Business
$1 billion US aid cut to ‘hit Afghan security force funds’
The US would cut $1 billion of its aid to Afghanistan from funds for Afghan security forces, Reuters reported citing to US sources.
The sources have told Reuters that the aid cut would undercut both Kabul’s ability to fight the Taliban and its leverage to negotiate a peace deal with them.
After the US secretary of state, Mike Pompeo failed to convince Ghani and Abdullah to an agreement to resolve the political disputes following the announcement of the results of the election, the US announced a $1 Billion reductions in aid to the country.
Pompeo, however, said the aid cut could be reversed if the two sides resolved their dispute.
Meanwhile, the US’s Principal Deputy Assistant Secretary for South and Central Asian Affairs, said in a tweet that international aid requires partnership with an inclusive government, referring to Afghanistan.
“It can’t be business as usual for international donors in Afghanistan. International aid requires partnership with an inclusive government and we all must hold Afghan leaders accountable to agree on a governing arrangement,” Wells said.
Two U.S. congressional aides have told Reuters on condition of anonymity due to the sensitivity of the matter that State Department officials told Congress the $1 billion would come from a $4.2 billion Pentagon fund that underwrites about three-quarters of the Afghan security forces’ annual budget.
“The idea they would cut security forces funding goes against U.S. national security interests,” one aide has told Reuters, arguing the money is needed to maintain the U.S.-backed government’s ability to fight the Taliban while preserving its bargaining power in peace talks.
Most of the fund pays for salaries, food, fuel, equipment, and infrastructure to support Afghan troops and national police, the report said.
Business
Afghanistan and Uzbekistan sign 20 trade MoUs worth $267 million
Afghanistan’s Ministry of Industry and Commerce says 20 trade memorandums of understanding (MoUs) worth $267 million have been signed following business meetings between Afghan traders and private-sector representatives and officials from Uzbekistan’s Kashkadarya province.
The agreements were signed on the sidelines of a business networking conference between Afghan private-sector representatives and Kashkadarya in Kabul. Officials from Afghanistan’s Ministry of Industry and Commerce, representatives of Kashkadarya province, Uzbekistan’s ambassador to Kabul, and private-sector representatives from both countries attended the conference.
Ahmadullah Zahid, Deputy Minister of Industry and Commerce, said economic relations and trade between Afghanistan and Uzbekistan have increased following visits by delegations from both sides.
He stressed the need to simplify trade and transit procedures and remove existing obstacles. He also said Afghanistan is ready to discuss the transit of its export goods through Uzbekistan.
Shahret Muradov, Deputy Governor of Kashkadarya, said the province is ready to expand trade and industrial cooperation with Afghanistan and host Afghan delegations and traders.
The agreements cover sectors including food products, clothing, construction, livestock, electronic equipment, and furniture.
Business
Afghanistan transports more than 704,000 tonnes of goods by rail in August
The Hairatan railway route handled the largest share, with 464,767 tonnes, followed by Khaf–Herat with 137,687 tonnes, Torghundi with 62,015 tonnes, and Aqina with 39,831 tonnes.
Afghanistan transported more than 704,000 metric tonnes of goods through its railway network in August 2026, the Ministry of Public Works said.
The ministry said 704,300 metric tonnes of petroleum products, non-petroleum goods and other materials were imported and exported through four major railway routes during the month.
The Hairatan railway route handled the largest share, with 464,767 tonnes, followed by Khaf–Herat with 137,687 tonnes, Torghundi with 62,015 tonnes, and Aqina with 39,831 tonnes.
The ministry said the railway network also supported Afghan exports during the month, including 3,751 tonnes of carbonated beverages shipped abroad.
According to the ministry, expanding rail transportation and exports could contribute to job creation, higher national revenues and greater economic stability and self-sufficiency.
The ministry added that the Islamic Emirate is working to improve trade conditions and expand transportation facilities for Afghan traders.
Business
TAPI pipeline nears first gas sales in Afghanistan
Herat Governor Mawlavi Islam Jar recently said construction of the TAPI pipeline in the province is expected to be completed within two months.
The Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline is moving closer to its first commercial gas sales in Afghanistan after years of delays, with Herat expected to become the first Afghan market served by the project.
According to the Times of Central Asia, Turkmenistan plans to supply gas to Herat through the TAPI pipeline, while the timeline for extending the project to Pakistan and India remains uncertain.
The report says Turkmengaz and Afghan Gas signed a memorandum on August 10 covering the purchase of gas through TAPI. However, the agreement does not yet specify the price, supply volume or exact date for the start of commercial deliveries.
Afghan and Turkmen officials are also working to develop a gas distribution network in Herat to supply industrial facilities, power plants and households.
Meanwhile, Herat Governor Mawlavi Islam Jar recently said construction of the TAPI pipeline in the province is expected to be completed within two months.
According to the governor, Turkmen officials have completed their work on the project and will hand it over to Herat authorities once the remaining process is finalized.
Jar has also urged residents and factory owners in Herat’s industrial park to make the necessary preparations for the start of gas distribution and pipeline connections.
The TAPI project is designed to transport Turkmenistan’s natural gas through Afghanistan and Pakistan to India, with a planned annual capacity of 33 billion cubic meters.
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