and investment potential.

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‘Made in Afghanistan’ expo opens in Tashkent

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The Afghanistan Chamber of Commerce and Investment has announced that a major exhibition of Afghan products titled “Made in Afghanistan” is opening today (Wednesday) in Uzbekistan’s capital Tashkent.

According to the chamber, the expo—supported financially by the United Nations Development Programme—will run until Friday and aims to showcase Afghanistan’s production and export potential.

More than 60 booths have been set up by Afghan traders, featuring a wide range of products including carpets, dried and fresh fruits, saffron, pine nuts, cotton, precious and semi-precious stones, as well as beverages.

Officials from the chamber expressed hope that the expo will help expand trade relations between Afghanistan and countries in the region, particularly Uzbekistan.

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Afghani strengthens nearly 10% against US dollar amid banking sector reforms

The bank said it has expanded oversight of financial institutions and private lenders, improving transparency and promoting more consistent standards across the sector.

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Afghanistan’s central bank, Da Afghanistan Bank, says the national currency has appreciated by 9.93% against the US dollar during the year 1404, citing steady progress in the country’s financial and banking systems.

Officials attributed the gains to cautious monetary policies that have helped stabilise the Afghani against major global currencies while also boosting its value against the dollar.

The bank said it has expanded oversight of financial institutions and private lenders, improving transparency and promoting more consistent standards across the sector.

As part of efforts to better manage liquidity, authorities also collected and destroyed worn-out banknotes in circulation. At the same time, officials reported growth in electronic banking, with digital payment usage rising in recent months.

Central bank spokesperson Haseebullah Noori said initiatives are underway to broaden access to banking services nationwide, including the wider rollout of Islamic banking options.

Analysts welcomed the stabilisation efforts but stressed the need to address ongoing challenges facing domestic banks, including the impact of international financial sanctions on Afghanistan.

They added that expanding Islamic banking could help draw more savings into the formal financial system, noting that a significant share of personal wealth remains outside banks. Bringing those funds into the sector, they said, could inject billions of Afghanis into the economy and further support financial stability.

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Uzbekistan delivers over 290 tons of aid to Afghanistan

The assistance, provided ahead of Eid al-Fitr, is intended to support vulnerable communities while reinforcing ties between the neighboring countries.

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Uzbekistan has delivered more than 290 tons of humanitarian aid to Afghanistan, according to the country’s Ministry of Foreign Affairs.

The assistance, provided ahead of Eid al-Fitr, is intended to support vulnerable communities while reinforcing ties between the neighboring countries.

The shipment includes essential food supplies such as flour, rice, wheat, vegetable oil, instant meals, pasta, and confectionery. An official handover ceremony was held in the border town of Hairatan.

Local officials, including Balkh province representatives and authorities from Hairatan, expressed appreciation for the continued support, acknowledging Uzbekistan’s efforts to assist the Afghan people.

Among those present at the ceremony were Uzbekistan’s Ambassador to Afghanistan, Oybek Usmanov, and Surkhandarya regional governor Ulugbek Kosimov.

The aid delivery underscores Uzbekistan’s ongoing humanitarian engagement and its broader efforts to promote regional cooperation and stability.

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