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Trans-Afghan Railway cost surges to over $7 billion as regional interest grows

The project includes approximately 760 kilometers of new railway construction inside Afghanistan, between Mazar-e Sharif and Torkham.

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The estimated cost of the proposed Trans-Afghan Railway linking Uzbekistan, Afghanistan and Pakistan has risen to more than $7 billion, according to Uzbek Deputy Minister of Transport Jasurbek Choriyev.

Speaking at the Tashkent International Investment Forum on June 18, Choriyev said the updated figure reflects ongoing technical assessments and the evolving scope of the project. Earlier estimates had placed the cost at around $4.8 billion.

He noted that a detailed feasibility study for the strategic railway is currently underway and is expected to be completed by the end of 2026.

Strategic regional corridor

The Trans-Afghan Railway is planned to establish a direct rail link from Termez in Uzbekistan through Mazar-e Sharif, Logar, Kharlachi and Torkham in Afghanistan, before continuing into Pakistan and connecting with major ports including Karachi.

The project includes approximately 760 kilometers of new railway construction inside Afghanistan, between Mazar-e Sharif and Torkham.

According to officials, the railway is expected to significantly reduce transport time between Central Asia and Pakistan—from around 35 days to as little as three to five days—while also lowering logistics costs.

Trade and cargo capacity

Choriyev said the railway could handle up to 20 million tons of cargo annually, doubling earlier estimates of 10 million tons.

He added that the corridor would provide Central Asian countries with faster access to global maritime trade routes and strengthen economic links between South Asia, Central Asia and CIS states, where combined trade exceeds $700 billion.

Officials also estimate that container transport costs along the route could be reduced by nearly three times compared to existing logistics pathways.

Financing and international interest

The deputy minister confirmed that several countries, including the United Arab Emirates and Qatar, have expressed interest in participating in the project. The Eurasian Development Bank has also indicated readiness to support financing.

Uzbek officials have been promoting the railway as a long-term strategic infrastructure project aimed at boosting regional connectivity and trade integration. While feasibility work continues through 2026, final investment and construction decisions are expected to follow upon completion of the study.

The project is widely seen as a key component of efforts to transform Afghanistan into a transit hub linking Central and South Asia.

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Afghanistan transit trade through Pakistan hits historic low

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Torkham

Afghanistan’s transit trade through Pakistan has dropped to its lowest level in years, according to Pakistan’s Dawn newspaper.

The report says transit cargo declined from nearly 89,000 containers worth $5 billion before the Islamic Emirate returned to power to just 11,592 containers valued at $367 million in the last fiscal year.

According to Dawn, while Pakistan’s closure of Durand Line crossings with Afghanistan in October 2025 over security concerns accelerated the decline, the downward trend had already begun earlier.

Trade analysts told the newspaper that Afghanistan had already been working to reduce its reliance on Pakistani ports by expanding trade through Iran and strengthening commercial links with Central Asian countries.

The report says transit cargo through Pakistan initially rose after the Islamic Emirate’s return to power, peaking at more than 102,000 containers in fiscal year 2023, before steadily declining in subsequent years.

Dawn also reported that reverse transit, which allowed Afghan exports to reach third countries—particularly India—through Pakistan, has nearly come to a halt, falling from $454 million in fiscal year 2025 to just $7 million in fiscal year 2026.

Citing the World Bank, the newspaper said Iran has become Afghanistan’s largest source of imports, with Iranian direct and transit routes now accounting for nearly half of the country’s total imports.

However, the World Bank says the shift to alternative routes has increased import costs, reduced export revenues, and added inflationary pressure, while the decline in cross-Durand Line trade has also affected thousands of jobs linked to transport, customs, warehousing, and other businesses.

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Afghanistan, India discuss ways to boost trade and investment ties

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Sayed Karim Hashemi, chairman of the Afghanistan Chamber of Commerce and Investment (ACCI), has met with Indian ambassador in Kabul, Yatin Patel, to discuss ways to strengthen bilateral trade and investment cooperation.

According to ACCI, the meeting focused on expanding exports, improving trade facilitation, easing business visa procedures, enhancing logistics, and increasing cooperation in key sectors including agriculture, mining, and handicrafts.

The two sides also agreed to promote joint exhibitions, organize business delegations, and develop long-term partnerships between the private sectors of Afghanistan and India.

The meeting comes as Afghan and Indian officials and business leaders continue efforts to expand economic relations and create new opportunities for trade and investment between the two countries.

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Afghanistan temporarily eases fuel import standards to help curb rising prices

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Afghanistan’s state-owned Oil and Gas Company has announced a temporary adjustment to some technical standards for importing gasoline, diesel and liquefied petroleum gas (LPG) following a sharp rise in global oil and gas prices and their impact on the domestic market.

In a statement, the company said the committee responsible for preventing the import of substandard fuel had reviewed market conditions and domestic demand before deciding to temporarily apply revised limits to certain technical specifications and permissible standards for imported fuel under specific conditions.

The company said the move is an exceptional and temporary measure aimed at facilitating fuel imports, ensuring timely market supply, preventing shortages and reducing the impact of global price volatility. The revised standards will remain in effect until market conditions stabilize and relevant authorities issue further instructions.

The decision comes as fuel prices have risen sharply across Afghanistan in recent days, prompting widespread public concern and complaints.

The increase has been linked to a significant decline in Afghanistan’s fuel imports from Russia following recent Ukrainian attacks on Russian oil facilities, which have disrupted supplies.

 
 
 
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