Business
US sets up fund that could transfer frozen assets to Afghanistan
Washington is to set up a new fund that could eventually serve as a mechanism to free up Afghanistan’s frozen assets in order to promote economic stability in the country, senior US officials told CNN.
According to the officials, the Biden administration has worked with Switzerland and Afghan economists to set up this fund.
The US is moving $3.5 billion to the new “Afghan Fund,” but officials said they won’t release the money imminently because there is no trusted institution in Afghanistan to guarantee the funds will benefit the Afghan people, CNN reported.
Afghanistan’s central bank, Da Afghanistan Bank, issued a statement on Wednesday stating that it “deems any decision on allocation, using and transferring of the assets for irrelevant purposes unacceptable and wants it to be reconsidered.”
The statement notes that the assets are for the stability of currency, strengthening of the financial system and facilitating trade.
According to Turkey’s TRT news outlets, the funds will be transferred to the Bank of International Settlements in Basel, Switzerland, and the U.S. will set up a trusteeship to oversee the disbursement of the money for the purposes of both monetary policy and humanitarian aid.
“The [Da Afghanistan Bank] funds belong to DAB and should be returned to Afghanistan,” said Suhail Shaheen, a spokesperson for the IEA who serves as head of the political office.
“In this critical time when 99% of Afghans are living under the poverty line, it is direly needed that the reserve[s] return to the country.”
However, a US official told CNN that transferring these funds to the Afghan central bank will depend on two key factors: responsible management of the bank and assurances that the funds will not be diverted to terrorists or criminals.
“We do not have that confidence today,” said a senior US official. At minimum the Afghan central bank will need to “demonstrate its independence from political influence and interference.”
The officials also said DAB will also need to demonstrate it has “instituted adequate anti-money laundering and countering the financing of terrorism controls” and “complete a third party needs assessment and onboard a reputable third party monitoring,” the official explained.
CNN reported that it reviewed a letter sent to DAB this week from the US deputy secretary of the Treasury, which mapped out steps DAB needed to take. The letter cites the need for DAB to demonstrate independence from IEA influence and interference, among other expectations, CNN reported.
Earlier this year President Joe Biden signed an executive order allowing for the $7 billion in frozen assets from Afghanistan’s central bank to eventually be distributed inside the country and to potentially fund litigation brought by families of victims of the September 11, 2001, terror attacks.
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.
Business
Kyrgyzstan doubles gasoline exports, majority sent to Afghanistan
The surge underscores growing fuel demand across the border, despite restrictions linked to Kyrgyzstan’s preferential fuel import agreement with Russia.
Kyrgyzstan has sharply increased its gasoline exports this year, with Afghanistan emerging as the main destination, according to data from the Kyrgyz National Statistical Committee.
Between January and August 2025, Kyrgyzstan exported 65.5 million liters of motor gasoline valued at 2.6 billion Kyrgyz soms (about $30 million) — nearly double the 35.3 million liters worth 1.4 billion KGS recorded during the same period last year.
Of this total, 59.3 million liters worth 2.36 billion KGS were supplied to Afghanistan, compared to 30.2 million liters worth 1.18 billion KGS in 2024. The surge underscores growing fuel demand across the border, despite restrictions linked to Kyrgyzstan’s preferential fuel import agreement with Russia.
New Export Destinations Emerge
For the first time, Tajikistan and Uzbekistan appeared as export markets in 2025. Kyrgyzstan shipped 1.27 million liters of gasoline worth 48.7 million KGS to Tajikistan — a trade route that did not exist last year. Exports to Uzbekistan, however, dipped slightly to 4.96 million liters, down from 5.07 million liters in 2024, with little change in total value.
Business
IEA urges Afghan traders to cut reliance on Pakistan, citing repeated crossing closures
The decision comes amid escalating trade tensions between Kabul and Islamabad and the recurring shutdown of key crossings by Pakistan.
The Islamic Emirate of Afghanistan (IEA) has urged Afghan traders to reduce their dependence on Pakistan for trade and transit, citing repeated crossing closures and Islamabad’s use of “non-political issues as political tools.”
Addressing a press conference on Wednesday, Mullah Abdul Ghani Baradar, Deputy Prime Minister for Economic Affairs, said that Pakistan has repeatedly obstructed Afghanistan’s trade routes, causing significant economic disruptions.
“In order to safeguard national dignity, economic interests, and the rights of our citizens, Afghan traders should minimize their trade with Pakistan and seek alternative transit routes,” Baradar said.
He emphasized that imports from Pakistan should be redirected to other markets and countries, noting that “many viable alternatives are now available.”
Baradar also instructed that all pharmaceutical imports should come from other countries and called on Afghan businessmen to close their financial accounts and end business dealings with Pakistan.
During the same press conference, Minister of Industry and Commerce Nooruddin Azizi revealed that the month-long closure of the Torkham crossing had cost Afghan traders approximately $200 million in losses.
The decision comes amid escalating trade tensions between Kabul and Islamabad and the recurring shutdown of key crossings by Pakistan, which Afghan officials say has been used as leverage in political disputes.
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