AGP Executive Report

Russia Trade: Russia says bilateral trade with Afghanistan doubled in the first half of 2026, and Deputy Prime Minister Alexey Overchuk is expected in Kabul for talks on expanding economic ties. Transport Links: At an ECO meeting, Taliban officials discussed rail projects linking Afghanistan with Turkmenistan and Iran, more freight services and a possible passenger train to Iran. Investment: Turkmen construction firm OJAR AZIYA showcased plans for a cross-border highway and a large logistics complex at Torghundi; a separate $3 million investment is set to establish a plastic-sack and yarn plant in Mazar-e-Sharif. Household Hardship: Rising unemployment and shrinking purchasing power are deepening hunger, with aid agencies warning that millions face acute food insecurity this winter.

Russia-Afghanistan Trade: Trade doubled in the first six months of 2026, Russian envoy Zamir Kabulov said, while noting that volumes remain low and growth should be gradual. Investment: A $3 million plastics and yarn factory is planned for Mazar-e-Sharif, and Iran says its investors are interested in Afghanistan’s manufacturing and business sectors. Trade Routes: Hairatan railway port is handling more than 280 freight wagons a day as regional trade expands; contracts worth $934 million were also reported at the Abu Hanifa exhibition. Household Pressures: Afghanistan faces record hunger, with 15.9 million people experiencing acute food insecurity. Rising prices have also cut Afghan laborers’ purchasing power by 25%.

Trade: Russia says Afghanistan trade turnover doubled in the first half of 2026, though volumes remain modest, and the growth trend is stable. Investment: A $3 million plastic sack and yarn plant is planned for Mazar-e-Sharif, while contracts worth $934 million were signed at the Abu Hanifa exhibition earlier this week. Markets: Uzbekistan is gaining ground in Afghanistan’s flour market as Kazakhstan’s exports decline. Balkh honey production rose 17%, but a lack of cold-storage facilities threatens other farm produce. Household Economy: Food insecurity has reached record levels, with 15.9 million people facing acute hunger; rising prices are also eroding workers’ purchasing power. Women in Business: Taliban restrictions have shut women-run shops and narrowed their ability to earn income, while costs rise and goods become scarcer.

Food Security: Afghanistan recorded South Asia’s highest hunger score, with 15.9 million people facing crisis-level hunger or worse. Acute malnutrition is forecast to reach record levels in 2027, despite a strong agricultural season, as aid cuts, rising prices and returning migrants strain households. Local Industry: A new plastic-sack and yarn plant in Mazar-e-Sharif, backed by a reported $3 million investment, is expected to create jobs and reduce reliance on imports. Balkh’s honey production also rose 17%. Energy & Trade: Power shortages have shut more than two-thirds of Kandahar’s factories, while the CASA-1000 project in Afghanistan is 70% complete. Traders are also losing millions to Pakistan route closures, sharpening interest in alternatives such as Iran’s proposal to lease Chabahar port facilities.

Food Security: Afghanistan faces record hunger, with 15.9 million people already experiencing acute food insecurity and 19.2 million projected to need urgent support this winter. The FAO says returning migrants, rising prices and disrupted trade routes are deepening pressure on households. Regional Trade: Traders are losing millions from Pakistan route closures, increasing the need for alternatives. Afghanistan has welcomed Iran’s Chabahar port proposal, while Hairatan rail handles more than 280 freight wagons a day. Agriculture: Balkh honey production rose 17% to seven tons, with producers exporting to Iran, Saudi Arabia and Uzbekistan but warning that cheap, low-quality imports hurt local sales. Energy: CASA-1000 is 70% complete, and Afghanistan is pursuing four regional power-transmission projects.

Regional Outlook: The IMF says Afghanistan and much of Central Asia have weathered Middle East turmoil better than expected, but warns that shrinking reserves and higher fuel costs could weaken the cushion. Trade and Transit: Kazakhstan aims to lift annual transit cargo to 100 million tons by 2035, while CAREC is seeking to turn transport links into trade corridors, with more than $7.5 billion in financing planned through 2030. Afghan Commerce: Traders are losing millions as a Pakistan route closure disrupts trade. Afghanistan is also pursuing Iran’s proposal to lease Chabahar port facilities, while a regional power project, CASA-1000, is reported 70% complete. Agriculture: A shortage of cold-storage facilities threatens Afghan produce, putting farmers’ access to markets and incomes at risk.

