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IEA discusses easing banking transactions with Kazakhstan

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A delegation of the Islamic Emirate of Afghanistan (IEA) discussed facilitating international financial transactions with private banks on a recent trip to Kazakhstan in a bid to ease the Afghan banking sector’s isolation, the acting commerce minister said.

Nooruddin Azizi, acting Minister of Commerce and Industry, led a business delegation to Kazakhstan last week.

In addition to banking he discussed the possibility of preferential trade tariffs, telecommunications projects and transit routes, including for possible shipments of Russian oil to South Asia, he told Reuters in an interview on Wednesday.

“We had teams from Da Afghanistan Bank (Afghanistan’s central bank) and private banks in Kazakhstan, they discussed and are trying to find good ways to decrease the price of financial transactions … we don’t have any banking limitation with Kazakhstan,” he said.

Afghanistan’s banking sector has been hampered and international transactions severely limited since the IEA administration took over two years ago as foreign forces withdrew.

Some IEA leaders are subject to United Nations and United States sanctions. Many international banks have limited transactions with Afghan banks to reduce risk, economists and diplomats say, contributing to a stall in the financial system.

That has been exacerbated by the United States and other governments freezing Afghan central bank assets held abroad.

Azizi also said transactions that went ahead often incurred expensive fees, sometimes 5% of the transaction, which they hoped to reduce.

Fixing Afghanistan’s banking sector was a priority, he said, adding that there are no sanctions directly on banks. But he acknowledged international financial institutions were not easily facilitating transactions.

“It is the preference of some banks that they don’t want to deal with Afghanistan, they might think the trade volume is low, but for us it is very important,” he said.

The United States has issued exemptions to sanctions for humanitarian operations and at times helped facilitate specific transactions, such as an Afghan central bank payment to European companies to buy fresh bank notes.

But traders and international agencies say normal banking has not been restored, hampering the economy and causing headaches for traders and aid programs.

The United Nations, which uses billions of dollars a year to fund humanitarian operations, has to fly in pallets of cash in physical shipments to Kabul.

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Pakistan appoints 26 new jirga members for border crisis talks in Afghanistan 

Customs sources have said trade suspension is causing an estimated daily loss of $3 million in bilateral trade

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Trucks at Torkham
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The Pakistani authorities have appointed a new 26-member jirga to hold further talks in Afghanistan over reopening Torkham border after the first round of talks hit a stalemate last week. 

Torkham crossing was closed almost a month ago when Pakistan border officials opposed the reconstruction and renovation of a security check post on the Afghan side. 

Sources told Pakistan’s Dawn news outlet that the new jirga would consist of 26 members, including experienced and influential tribal elders and local traders who are mostly members of Khyber Chamber of Commerce and Industry.

The source told Dawn talks could resume today, Monday March 17.

Torkham, a key border crossing between Pakistan and Afghanistan in the Khyber District of Khyber Pakhtunkhwa, remained closed for the 24th day on Monday amid rising concerns among traders of both countries who have suffered enormous losses due to the closure. 

The crossing was closed on February 21 after escalation of tensions between the border forces on both sides. During subsequent exchanges of fire, three Afghan soldiers died while eight Pakistani paramilitary troops also sustained injuries.

Customs sources have said trade suspension is causing an estimated daily loss of $3 million in bilateral trade adding that over the first 20 days, approximately $60 million in trade was lost.

Torkham Border Crossing facilitates the daily movement of around 10,000 people to Afghanistan and is a key trade route between the two countries. Over 5,000 trucks, including those carrying perishable goods, are currently stranded, causing heavy financial losses.

 

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Uzbekistan investors show keen interest in mining and construction sectors

The Uzbek Ministry of Investment, Industry and Trade said last month that Uzbekistan and Afghanistan plan to increase the trade turnover to $3 billion.

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Uzbek investors met last week with Afghanistan’s Deputy Minister of Commerce and Industry, Ahmadullah Zahid, and showed an interest in the construction and mining sectors in Afghanistan. The Ministry of Commerce and Industry (MoCI) said in a statement after the meeting that the Uzbek delegation had been assured that Afghanistan was secure and that there are vast investment opportunities in the construction and mining sectors.

Zahid reaffirmed the government’s commitment to supporting both domestic and foreign investors, ensuring a favorable business environment. He also said he hoped the investments would help boost Afghanistan’s economy and further strengthen economic relations between the two neighbouring nations. This comes after Uzbekistan opened a trade center in the northern city of Mazar-e-Sharif early this month.

The trade center provides Uzbek entrepreneurs with a platform to market their goods in Afghanistan.

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

The Uzbek Ministry of Investment, Industry and Trade said last month that Uzbekistan and Afghanistan plan to increase the trade turnover to $3 billion.

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

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Afghanistan records trade volume of $292 million via air corridors in 1403 solar year

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Afghanistan’s Ministry of Industry and Commerce says that in the solar year 1403 (April 2024 to March 2025), goods worth $292 million were transported through air corridors.

Abdulsalam Jawad Akhundzada, the ministry’s spokesman, said that the value of exports through air corridors this year totalled $125 million and imports $167 million.

He added that the main export items were dried fruits, saffron, dried and fresh figs, jujubes, pine nuts and handicrafts, and the main import items were medicines and electronic devices.

Akhundzada said that exports happened through Kabul, Kandahar and Mazar-i-Sharif airports to the United States, Germany, China, India, Britain, South Africa, Austria, United Arab Emirates and some other countries.

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