Business
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.
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.
Business
Ariana Airlines’ new cargo tariffs open fresh gateway for Afghan exports
Under the new policy, Ariana will transport export goods at a fixed rate of $1 per kilogram, while the rate for imported goods is set at $0.80 per kilogram.
Ariana Afghan Airlines has officially implemented a new set of reduced cargo tariffs, a move expected to stimulate Afghanistan’s trade sector at a critical moment for the country’s exporters.
The changes, introduced on Sunday under a directive from the Economic Deputy of the Prime Minister’s Office, apply to both export and import air freight.
Bakhturrahman Sharafat, President of Ariana Afghan Airlines, said the revised pricing structure will make it significantly easier and more affordable for Afghan traders to ship their products abroad. Key export items — including fresh and dried fruits, saffron, carpets, gemstones and other high-value goods — are expected to benefit from faster processing and reduced transportation costs.
Under the new policy, Ariana will transport export goods at a fixed rate of $1 per kilogram, while the rate for imported goods is set at $0.80 per kilogram. Sharafat said the simplified and lowered tariffs would “strengthen Afghanistan’s economy and expand opportunities for Afghan producers in competitive global markets.”
The announcement comes at a time when Afghan exporters continue to face challenges stemming from regional transit restrictions, fluctuating overland shipping costs and limited access to international banking services. Air freight has increasingly become a vital alternative for perishable goods and high-value products, allowing traders to maintain quality and meet market deadlines.
By cutting air cargo rates, Ariana Afghan Airlines aims to reduce logistical pressures on Afghan businesses and improve the reliability of export channels. Trade experts say the measure could help Afghanistan regain market share in key destinations such as India, the Gulf states and parts of Europe, where demand for Afghan agricultural products and textiles remains strong.
The reduced tariffs also underscore Ariana’s broader role in supporting national economic objectives. As one of the few carriers with the capacity to connect Afghanistan to regional hubs, the airline’s pricing reforms position it as a central player in the country’s push to expand export volumes and attract new trading partners.
For Afghan traders, the new rates represent not just a financial relief but a potential turning point — opening a more stable and accessible gateway to international markets at a time when the country’s economic recovery depends heavily on revitalized exports.
Business
Afghanistan shifts trade to Iran route to avoid Pakistan closures
Landlocked Afghanistan is leaning more heavily on trade routes through Iran and Central Asia to reduce dependence on Pakistan, officials said, as tension between the neighbours escalates, with the Durand Line crossings closed in recent weeks, Reuters reported.
“In the past six months, our trade with Iran has reached $1.6 billion, higher than the $1.1 billion exchanged with Pakistan,” Abdul Salam Jawad Akhundzada, a spokesman for the commerce ministry, told Reuters.
“The facilities at Chabahar have reduced delays and given traders confidence that shipments will not stop when borders close.”
Traders have three months to settle contracts in Pakistan and shift to other routes, said Mullah Abdul Ghani Baradar, Afghanistan’s deputy prime minister for economic affairs.
Accusing Islamabad of using “commercial and humanitarian matters as political leverage”, he said Afghanistan would not mediate disputes after the deadline and ordered ministries to stop clearing Pakistani medicines, citing “low-quality” imports.
The biggest shift is to Chabahar, used since 2017 under a transit pact with Iran and India. Afghan officials say incentives from tariff cuts and discounted storage to faster handling are drawing more cargo south.
Iran has installed updated equipment and X-ray scanners, while offering Afghan cargo a 30% cut in port tariffs, 75% off storage fees and 55% off docking charges, said Akhundzada, the commerce ministry spokesman.
Business
Pakistan will lose big market in both Afghanistan, Central Asia: Sarhadi
Reacting to the Afghan authorities’ call for exploring new trade avenues, Ziaul Haq Sarhadi, senior vice-president of Pak-Afghan Joint Chamber of Commerce and Industry, has expressed concern that Pakistan would lose a big market in both Afghanistan and Central Asian States, with whom Pakistan just recently signed trade agreements worth millions of dollars.
He noted that Afghanistan had the option to sign business deals with almost all Central Asian States along with Iran and Turkiye on easier terms than Pakistan’s, Dawn newspaper reported.
Before Durand Line crossings closure last month, Pakistan was exporting fresh fruits, cement, medicines, fabrics, agricultural tools, shoes, and other products worth $100–200 million per month to Afghanistan.
Zahidullah Shinwari, a former president of Sarhad Chamber of Commerce and Industry, said that besides losing the Afghan and Central Asian States markets, the suspension of trade with Afghanistan would also seriously affect the tax collection of Federal Bureau of Revenue, which was collecting millions of rupees on a daily basis from both exports and imports at all border points.
He said that industry in KP would be particularly hit hard by the trade suspension with Afghanistan as the KP industry was heavily reliant on its products to Afghanistan, while they couldn’t compete with industry in Punjab and Sindh due to several reasons.
“Much of our big industry, especially cement factories, are run by coal imported from Afghanistan, so suspension of coal import from Afghanistan will adversely affect the production capacity of our big industries,” he said.
He warned if the trade with Afghanistan ended permanently, it would result in the closure of a majority of industrial units in KP with hundreds of industrial labour becoming jobless, while the owners would go bankrupt.
Trade between Afghanistan and Pakistan came to a standstill over a month ago after Pakistani airstrikes on Afghanistan and clashes between the two countries.
Recently, Mullah Abdul Ghani Baradar, Deputy Prime Minister for Economic Affairs, urged traders to look for new trade avenues, as Pakistan has always created hurdles.
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