Afghanistan Times
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KABUL – Trade relations between Afghanistan and Uzbekistan witnessed an extraordinary sixfold increase, reaching $266 million in 2023. This surge, despite the challenges posed by the Taliban’s dominance, signifies a burgeoning engagement between the war-stricken nation and its northern neighbors.
The trade dynamics revealed a notable exchange, with Afghanistan importing electricity, flour, and oil, while exporting dried fruits, carpets, and sesame. A representative from the Taliban’s Industry and Trade Ministry in Kabul disclosed that imports from Uzbekistan totaled $239 million, with $27 million worth of goods flowing in the opposite direction.
A pivotal development contributing to this trend is the proposal for a trans-Afghan railroad connecting Uzbekistan and Pakistan. The project aims to slash transport costs by 40% and boost cargo capacity to an impressive 15 million tons by 2030. Plans include upgrading existing rail infrastructure and streamlining customs procedures to further facilitate regional trade and connectivity between Afghanistan, Pakistan, and Uzbekistan.
The envisioned railroad route is set to traverse from Termez in Uzbekistan through Mazar-i-Sharif and Logar in Afghanistan, culminating at the Kharlachi border crossing in Pakistan. Officials from the three nations convened in Islamabad, signing a protocol outlining a roadmap for the project. This roadmap encompasses technical feasibility studies and explores funding options.
Uzbekistan estimates a 40% reduction in transport costs for goods traveling to and from Pakistan upon the completion of the railroad, with an estimated project cost of $6 billion. The ambitious plan aims to handle up to 15 million tons of cargo along the route by 2030.
In the short term, there are plans to upgrade a 75-kilometer segment of existing railway from Khairaton in south Uzbekistan to Mazar-i-Sharif in Afghanistan. Talks emphasized the urgency of initiating the upgrade, with officials recognizing the immediate impact on trade dynamics.
Furthermore, in a significant move towards regional cooperation, trade officials from Afghanistan, Pakistan, and Uzbekistan convened in Islamabad for the maiden Trilateral Meeting on Trade and Transit in November. This session focused on addressing trade barriers and streamlining customs procedures, signaling a positive step towards enhancing regional connectivity and fostering cooperation.
The unfolding developments underscore a resilient trajectory in regional trade, showcasing the potential for economic growth and collaboration in the face of complex geopolitical realities.
