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Afghanistan’s surging unemployment triggered by Coronavirus outbreak

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Last Updated on: April 30, 2020

Afghanistan’s National Department of Labor states that two million people have lost their jobs as a result of the COVID-19 outbreak all over the country.
It says that if the government fails to prevent the increase of poverty and unemployment in the country, Afghanistan will face a humanitarian crisis.
“All over the country 15 million people are eligible for employment among which 8 million are unemployed and the rest has seasonal jobs,” the department says.
According to officials in the labor department, the Coronavirus outbreak has added 2 million more unemployed people to the graph.
The ministry of economy is also concerned about the increased poverty in the country.
“Strategies must be devised and submitted to the government to resolve the unemployment problem,” said Yonus Salak, the spokesperson of the ministry.
Some members of parliament believe that corruption in government administration has led to economic crisis and poverty.
Experts of economy say that if the government had worked on infrastructural projects, we would not have faced such a rise in the unemployment rate in the country.

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Afghanistan records 33% rise in railway cargo transport

The bulk of cargo passed through the key rail links at Hairatan, Aqina, Torghundi, and the Khawaf–Herat railway connecting Afghanistan with Iran.

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Afghanistan has recorded a sharp increase in rail freight activity, with cargo transported through the country’s railway network rising by more than 33 percent in the first 11 months of the current year compared to the same period last year, officials said.

Mohammad Ashraf Haqshenas, spokesperson for the Ministry of Public Works, said more than five million metric tons of goods were moved through four major railway ports during the reporting period.

According to Haqshenas, shipments included fuel, non-oil commercial goods and other materials entering and transiting the country via the northern and western corridors.

The bulk of cargo passed through the key rail links at Hairatan, Aqina, Torghundi, and the Khawaf–Herat railway connecting Afghanistan with Iran.

The rail network plays a critical role in Afghanistan’s trade infrastructure, offering a cost-effective alternative to road transport for bulk imports such as petroleum, construction materials and food supplies.

As a landlocked country, Afghanistan relies heavily on transit routes through neighboring states to sustain its economy.

Haqshenas said that since the return to power of the Islamic Emirate of Afghanistan, several railway development and expansion projects have been initiated to improve connectivity and increase freight capacity. Some projects have been completed, while others remain under construction.

Officials say the growth in rail cargo reflects gradual improvements in transit coordination with regional partners, including Uzbekistan, Turkmenistan and Iran.

The government views railway expansion as central to its broader strategy of turning Afghanistan into a regional trade and transit hub linking Central Asia to South Asia and the Middle East.

The ministry added that continued investment in rail infrastructure is expected to strengthen economic activity, generate revenue and facilitate greater regional integration in the years ahead.

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Afghanistan and Uzbekistan emphasize expanding economic and trade cooperation

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Nooruddin Azizi, Minister of Industry and Commerce of the Islamic Emirate of Afghanistan (IEA), during his official visit to Termez, Uzbekistan, met with Jamshid Khodjayev, Deputy Prime Minister of Uzbekistan, to discuss expanding bilateral economic ties.

The meeting was attended by Mohammad Yousuf Wafa, Governor of Balkh, Abdul Ghaffar Bahr, Afghan Ambassador to Tashkent, and several representatives from Afghanistan’s private sector. The two sides held extensive talks on enhancing trade relations, increasing trade volumes, expanding transit routes, removing trade barriers, and promoting joint economic initiatives.

Minister Azizi emphasized the growing partnership between the two countries and stressed the need to accelerate the implementation of agreements while providing greater support and facilities for traders and investors.

Deputy Prime Minister Khodjayev welcomed the Afghan delegation, highlighting the interest of Uzbek investors in sectors such as agriculture, mining, transport, infrastructure, and health. He also announced Uzbekistan’s readiness to deploy technical teams to support the execution of joint projects.

Azizi expressed Afghanistan’s full commitment to cooperating on shared economic initiatives, while representatives from the Afghan private sector shared their proposals, emphasizing the importance of closer collaboration between the two countries’ private sectors.

The meeting also included participation from Uzbekistan’s Ministers of Transport, Agriculture, Energy, and Health, the First Deputy Minister of Foreign Affairs, and several provincial governors, who joined online.

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Rail transport from Iran to Afghanistan surges 17-fold

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Rail freight between Iran and Afghanistan has increased 17-fold during the 1404 solar year, underscoring a sharp rise in cross-border trade and transit activity, Iranian officials say.

Shahryar Naqizada, Director General of Foreign Trade for Iran’s Railway, told state news agency IRNA that between March 2025 and February 2026, some 650,000 tons of goods were transported to Afghanistan by rail.

Of that total, approximately 150,000 tons consisted of transit cargo — goods originating in third countries and routed through Iran before entering Afghanistan.

The surge reflects Tehran’s broader push to strengthen regional connectivity and position itself as a key trade corridor linking Central Asia to international markets.

Rail links between the two neighbors have become increasingly important as Afghanistan seeks alternative trade routes and more cost-effective import channels.

A major driver of this growth is the Khaf–Herat railway line, which connects northeastern Iran to western Afghanistan and has gradually expanded commercial operations in recent years.

The line reduces transport costs and transit times compared to road freight, while also improving reliability for bulk commodities such as construction materials, fuel, food products, and industrial goods.

Looking ahead, Naqizada said Iran aims to move two million tons of cargo through the Shamtigh border crossing in the 1405 solar year (2026–2027), calling the target achievable given current momentum.

The increase in rail shipments comes amid expanding economic engagement between the two countries, including discussions on infrastructure investment, transit cooperation, and agricultural trade.

Analysts say improved rail connectivity could further integrate Afghanistan into regional supply chains, particularly if complementary customs and logistics systems are strengthened on both sides of the border.

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