Business
Uzbekistan denies reports of lowered electricity export rates to Afghanistan
The National Electric Networks of Uzbekistan says no plans have been made to amend the tariffs of electricity exported to Afghanistan
Uzbekistan’s electricity supply company has said there has been no changes to tariffs for electricity exports to Afghanistan.
According to a statement issued by the National Electric Networks of Uzbekistan, no plans have been made to amend the tariffs although an agreement was reached to expand the project to build the Surkhon-Pul-e-Khumri 220-500 kV power transmission line by constructing additional substations and networks.
Last months, “a delegation headed by the acting Deputy Prime Minister of Afghanistan, Mullah Abdul Ghani Baradar, visited our country.
“During the bilateral meetings, issues of further expansion of mutually beneficial relations, consistent development of cooperation in trade, economic, energy, transport and other spheres were discussed in detail,” the statement read.
“As a result of the project optimization and the increase in the share of localized materials in construction, a preliminary agreement was reached to reduce the construction cost from 252 million to 222 million US dollars.
“The contract is currently in the process of being agreed upon and will be signed after the negotiations are completed.
“At the same time, no official changes were made to the tariffs for electricity supplies to Afghanistan,” the statement read.
In December last year Uzbekistan extended its agreement to export electricity to Afghanistan for 2025.
After talks in Afghanistan, Uzbekistan’s energy company Uzenergosotish and Afghanistan’s DABS signed a power purchase agreement for electricity supplies this year.
The sides also conducted “comprehensive and detailed” technical discussions regarding the construction of the Surkhan to Pul-e-Khumri to Kabul power line.
Once operational, the project is expected to supply Afghanistan with 24 million kWh of electricity daily, amounting to 6 billion kWh annually.
The transmission line will span 245.6 kilometers, with 45 kilometers on Uzbekistan’s side and 200.6 kilometers within Afghanistan.
Currently, Afghanistan produces only 20% of its electricity domestically, importing the remaining 80% from Uzbekistan, Tajikistan, Turkmenistan and Iran.
Agreements with Tajikistan and Turkmenistan were renewed in late November and early December, respectively.
In September 2019, Uzbekistan’s National Electric Networks signed a 10-year contract with DABS for electricity exports. At the time, deputy energy minister Sherzod Khodjaev stated that initial supplies would amount to 4.2 billion kWh annually, with plans to increase the volume to 6 billion kWh over time.
Uzbekistan has been supplying electricity to Afghanistan since 2002. Over the years, the volume of supplies has grown significantly, from 62 million kWh in the initial years to 2.6 billion kWh by the end of 2019.
In 2023, Uzbekistan exported 1.82 billion kWh of electricity to Afghanistan, valued at $91.18 million (approximately 5 cents per kWh).
Business
Russia eyes trans-Afghan railway to expand regional trade corridors
Uzbekistan, which already has a direct rail connection with Afghanistan, has positioned itself as a regional logistics hub linking Russia, Central Asia and South Asia.
Russia has expressed strong interest in constructing a railway through Afghanistan as part of broader efforts to strengthen transport and trade links with countries in the Global South, Russian Deputy Prime Minister Alexei Overchuk said.
Speaking to Russia 24 television, Overchuk noted that expanding connectivity with southern markets would help diversify Russia’s transport and logistics routes. He said various options for building a railway across Afghan territory are currently under discussion, with a focus on both western and eastern corridors.
Overchuk added that Russian specialists are actively studying the feasibility of the project and are involved in technical consultations related to the proposed railway.
His remarks follow earlier statements by Russian Industry and Trade Minister Denis Manturov, who said last year that Russia and Uzbekistan were jointly preparing a feasibility study for the Trans-Afghan railway, aimed at developing international transport corridors.
Subsequently, the transport ministers of Russia and Uzbekistan signed agreements to move into the development phase of the Trans-Afghan railway project, which is expected to extend southward to Pakistan.
Uzbekistan, which already has a direct rail connection with Afghanistan, has positioned itself as a regional logistics hub linking Russia, Central Asia and South Asia.
In November 2024, during a visit to Kabul, Overchuk told officials of the Islamic Emirate that Moscow was keen to participate in the Trans-Afghan railway project, describing it as a key initiative to enhance connectivity across Central Asia and the broader Eurasian region.
Business
Pakistan’s kinno exports falter as tensions with Afghanistan continue
Pakistan’s kinno exports remain far below potential as regional tensions, high freight costs and weak government support continue to choke the citrus trade.
Despite being a leading global citrus producer, Pakistan is expected to export just 400,000–450,000 tonnes of kinno in the 2025–26 season, compared with an estimated capacity of 700,000–800,000 tonnes.
Exports in 2024–25 stood at around 350,000–400,000 tonnes, mainly to Russia, the UAE, Saudi Arabia, Afghanistan, Indonesia and Central Asia. While better fruit quality this season has raised hopes, persistent crossing disruptions—especially with Afghanistan—and transport bottlenecks have offset gains.
Growers say prices have collapsed sharply, forcing panic sales. Rates for large kinno have fallen from over Rs120 per kg early in the season to as low as Rs75, while smaller fruit is selling for Rs35–40 per kg amid weak demand.
Industry leaders warn the crisis is crippling processing units and jobs. More than 100 factories reportedly failed to open this season, with dozens more shutting down as exports stall. Cold storages in Sargodha are nearly full, putting fruit worth millions of dollars at risk of spoilage, while growers fear losses of up to Rs10 billion.
Exporters are urging the government to urgently resolve issues, subsidise logistics, and help access alternative markets, warning that prolonged inaction could devastate farmers, workers and the wider economy.
Business
Pezeshkian pledges to facilitate Iran-Afghanistan trade
Iranian President Masoud Pezeshkian has said that Tehran will facilitate trade and economic exchanges with Afghanistan, including easing procedures at customs and local marketplaces.
He made the remarks during a televised interview following his visit to South Khorasan province, which shares a border with Afghanistan.
Pezeshkian, in a separate event addressing local business leaders, highlighted the province’s strategic advantages, citing its rich mineral resources, proximity to neighboring countries such as Afghanistan and Pakistan, and access to the ocean via the Chabahar port. He described the region as “a golden opportunity not found everywhere,” emphasizing its potential for economic growth and cross-border commerce.
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