Business

Afghanistan’s oil sector is a source of growing interest among investors: IEA

Afghanistan Chamber of Commerce and Investment (ACCI) officials meanwhile called on the ministry to also focus on increasing the operational capacity of established oil extraction companies and in building refineries instead of focusing on attracting foreign investors.

Published

9 months ago

June 20, 2024

Ariana News

(Last Updated On: )

Afghanistan’s Ministry of Mines and Petroleum reports that the country’s lucrative oil sector is generating growing interest from a number of countries in the region including Iran, Turkey, Russia and Uzbekistan.

According to officials, companies in these countries have shown serious interest in investing in the extraction and refinement processes.

The ministry has however called on Afghan investors to also take advantage of opportunities in the sector.

Afghanistan’s Crude Oil Refinery Union has meanwhile urged the Islamic Emirate to support local investors in the extraction process but also by establishing refineries that meet international standards.

Afghanistan’s Crude Oil Refinery Union has meanwhile urged the Islamic Emirate to support local investors

Muhammad Younus Mohmand, Vice-Chairman of the ACCI, said: “Our wish is that the refineries that people invest in, in Afghanistan, should be supported.”

According to union officials, over $300 million has already been invested in the sector in the country, providing jobs to thousands of workers.

Working towards self-sufficiency

Despite having over 200,000 square kilometers of oil and gas reserves, Afghanistan currently purchases nearly 90 percent of its oil and gas needs from Central Asian countries and Iran.

But growing interest from companies in the region could mark a significant shift in Afghanistan’s energy sector, potentially reducing its reliance on imports and boosting regional economic ties.

Earlier this month, the ministry of mines and petroleum reported that it had successfully sold $80 million in crude oil.

For Afghanistan this was a major leap in the direction of growth, especially after China’s Xinjiang Central Asia Petroleum and Gas Company’s (CAPEIC) investment in Afghanistan last year of $49 million has helped boost the country’s daily crude oil output to more than 8,000 bpd.

Spanning Afghanistan and Tajikistan, the Amu Darya basin, where oil is extracted, is estimated to contain 962 million barrels of crude oil and 52,025 billion cubic feet of natural gas.

So far, CAPEIC’s investment of $49 million in Afghanistan has helped boost the country’s daily crude oil output to more than 1,100 metric tons (8,000 barrels per day), a volume that could increase significantly.

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Business

Iran’s non-oil export to Afghanistan up 31% in 10 months

Iran exported non-oil commodities valued at $1.9 billon to Afghanistan between March 20 last year and January 19 this year.

Published

1 hour ago

March 9, 2025

Ariana News

(Last Updated On: )

The value of Iran’s non-oil export to Afghanistan increased by 31 percent in the first ten months of the Persian calendar against the same period last year, Tehran officials confirmed.

The Tehran Times reported that Iran exported non-oil commodities valued at $1.9 billon to Afghanistan between March 20 last year and January 19 this year.

The spokesperson for the Trade Development Committee of the House of Industry, Mining, and Trade, Ruhollah Latifi, said Afghanistan was the fourth top export destination of Iranian products among Iran’s neighbors in the mentioned ten months.

In a meeting with an Iranian trade delegation in Kabul last August, Afghanistan’s interim Deputy Prime Minister Mullah Abdul Ghani Baradar Akhund said that his country is eager to attract Iranian investors in order to develop the Afghan mining industry, generate solar electricity and expand railway connectivity.

The Iranian delegation also proposed to launch a joint special industrial zone with Afghanistan.

Noting that Afghanistan has turned into a good place for making investment, Baradar said that the relevant ministries and organizations will cooperate and work closely with investors.

The Iranian delegation, made up of economic and trade players, also held a separate meeting with Afghanistan’s acting minister of commerce Haji Nooruddin Azizi. They called for the formation of a joint economic-mining zone between the two neighboring countries.

Business

Commerce Ministry signs MoU with 15 enterprises

Published

2 days ago

March 7, 2025

Ariana News

(Last Updated On: )

The Ministry of Industry and Commerce (MoIC) says it has signed memoranda of understanding worth over $12 million with 15 organizations to support and develop small and medium enterprises (SMEs).

During the signing ceremony, ministry officials emphasized that project implementation must prioritize support for individuals genuinely engaged in economic activities.

The ministry stated that 7,673 people in Kabul, Paktia, Paktika, Khost, Balkh, Kandahar, Logar, Kunduz, Baghlan, Badakhshan, Badghis, Faryab, Jowzjan, Nangarhar, Takhar, and Bamyan provinces will benefit from these initiatives.

The ministry’s spokesman Abdul Salam Jawad Akhundzada said, “These 15 organizations will execute developmental, skill-building, and educational projects valued at $12,475,406, focusing on entrepreneurship training, carpet industry development, jewelry, and handicrafts.”

Private sector representatives welcomed the move, stating that supporting SMEs will positively impact Afghanistan’s economic and developmental activities.

They added that consistent investment in the carpet industry could curb widespread unemployment and play a pivotal role in rural economic development.

Private sector members further noted that small businesses fulfill essential livelihood needs for communities and will contribute to training professional and technical personnel, as well as fostering growth in large-scale industries.

Business

Uzbekistan set to open permanent trade center in northern Afghanistan

Published

3 days ago

March 6, 2025

Ariana News

(Last Updated On: )

Uzbekistan is set to open a trade center in the northern city of Mazar-e-Sharif, which will provide Uzbek entrepreneurs with a platform to market their goods in Afghanistan.

According to Trend news agency, the center will cover an area of 220 square meters and will also be used to find new trading partners between Afghan and Uzbek entrepreneurs and expand export opportunities.

The center will house permanent showrooms and warehouses for pharmaceuticals, electrical goods, and construction materials.

Trade turnover between Uzbekistan and Afghanistan reached $153.7 million in January 2025. This is 231 percent more compared to the same period last year ($46.3 million in January 2024).

Last week the Uzbek Ministry of Investment, Industry and Trade said Uzbekistan and Afghanistan plan to increase the trade turnover to $3 billion.

The current state and future prospects of bilateral trade and economic relations were discussed on Saturday during a meeting between Uzbekistan’s Minister of Investment, Industry and Trade Laziz Kudratov, and Afghan Trade Minister Nuruddin Azizi, who was visiting the Termez International Trade Center in the Surkhandarya region, the ministry said in a statement.

The latest trade house development comes amid concerted efforts by both countries to boost their cross-border trade relations.