Business
Turkish firm ‘moves forward’ with plans to invest in Afghan energy producing sector
The Islamic Emirate’s minister of energy and water met on Sunday with the head of a Turkish construction company in Kabul to discuss investment in the energy production sector.
According to the ministry of energy and water, the company, 77 Insaat, expressed interest in investing in power-producing projects including a wind-generating endeavor that could produce 200 megawatts of electricity in Afghanistan.
The ministry said in a series of tweets that the IEA’s energy and water minister Abdul Latif Mansoor met with Suleyman Ciliv, the head of the company, “and discussed and exchanged ideas about the development of joint cooperation of investment in the energy production projects from different sources.”
At the meeting, Mansoor praised the initiative being taken by the company in Afghanistan and said the implementation of the second phase of the Kajaki Dam project by the company was a valuable achievement for the people of Afghanistan.
Mansoor emphasized the need for investment in energy projects and assured Ciliv that the leadership of the energy and water ministry is committed to cooperating with the company.
“Both parties agreed to sign a cooperation agreement to invest in a 200 megawatts wind power generation project as soon as possible, so that on the basis of this agreement, the practical works of this project will start in the future,” the ministry said.
Energy in Afghanistan is provided by hydropower followed by fossil fuel and solar power but currently more than 50% of electricity is imported from neighboring countries.
Many rural areas do not have access to power, while urban areas are often hampered by severe restrictions.
Afghanistan currently generates over 600 megawatts (MW) of electricity but its imports total over 670 MW more.
The Afghan National Development Strategy has identified alternative energy, such as wind and solar energy, as a high value power source to develop.
Last year the ministry of energy and water identified 16 electricity-generating projects that, once established, will increase power output and help make the country less reliant on its neighbors for this critical commodity.
The ministry said at the time that of these 16, there are 12 thermal and solar power projects that have been identified and proposals have been shared with domestic and foreign investors in the hope of attracting financial backing.
Economists have meanwhile said that if investors can be found to support this sector, and if more electricity is generated, industry will grow.
Power projects ‘prioritized’
In April last year, the IEA’s Economic Commission, chaired by Deputy Prime Minister Mullah Abdul Ghani Baradar, gave orders for various ministries to prioritize projects to generate electricity.
At the time, the commission said after “extensive discussions on all issues that the private sector is prepared to invest in”, it was decided that the generation of electricity should be a priority.
According to the statement, the commission instructed various ministries under the leadership of the ministry of energy and water, to also generate electricity from coal.
A shortage of power has plagued Afghanistan for decades despite it having ample hydropower, coal and fossil fuel resources – as well as potential for solar and wind energy projects.
Over the past few years however, one successful private partnership has emerged – between the Afghan government and Bayat Power, Afghanistan’s largest, Afghan-owned and operated power production company which has the region’s most technologically advanced gas fired electric power plant.
Launched in 2019, this commercial operation provides reliable and affordable electric power to hundreds of thousands of people in Afghanistan.
Located in Sherberghan, in the north of the country, the epicenter of the nation’s gas-rich region, Bayat Power has steadfastly aimed to provide essential power for Afghanistan’s economic growth.
Powered by a Siemens SGT-A45 ‘Fast Power’ turbine, the world’s most advanced mobile gas to energy power solution, phase one of Bayat Power-1’s operations generates up to 44 megawatts of power for Afghan homes and businesses.
To date, Bayat Power has delivered over 700 million kilowatts of domestic power to the Afghan grid. However, Bayat Power hopes to eventually roll out three phases in total that will generate more than 200 megawatts of electricity – enough to serve millions of Afghan residential and commercial clients.
Business
Major power projects launched in Herat
Baradar urged contracting companies and technical teams to complete the projects with high quality and within the specified timeframe.
Mullah Abdul Ghani Baradar, Deputy Prime Minister for Economic Affairs, on Thursday announced the launch of four major electricity projects and the inauguration of five others in Herat province, with a total investment valued at 3.98 billion afghanis.
