Business
India to build Shahtoot dam in Kabul
India’s External Affairs Minister S. Jaishankar announced on Tuesday at the Geneva Conference 2020 that his country will build a new dam to provide Kabul residents with safe drinking water.
Addressing delegates virtually, Jaishankar said the Shahtoot dam will help supply Kabul residents with water.
“I am happy to announce today an agreement with Afghanistan for building the Shahtoot dam which will provide safe drinking water to two million Kabul residents.
He also said India will launch phase four of a high impact community development program in Afghanistan, which includes around 150 projects worth $80 million dollars.
He stated India has invested heavily in peace and development in Afghanistan but said his country calls for an immediate and comprehensive ceasefire.
“We also believe that the peace process must be Afghan-led, Afghan-owned and Afghan-controlled.”
A feasibility study for the dam was reportedly finalized in 2012 and the estimated cost will be around $236 million.
This dam would also allow for irrigation systems to cover 4,000 hectares of land in the Charasiab and Khairabad districts of Kabul province.
Once complete, officials said the dam will hold 146 million cubic meters of potable water for two million people in Kabul and irrigation water for over 4,000 hectares of land.
India has played a major role in the reconstruction of Afghanistan since the fall of the Taliban regime and has invested over $2 billion in various reconstruction and infrastructure projects.
In 2016, Ghani and Indian Prime Minister inaugurated the Indian-funded “Friendship Dam” in Heart Province, which can also irrigate over 80,000 hectares of land and provide electricity to thousands of homes in the western Afghan province of Herat.
Business
Afghan, Iranian firms sign three cooperation MoUs at Kabul meeting
Three cooperation agreements were signed between Iranian and Afghan companies during a business meeting held in Kabul aimed at expanding trade and economic ties between the two countries.
The gathering, hosted by the Embassy of Iran in Kabul, brought together more than 200 Iranian and Afghan business leaders, industrialists, and investors.
According to an embassy statement, Iran’s chargé d’affaires in Kabul, Alireza Bigdeli, highlighted the existing potential for expanding economic and trade cooperation between Iran and Afghanistan.
Following the opening remarks, members of the Iran–Afghanistan Joint Chamber delegation held sector-specific discussions with Afghan business representatives across key industries, including petrochemicals, construction, pharmaceuticals, cement production, laboratory equipment, food processing, battery manufacturing, and technical and engineering services.
Business
Iran-Afghanistan joint chamber of commerce delegation arrives in Kabul to boost trade ties
The delegation will participate in Afghanistan’s National and International Industry and Mines Exhibition and hold business meetings.
A delegation from the Iran-Afghanistan Joint Chamber of Commerce has arrived in Kabul to take part in an international exhibition, according to the Iranian Embassy in Afghanistan.
In a statement posted on its X account on Thursday, the embassy said the delegation will participate in Afghanistan’s National and International Industry and Mines Exhibition and hold business meetings and conferences with Afghan officials.
The embassy added that the visit aims to expand trade relations between Afghanistan and Iran and strengthen economic cooperation between the two neighboring countries.
The Afghanistan National and International Industry and Mines Exhibition opened in Kabul on Wednesday, June 29, 2026, bringing together domestic and foreign participants to showcase opportunities in industry, mining, and commerce.
Afghanistan and Iran share long-standing economic relations, with trade cooperation continuing despite ongoing regional political and financial challenges.
Business
Afghanistan eyes direct Basmati rice imports from India amid tensions with Pakistan
Afghanistan is exploring direct imports of Basmati rice from India as it seeks to diversify its supply sources amid ongoing tensions with Pakistan, according to a report by The Hindu.
The report said Indian exporters and Afghan importers are expected to meet next month to discuss expanding direct trade in Basmati rice, following preliminary talks between officials from both countries held last week with the facilitation of the PHD Chamber of Commerce and Industry.
Afghanistan consumes nearly 500,000 tonnes of Basmati rice annually and has traditionally relied on imports from neighboring Pakistan. However, industry sources told The Hindu that recent strains in Afghanistan-Pakistan relations have encouraged Kabul to seek alternative suppliers, including India.
Representatives of Afghanistan’s diplomatic mission in New Delhi reportedly took part in the discussions and expressed interest in increasing purchases of Indian Basmati rice. At present, some Indian rice reaches Afghanistan indirectly through traders in Iran and Dubai, a route that adds to transportation and transaction costs.
One proposal under consideration is to transport rice through Iran’s Bandar Abbas Port, subject to agreements between the two governments. The discussions are also expected to cover logistics, payment mechanisms, and the possibility of barter trade, with Afghanistan’s dried fruit exports to India seen as a potential component of future trade arrangements.
According to The Hindu, a direct trade arrangement could help India expand its share of Afghanistan’s Basmati market, which has historically been dominated by Pakistani suppliers.
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