Business
Two new gas wells to be drilled in northern Afghanistan this year
The Ministry of Mines and Petroleum spokesman said on Tuesday that two new gas wells will be drilled in northern Jawzjan province this year and gas processing units will be installed alongside the wells in order to purify the gas on site.
The ministry’s spokesman Hamayoun Afghan said a gas pipeline of over 90 kms long, between Jawzjan and Balkh, will be completed and put into operation this year. “This year, we will try to complete the gas pipeline between Jawzjan and Balkh, and we will continue to dig new wells in the Yatem Taq area, and we will try to increase our production in order to increase our revenue,” he said.
He said currently 600 thousand cubic meters of gas is extracted and processed in Jawzjan province daily, but plans are in place to increase this to two million cubic meters per day.
“We are trying to buy new equipment to have a processing capacity of 2.5 million cubic meters of gas per day, and we are fully prepared to launch this project,” Afghan said.
The ministry did not however give any indication of whether agreements had been signed with private investors to extract the gas.
Khan Jan Alkozai, a member of the Afghanistan Chamber of Commerce and Investment (ACCI) said the country will benefit enormously if more investment is made in this sector.
“I think that there is a high capacity in the area of energy production from gas, and in the area of attracting investment in this area, the facilities should be provided,” said Alkozai.
Currently, there are gas fields in nine areas of Jawzjan province, including in Yatem Taq, Jarqaduk, Jangal Kalan, Khowaja Bolan and other areas.
Energy production is a priority for the Islamic Emirate as the government relies on neighboring countries to supply it with over 50% of its current electricity needs.
In addition to coal-fired energy production plants, the IEA is also encouraging investment in gas to electricity plants. This process in the country is not new, as one trailblazer has been successfully supplying electricity to hundreds of thousands of people for the past few years.
The company is Bayat Power, Afghanistan’s largest, Afghan-owned and operated power production company and it 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 the country.
Located in Sheberghan, in gas-rich Jawzjan province, 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
Russia almost doubles LPG exports to Central Asia, Afghanistan this year
Russia has almost doubled exports of liquefied petroleum gas in the January – November period to ex-Soviet republics in Central Asia and Afghanistan to 1.016 million metric tons, Reuters reported citing sources on Friday.
Moscow has had to divert supplies of LPG, or propane and butane, from Europe, which introduced restrictions on LPG imports from Russia in December 2024 over the war in Ukraine.
Traders said supplies to Afghanistan, as well as to Kazakhstan, Kyrgyzstan, Tajikistan and Uzbekistan now account for around 36% of Russia’s total LPG exports, up from 19% in 2024.
Afghanistan is Russia’s largest buyer of LPG in that region. In July, Russia accepted the credentials of a new ambassador of Afghanistan, making it the first nation to recognise the country’s Islamic Emirate government.
According to the sources, supplies of Russia’s LPG to the country, including from Kazrosgaz, a joint venture with Kazakhstan, have jumped 1.5 times in the first 11 months of the year to 418,000 tons.
Traders said that Russia’s LPG supplies to Afghanistan have increased partially at the expense of declining supplies from Iran, which has been sanctioned by the United States.
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.
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