Trade Disruption: A Pakistan route closure is costing Afghan traders millions, even as Hairatan railway port handles more than 280 freight wagons daily amid expanding regional trade. Energy Links: Afghanistan and Uzbekistan agreed to speed up work on the 500-kilovolt Surkhan–Puli Khumri power line, addressing financing and technical obstacles. Investment & Deals: An Afghan business exhibition generated $934 million in signed contracts; separate trade agreements include nearly $400 million with Uzbekistan and India and $451.8 million in Iran trade memorandums. Jobs & Livelihoods: UNHCR and JICA are helping returnees restart businesses and create jobs for women and displaced people. But workers’ purchasing power has fallen 25% amid rising food costs, while a lack of cold storage puts farm produce at risk. India Ties: Taliban Foreign Minister Amir Khan Muttaqi and India’s Kabul envoy discussed expanding economic cooperation between the two countries.

Trade and Transit: Hairatan railway is handling 280–300 freight wagons a day, strengthening links with Central Asia and China and easing import routes for Afghan businesses. Investment: Afghanistan’s Chamber of Commerce says contracts worth $934 million were signed at the Abu Hanifa exhibition, spanning industry, mining, energy, manufacturing and infrastructure; Iranian investors have also expressed interest in local manufacturing and other sectors. Industry: Power shortages have shut more than two-thirds of factories in Kandahar, industrialists say, highlighting a major constraint on production. Regional Deals: Afghan, Uzbek and Indian firms signed nearly $400 million in agreements, while Afghanistan and Iran announced trade deals worth $451.8 million. Household Pressures: Afghan laborers’ purchasing power has fallen 25% amid rising food costs, according to the WFP.

Investment: Iranian officials say private-sector investors are interested in Afghanistan’s manufacturing and mining industries, while Afghan business leaders are urging joint ventures and technology partnerships. Agriculture: Kabul told the EU it needs more support for farmers and alternative livelihoods; separately, analysts warn inadequate cold storage causes losses of about a quarter of the country’s agricultural produce. Industry: Power shortages have shut more than two-thirds of factories in Kandahar, industrialists say, raising concerns about production and jobs. Regional trade: Kyrgyzstan has invited an Afghan business delegation to Bishkek to discuss trade, investment and transport links. Earlier agreements with Iran were reported to total $451.8 million. Livelihoods: Taliban restrictions continue to undermine women’s businesses and employment, leaving many financially strained.

Iran Trade: Afghan business leaders at Shiraz Expo explored new trade and investment links, while 28 Afghan-Iranian agreements worth $451.8 million point to expanding commercial ties. Investment: Afghan and US business leaders discussed trade and investment opportunities, as a regional trade fair connected Afghan firms with nearby markets. Industry: Power shortages have shut more than two-thirds of factories in Kandahar, with industrialists warning they may relocate. Regional Deals: Afghan, Uzbek and Indian firms signed nearly $400 million in trade agreements; Afghanistan also secured land at Iran’s Chabahar port for investment, while the Hairatan rail hub is emerging as a link to overseas markets. Household Pressure: The World Food Programme says Afghan workers’ purchasing power has fallen 25% as jobs decline and food costs rise. Women’s Businesses: Entrepreneurs in Kabul face mounting poverty and restrictions that are squeezing their businesses. Disaster Costs: Floods and other natural disasters have damaged roads, homes and farmland, disrupting livelihoods across the country.

