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Ministry of energy pushes ahead with plans to increase power output

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Last Updated on: June 19, 2022

Officials from Afghanistan’s Ministry of Energy and Water have identified 16 electricity-generating projects that once established will increase power output and help make the country less reliant on its neighbors for this critical commodity.

The ministry’s spokesman Mawlavi Akhtar Mohammad Nasrat said of these 16, there are 12 thermal and solar power projects that have been identified and proposals have been shared with domestic and foreign investors in the hope of attracting financial backing.

Nasrat told Ariana News they have spoken to possible investors from Russia, Iran, the US, China and Turkey but as yet no agreements have yet been finalized.

“Companies and donors came here to Afghanistan from Russia, US, China, Iran, and Turkey and said they are interested in investing in this area to increase electricity generation across the country,” he said.

Economists also believe that if investors can be found to support this sector, and more electricity is generated, industry will grow.

One economist, Taj Mohammad Talash, said he thinks the agricultural sector would also grow if more power was generated. He said: “The Islamic Emirate can prioritize energy in three categories, through water, wind, and solar.”

Currently, Afghanistan pays its neighboring countries about $250 million a year for electricity as it generates only about 600 megawatts (MW) from several hydroelectric, fossil fuel and solar plants.

However, an additional 670 MW is imported from neighboring Iran, Uzbekistan, Tajikistan and Turkmenistan.

Power projects ‘prioritized’

In April, the IEA’s Economic Commission, chaired by Deputy Prime Minister Mullah Abdul Ghani Baradar, gave orders for various ministries to prioritize projects to generate electricity.

At the time, the commission said after “extensive discussions on all issues that the private sector is prepared to invest in” it was decided that the generation of electricity should be a priority.

According to the statement, the commission instructed the Ministry of Mines and Petroleum; the Ministry of Trade and Industry; the Chamber of Industry and Mines; as well as the Chamber of Commerce and Investment, under the leadership of the Ministry of Energy and Water, to also generate electricity from coal.

A shortage of power has plagued Afghanistan for decades despite it having ample hydropower, coal and fossil fuel resources.

Over the past few years however, one successful private partnership has emerged – between the Afghan government and Bayat Power, Afghanistan’s largest, Afghan-owned and operated power production company which has the region’s most technologically advanced gas fired electric power plant.

Launched in 2019, this commercial operation provides reliable and affordable electric power to thousands of people in Afghanistan.

Located in Sherberghan, in the north of the country, the epicenter of the nation’s gas-rich region, Bayat Power has steadfastly aimed to provide essential power for Afghanistan’s economic growth.

Powered by a Siemens SGT-A45 ‘Fast Power’ turbine, the world’s most advanced mobile gas to energy power solution, phase one of Bayat Power-1’s operations generates up to 41 megawatts of power for Afghan homes and businesses.

To date, Bayat Power has delivered over 600 million kilowatts of domestic power to the Afghan grid. However, Bayat Power hopes to eventually roll out three phases in total, that will generate more than 200 megawatts of electricity – enough to serve millions of Afghan residential and commercial clients.

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Tajik investors express interest in cement production in Afghanistan

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A delegation of Tajikistani investors has expressed interest in establishing a cement production factory in Afghanistan, signaling renewed economic engagement between the two neighbors after four years of limited activity.

The delegation met with Hedayatullah Badri, Afghanistan’s Minister of Mines and Petroleum, to discuss potential investment opportunities in the country’s mining and industrial sectors. Officials said the visit reflects Tajikistan’s increasing willingness to expand economic cooperation with Afghanistan.

During the meeting, the Tajik investors praised the Islamic Emirate for what they described as improved security and a more conducive investment environment across Afghanistan.

Minister Badri welcomed the investors’ proposal and assured them of the government’s full support, emphasizing that Afghanistan is ready to facilitate investment through streamlined procedures and favorable conditions.

Representatives of Afghanistan’s private sector also view the development as a positive step toward strengthening bilateral economic ties.

Abdul Jabbar Safi, head of the Afghanistan Industries Association, said:
“After four years, Tajikistan is looking to take part in Afghanistan’s economic sector. This is encouraging news for the governments and the people of both countries.”

Economic experts believe that deeper economic engagement between Afghanistan and Tajikistan could unlock significant mutual benefits.

Nazir Ahmad Khalil, an economic analyst, said: “Tajikistan and Afghanistan share language, culture and geography. Expanding trade and investment between the two countries can meaningfully improve their economic situations. Building trust will be essential for long-term cooperation, and such investment can play a major role in poverty reduction and confidence-building.”

