Business
Ghani again states ‘no interim government’
President Ashraf Ghani on Wednesday once again stated he was opposed to the establishment of an interim government and emphasized that Afghanistan will remain independent.
Addressing guests at an event to mark the inauguration of Kamal Khan Dam, Ghani said that “papers, plans and rumors are coming,” but Afghanistan will remain “independent.”
This comes after US Secretary of State Antony Blinken sent a letter last month to President Ashraf Ghani and Abdullah Abdullah, head of the High Council for National Reconciliation (HCNR) that suggested a transitional government be formed.
According to Ghani, the Taliban has deprived Afghans of dozens of Kamal Khan Dams.
“Today, those who are fighting, should think about Kamal Khan Dam for a few minutes,” hei said.
Ghani said he will no longer consider Nimroz province as “deprived” and in a message to the Taliban, he said he was not building the dam for himself but for their children.
Afghanistan still stands by its word to provide water to Iran, Ghani said but stated that this would be as per the water treaty between the two countries and not more than what is agreed upon.
“If Iran wants more water, they should pay something,” Ghani said.
Ghani also stated that Afghanistan is currently looking into ways to produce wind and solar generated electricity and foreign companies are assisting.
On the Kamal Khan Dam initiation, he said one water channel, that will be used for irrigation purposes, will be completed this year. Others will also be established, he said.
Ghani said that from today, the control of water in the province is now in the hands of Afghans.
Business
Afghanistan and Uzbekistan emphasize expanding economic and trade cooperation
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.
Business
Rail transport from Iran to Afghanistan surges 17-fold
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.
Business
Iran looks to expand economic ties with Afghanistan through contract farming
Iran is exploring ways to deepen economic engagement with Afghanistan, focusing on contract farming and trade, as discussions continue over potential formal recognition of the Islamic Emirate of Afghanistan (IEA) government, a senior Iranian business official said.
According to Iran News Daily, Mahmoud Siadat, head of the Iran–Afghanistan Joint Chamber of Commerce, said recognition of the Islamic Emirate of Afghanistan would boost investor confidence and facilitate long-term projects, including rail links connecting Iran to China via Afghanistan.
While no formal recognition has been confirmed, Siadat noted that bilateral relations have steadily improved.
Iran exports over $3 billion in goods and services annually to Afghanistan, including technical and engineering services, while Afghan exports to Iran remain limited at around $100 million.
Siadat highlighted agriculture as a key growth area, with plans for contract farming where Iranian firms would provide technology, expertise, and guaranteed purchase agreements for Afghan crops and livestock.
“Instead of importing legumes from Canada, we can source them from Afghanistan,” he said, noting that structured agricultural cooperation could benefit both countries.
Remittances from Afghans working in Iran, he added, further underline the strong economic ties between the neighbors.
Even without formal recognition, trade remains robust, but Siadat emphasized that a clear diplomatic framework could unlock more investment and strategic projects.
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