Uzbekistan and Afghanistan Target $5 Billion Trade Deal Amid Regional Economic Shift

Taliban government says it has discussed increasing bilateral trade with Uzbek authorities, and both countries are committed to raising their mutual trade to “five billion dollars.”

Uzbek Deputy Prime Minister Jamshid Khodjaev said that Uzbekistan and Afghanistan have agreed to significantly expand their economic relations and increase bilateral trade to $5 billion.

Khodjaev announced this goal after speaking via video conference with the Taliban government’s Minister of Industry and Commerce, Nooruddin Azizi. During the meeting, both sides reviewed existing cooperation and discussed plans for future development.

“In just five years, mutual trade has increased 2.5 times — from $653 million in 2021 to $1.7 billion in 2025. Our current goal is to raise this level to $5 billion,” Khodjaev said.

The two officials also discussed practical steps to further deepen trade and economic cooperation, including preparations for an upcoming visit by an Afghan delegation to Uzbekistan.

In a video statement, Nooruddin Azizi said that Afghanistan’s trade volume with Uzbekistan has currently reached $1 billion annually, and the total trade volume has exceeded $1.5 billion.

There are also plans to hold a business forum in Kabul after Ramadan and to prepare a detailed roadmap identifying priority sectors for cooperation.

During the talks, emphasis was placed on the need to swiftly implement a preferential trade agreement, and both countries agreed to put the agreement into effect as soon as possible. Officials also discussed ways to promote joint investment and industrial projects.

Key areas of cooperation include:

Processing of agricultural products

Construction materials

Textile industry

Strengthening food security

They also discussed essential trade facilitation requirements such as exhibition halls, logistics centers, and the construction of warehouses to improve the marketing and distribution of goods.

Despite regional challenges, trade between Uzbekistan and Afghanistan has steadily increased over the past five years — and now both governments are seeking to accelerate this process through a structured economic partnership and closer regional integration.

Tehran has approved a plan for a joint international free trade zone with Afghanistan and China.

According to a source within the Taliban government in Afghanistan, Morteza Zakarian, head of economic affairs in Iran’s southern Khorasan province, said that an international trade and industrial free zone will be established in the province between Iran, Afghanistan, and China.

The project offers a strategic opportunity to increase exports, create employment opportunities for residents of border areas, and strengthen regional economic ties.

“Pars Today” quoted Zakarian as saying that Afghan and Chinese partners have expressed willingness to provide financial support and even build a special industrial city.

Iranian media reported that Iranian President Masoud Pezeshkian has approved the proposal, which also aims to support technology transfer and strengthen economic institutions.

Zakarian emphasized that the combined population, geographic locations, and production capacities of Iran, Afghanistan, and China provide complementary resources that could contribute to the development of a strong global economic zone.

Decline in Pakistani Exports to Afghanistan

This expansion of Afghanistan’s economic ties with Uzbekistan and Iran comes at a time when Pakistani exports to Afghanistan have declined by nearly 59 percent due to frozen trade.

Reports indicate a sharp drop in Pakistan’s exports to Afghanistan during the first seven months of the current fiscal year, reflecting the deepening trade stalemate and political crisis.

Official data from Pakistan’s central bank shows that the value of exports fell from $550 million during the same period last year to approximately $228 million.

The decline in exports from July to January is attributed to the suspension of trade between the two countries since early October, which has been cited as a major reason for the sharp decrease in Pakistan’s regional exports. The trade disruption has severely limited official cross-border exchange activities.

In recent months, relations between Islamabad and Kabul have been strained due to tensions along the Durand Line and mutual accusations over security concerns, further complicating efforts to restore stable economic interaction.

The Taliban government in Afghanistan has advised traders and importers to explore alternative trade routes and diversify supply sources to avoid shortages in local markets. They have stressed reducing reliance on a single transportation route and encouraged businesses to seek regional partnerships to ensure a steady supply of essential goods.