This new chapter of economic cooperation between Afghanistan and Tajikistan comes at a time when, since the return of the Islamic Emirate to power, several major projects have been launched between Afghanistan and Central Asian states.

The leadership of the Islamic Emirate has repeatedly emphasized that it seeks to strengthen economic relations with neighboring countries, the region, and the wider world on the basis of mutual respect.

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Trade bodies warn almost 11,000 Afghan transit containers stuck at Karachi port

SCCI officials urged authorities to separate trade from political tensions and immediately launch dialogue to restore commercial traffic between the two countries.

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Trade bodies report that nearly 11,000 Afghan transit trade containers are stranded at Karachi port, while thousands more— including shipments of perishable goods—remain stuck at the Ghulam Khan, Spin Boldak, Kharlachi, and Torkham crossings between Afghanistan and Pakistan.

Traders involved in Pakistan–Afghanistan bilateral and transit commerce say they have suffered billions of Pakistani rupees in losses as the prolonged border shutdown continues to stall the movement of goods. Perishable food items have already begun to spoil, compounding financial losses.

They also report a sharp drop in bilateral trade volumes. Exporters who were already issued Form-E certificates have been unable to dispatch consignments, with the closure now nearing two months.

Sarhad Chamber of Commerce and Industry (SCCI) President Junaid Altaf said trade—already limited—has deteriorated further due to the closure of crossings. He estimated losses of roughly $45 million since the Torkham closure began, adding that the halt is damaging for both economies and directly affecting families whose livelihoods depend on trade.

SCCI officials urged authorities to separate trade from political tensions and immediately launch dialogue to restore commercial traffic between the two countries.

In recent weeks, repeated closures of the Pakistan–Afghanistan crossing have also brought pharmaceutical exports to a halt, putting nearly $200 million worth of medicines at risk. Hundreds of trucks carrying antibiotics, insulin, vaccines, and cardiovascular drugs remain stuck at Torkham and Chaman, with temperature-sensitive supplies facing potential spoilage.

The Pakistan Pharmaceutical Manufacturers Association (PPMA) warned that the disruption extends far beyond Afghanistan’s medicine supply. Afghanistan is Pakistan’s main overland route to Uzbekistan, Tajikistan, Turkmenistan, and Kazakhstan, and ongoing shutdowns are undermining key regional connectivity projects, including the Pakistan–Uzbekistan–Afghanistan railway.

Stakeholders are calling for urgent steps to reopen the crossings, warning that prolonged closures threaten not only pharmaceutical exports but Pakistan’s broader economic engagement across the region.

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Pakistan’s citrus export crisis deepens amid ongoing Afghanistan trade route closure

Afghanistan, which absorbs around 60% of Pakistan’s citrus exports, has remained closed to trade since mid-October.

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Pakistan’s citrus sector is facing a worsening export crisis as the closure of the Afghanistan crossing continues to block access to its largest market.

Despite the start of the 2025 citrus season, exports are set to fall further from an already steep decline — dropping from $211 million in fiscal year 2021 to just $92.5 million in fiscal year 2025.

Afghanistan, which absorbs around 60% of Pakistan’s citrus exports, has remained closed to trade since mid-October.

This year alone, Pakistan shipped 153,683 tonnes of citrus to Afghanistan, while exports through the Afghan transit route also supply Russia, Kazakhstan, and Uzbekistan. With that corridor shut, exporters warn that the bulk of Pakistan’s kinnow harvest could go unsold.

A temporary policy exemption now allows citrus shipments to transit through Iran, but exporters say volumes to Central Asia and Russia cannot compensate for the loss of the Afghan market.

The crisis, however, goes deeper than the current crossing closure situation. Pakistan’s citrus industry continues to suffer from long-standing structural challenges — including reliance on the outdated, seeded kinnow variety that makes up over 90% of exports.

Climate change, rising pest pressure, shrinking yields, and declining A-grade fruit quality have all eroded competitiveness. Yields have fallen to about six tonnes per acre, and nearly half of kinnow processing units have closed.

Global competitors such as Egypt, China, Spain, Morocco, and Brazil have overtaken Pakistan by introducing new seedless, high-yielding varieties with longer harvest windows. As profits shrink, farmers are abandoning citrus orchards: the cultivated area has dropped 16% in the past five years.

Experts say Pakistan must urgently invest in developing seedless, climate-resilient varieties and strengthen existing research centres. At the same time, trade officials need to diversify export destinations by securing new sanitary and phytosanitary agreements to reduce dependence on a single market.

Without structural reforms and diversified access, Pakistan’s signature fruit risks losing its place in global markets — and its farmers risk losing their livelihoods.

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