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Silk Road’s Khunjerab Pass opens up to Afghan-China trade

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The first ever overland consignment of goods from China to Afghanistan via Pakistan’s Khunjerab Pass in the Gilgit-Baltistan region got underway this week.

A ceremony to mark the occasion was held in Gilgit-Baltistan region on Monday and attended by Pakistani officials.

The President of Pakistan’s Frontier Custom Agents Association (FCAA), Zia-ul-Haq Sarhadi said that this development will not only increase the volume of trade at a regional level, but will also create a large number of livelihood opportunities for people associated with customs clearance, goods transportation, fuel business, daily wagers etc, the Associated Press of Pakistan reported.

The first consignment started its journey from Kasghar, China and after crossing over to Pakistan it was transported via the Khunjerab Pass to Kabul in Afghanistan. This transit route will reduce overland travel time by almost 70% and will reduce logistics costs by more than 30%, Sarhadi said.

Sarhadi who is also the Director of the Pak-Afghan Joint Chamber of Commerce and Industry (PAJCCI) said that the utilization of the Silk Route by China for transportation of goods to Afghanistan would also be beneficial for early operationalization of the major CEPC project.

Pakistan’s Express Tribune newspaper reported that the first consignment consists of an assortment of dry fruits.

“This inaugural ceremony reflects a monumental step towards fostering stronger ties between nations and promoting cross-border trade,” said Gilgit-Baltistan Chief Secretary Mohyuddin Wani.

“By facilitating the movement of goods from China to Afghanistan via Pakistan, the TIR agreement stands as a testament to the potential of cooperative initiatives in boosting economic growth and regional stability.”

The Ministry of Industry and Commerce of Afghanistan also said on X that the new trade route will reduce the travel time by 70 percent and reduce costs by 30 percent.

The Khunjerab Pass is the highest paved international border crossing in the world and the highest point on the Karakoram Highway.

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Pakistan’s kinno exports falter as tensions with Afghanistan continue

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Pakistan’s kinno exports remain far below potential as regional tensions, high freight costs and weak government support continue to choke the citrus trade.

Despite being a leading global citrus producer, Pakistan is expected to export just 400,000–450,000 tonnes of kinno in the 2025–26 season, compared with an estimated capacity of 700,000–800,000 tonnes.

Exports in 2024–25 stood at around 350,000–400,000 tonnes, mainly to Russia, the UAE, Saudi Arabia, Afghanistan, Indonesia and Central Asia. While better fruit quality this season has raised hopes, persistent crossing disruptions—especially with Afghanistan—and transport bottlenecks have offset gains.

Growers say prices have collapsed sharply, forcing panic sales. Rates for large kinno have fallen from over Rs120 per kg early in the season to as low as Rs75, while smaller fruit is selling for Rs35–40 per kg amid weak demand.

Industry leaders warn the crisis is crippling processing units and jobs. More than 100 factories reportedly failed to open this season, with dozens more shutting down as exports stall. Cold storages in Sargodha are nearly full, putting fruit worth millions of dollars at risk of spoilage, while growers fear losses of up to Rs10 billion.

Exporters are urging the government to urgently resolve issues, subsidise logistics, and help access alternative markets, warning that prolonged inaction could devastate farmers, workers and the wider economy.

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Pezeshkian pledges to facilitate Iran-Afghanistan trade

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Iranian President Masoud Pezeshkian has said that Tehran will facilitate trade and economic exchanges with Afghanistan, including easing procedures at customs and local marketplaces.

He made the remarks during a televised interview following his visit to South Khorasan province, which shares a border with Afghanistan.

Pezeshkian, in a separate event addressing local business leaders, highlighted the province’s strategic advantages, citing its rich mineral resources, proximity to neighboring countries such as Afghanistan and Pakistan, and access to the ocean via the Chabahar port. He described the region as “a golden opportunity not found everywhere,” emphasizing its potential for economic growth and cross-border commerce.

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Afghanistan-Kazakhstan banking ties discussed in Kabul meeting

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A Kazakh delegation led by the Deputy Minister of Finance of Kazakhstan met with Sediqullah Khalid, First Deputy Governor of Da Afghanistan Bank, to discuss ways of strengthening banking and economic cooperation between the two countries.

According to a statement issued by Da Afghanistan Bank, Khalid said the central bank is keen to establish regular and effective banking relations with Kazakhstan as part of broader efforts to expand bilateral trade.

He noted that enhanced banking cooperation would help facilitate trade, investment, and wider economic interaction between Afghanistan and Kazakhstan, while also contributing to financial stability at the regional level.

Members of the Kazakh delegation also emphasized the importance of developing banking and economic ties and expressed their readiness to expand joint cooperation.

The two sides further agreed to establish technical committees from both countries to hold expert-level discussions and advance practical steps for cooperation.

 
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