Investment: Afghanistan’s Chamber of Commerce and the Afghanistan–America Joint Chamber discussed investment in infrastructure, mining, oil refining and manufacturing, including joint ventures to finance major projects. Trade Deals: Afghanistan and Iran signed 28 agreements worth $451.8 million; Afghan, Uzbek and Indian firms also reached nearly $400 million in trade deals. Iran says port access for Afghanistan could be arranged through leases, not a transfer of territory. Transport Links: Hairatan railway port is emerging as a gateway to overseas markets, while commercial use of the new Wakhan road to China awaits Beijing’s approval. Industry: Power shortages have shut more than two-thirds of Kandahar’s factories, industrialists say, raising fears of factory relocations. Household Finances: The World Food Programme says Afghan workers’ purchasing power has fallen 25% as jobs decline and food costs rise. Women in Business: Women entrepreneurs in Kabul are building businesses despite restrictions, but limited opportunities and weak earnings are making growth difficult.

Iran Trade: Afghan and Iranian businesses signed 28 memorandums of understanding worth $451.8 million, while officials discussed expanding trade and private-sector ties. A preliminary plan to allocate nearly 110 hectares at Iran’s Chabahar Port to Afghan investors could improve access to transit routes, though banking and sanctions challenges remain. Regional Deals: Afghan, Uzbek and Indian firms also signed 22 agreements valued at more than $400 million, targeting trade, investment and logistics. Energy & Industry: Iran discussed exporting 2,000 megawatts of electricity to Afghanistan. In Kandahar, industrialists say erratic power supplies are forcing some factories to relocate; reports say 225 of 355 factories in the industrial estate have closed in four years. Trade Routes: Hairatan railway is expanding Afghanistan’s links to Central Asian and overseas markets. The new Wakhan road reaches China’s border, but commercial traffic awaits Beijing’s approval. Household Economy: WFP says unskilled workers’ purchasing power has fallen 25% year-on-year as workdays shrink and food prices rise. Farm Income: Fifty mushroom farms in Kandahar are creating new income opportunities, with one farmer reporting monthly earnings of about 12,000 afghanis.

Trade Deals: Afghan, Uzbek and Indian businesses signed nearly $400 million in trade and investment agreements at a Kabul exhibition. Afghanistan and Iran also agreed on 28 trade deals valued at about $451.8 million. Transport Links: Hairatan’s rail port is expanding its role as a gateway for goods from China and Central Asia, connecting Afghan traders to wider markets and supporting local jobs. Afghanistan is also exploring a China-to-Persian-Gulf trade route. Small Businesses: Women entrepreneurs in Kabul say higher input costs, weaker consumer demand and Taliban restrictions are squeezing sales. One business owner said a kilogram of raw material had risen from 500 to 1,200 Afghanis; entrepreneurs are seeking affordable supplies, financing and access to exhibitions.

Trade Deals: Afghan firms signed nearly $400 million in agreements with Uzbek and Indian businesses, while 11 Afghanistan-Iran MoUs are valued at $451.8 million. Both deals were announced alongside Kabul’s trade fair, which drew 323 companies and about 700 stalls. Regional Connectivity: Afghanistan has opened a road through the Wakhan Corridor with the aim of creating a China-to-Persian Gulf trade route, though experts say it is still far from operational. Investment Links: Iran has allocated 110 hectares at Chabahar port for Afghan investment, as officials discuss expanding trade, transit and energy cooperation.

Investment and Trade: Afghan businesses and partners from Central Asia and India signed 22 MoUs in Kabul worth more than $400 million, including a $103 million deal. Household Costs: Kabul residents report LPG prices of 65–71 Afghanis per kilogram, with uneven rates and weak market oversight adding to pressure on family budgets. Export Markets: An Afghan-Austrian partnership aims to expand carpet sales in Europe, while Afghan emeralds are drawing interest from global buyers. Transit Links: Iran has allocated 110 hectares at Chabahar Port for Afghan investment, offering a potential route to the sea; the two countries are also seeking to expand trade through western border crossings.

Trade and Transit: Afghanistan and Iran signed 28 trade agreements as officials moved to expand cross-border commerce and resolve customs issues. Iran has also allocated more than 110 hectares at Chabahar port for Afghan investment, offering businesses a potential route to sea access. Investment: Afghan authorities approved infrastructure projects worth $107 million, while a Russian company plans to invest in agriculture and fertilizer production. Exports: Afghan emeralds are attracting global buyers, though miners still struggle with outdated tools; handmade carpets are also being promoted to lift exports.