Speaking at an official ceremony, Baradar described the projects as vital for Afghanistan’s industrial and economic development. He said that once completed, the projects will provide 24/7 electricity to all industrial parks in Herat, as well as to commercial centers, rural areas, and residential neighborhoods, ensuring stable and reliable power supply.
Baradar also pledged incentives for investors in cold storage facilities, announcing a five-year tax exemption and guaranteeing uninterrupted electricity supply by Afghanistan’s power utility. He encouraged both domestic and foreign investors to take advantage of these opportunities.
Emphasizing the Islamic Emirate’s balanced foreign policy, Baradar said the government’s main focus remains economic growth, security stability, and good governance, urging the international community to pursue engagement with Afghanistan instead of restrictive policies.
Among the projects inaugurated is a 130-kilometer-long 220-kilovolt power transmission line from Turkmenistan, along with the construction of four substations in the districts of Karukh, Pashtun Zarghun, Obey, and Chesht-e-Sharif, which will supply electricity to around 40,000 households.
Newly launched projects include the construction of the Pul-e-Hashemi substation, expansion of the 24 Hoot Martyrs substation, creation of a second line at the Noor-ul-Jihad substation, and the extension of power transmission lines linking the Pul-e-Hashemi, Noor-ul-Jihad, and 24 Hoot Martyrs substations.
Baradar urged contracting companies and technical teams to complete the projects with high quality and within the specified timeframe.
Business
Sharp drop in exports to Afghanistan drives Pakistan’s trade deficit surge
Meanwhile, Afghanistan is actively seeking alternative trade routes and partnerships to reduce future reliance on Pakistan’s commercial channels and strengthen its economic independence.
Recent data from Pakistan’s central bank reveals that a sharp decline in exports to Afghanistan has become a key factor behind the country’s growing trade deficit, challenging previous claims by Pakistani officials that halting trade with Afghanistan would not harm their economy.
According to the State Bank of Pakistan, the trade deficit with nine neighboring countries increased by more than 39 percent in the first five months of the 2025–2026 fiscal year, rising from $4.4 billion to $6.2 billion. The report highlights that reduced exports to countries such as China and Afghanistan played a central role in this increase.
Exports from Pakistan to Afghanistan fell dramatically by over 94 percent during this period, dropping from $408 million last year to approximately $210 million. Economic analysts note that Afghanistan has historically been one of Pakistan’s key export markets, particularly for food items, cement, medicine, and daily-use goods—products that cannot be easily replaced.
The steep decline follows the complete suspension of trade between the two countries in October 2025. Despite previous statements by Pakistani officials asserting that reduced or halted trade with Afghanistan would not negatively impact Pakistan’s economy, the latest figures suggest otherwise.
Meanwhile, Afghanistan is actively seeking alternative trade routes and partnerships to reduce future reliance on Pakistan’s commercial channels and strengthen its economic independence.
Business
Afghanistan’s first aluminum can factory launched in Herat with $120 million investment
Mullah Abdul Ghani Baradar, Deputy Prime Minister for Economic Affairs, laid the foundation stone of the “Pamir” aluminum can production company at the industrial parks of Herat on Thursday.
Afghanistan’s first aluminum can manufacturing plant was officially launched on Thursday in Herat province, marking a significant step toward industrial development and economic self-reliance.
Mullah Abdul Ghani Baradar, Deputy Prime Minister for Economic Affairs, laid the foundation stone of the “Pamir” aluminum can production company at the industrial parks of Herat on Thursday.
According to officials, the Pamir factory is the first of its kind in Afghanistan and is being established with an investment of $120 million. The project will be built on 16 jeribs of land within Herat’s industrial zones.
Once completed, the factory is expected to create employment opportunities for around 1,700 Afghan citizens. Officials say the project will play a key role in boosting domestic production, reducing reliance on imports, and strengthening the national economy.
Authorities described the launch of the project as a clear sign of growing investment in the industrial sector and ongoing efforts to promote economic self-sufficiency in the country.
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