Uzbekistan strengthens economic cooperation with Afghanistan: investment, infrastructure and transit

The economic vector of Uzbekistan is once again turned to the south. As part of an international meeting held in Khankendi on July 3, President Shavkat Mirziyoyev held talks with Deputy Prime Minister for Economic Affairs of the Islamic Emirate of Afghanistan, Mullah Abdul Ghani Baradar. The talks demonstrated the clear intention of both sides to develop pragmatic, growth-oriented cooperation in key economic sectors.

Forming a strategic economic partnership

At the beginning of the dialogue, the Afghan side expressed gratitude for the constructive approach of Uzbekistan in international policy towards Afghanistan, noting its role in maintaining balance in the regional agenda. Deputy Prime Minister Baradar stressed that the current trade turnover between Kabul and Tashkent has already exceeded the $1 billion mark — an increase of 60% compared to previous periods. In the future, according to him, this figure can be at least doubled.

Transit potential and access to foreign markets

One of the central accents was placed on expanding the export opportunities of Afghanistan. Baradar called for using Uzbekistan's infrastructure capabilities to bring Afghan products to the markets of Central Asian countries and Russia. Among the priority areas of cooperation are logistics, services, development of border areas and joint work in the field of subsurface use.

Tashkent's response: Investing in infrastructure and energy

President Mirziyoyev confirmed Uzbekistan's readiness to invest resources in key sectors of the Afghan economy. Among the priority projects are the construction of the strategic Mazar-I — Sharif — Herat-Kandahar railway, the launch of textile and cement industries, the modernization of the oil refining industry, the development of salt processing and the introduction of digital solutions in public administration.

In the energy sector, Uzbekistan intends to increase electricity supplies to Afghanistan after the commissioning of a new 500 kilowatt transmission line. This will increase the energy security of the southern neighbor and ensure the smooth operation of industrial facilities, some of which will be implemented with the support of Uzbek investors.

Creating conditions for foreign trade and bank settlements

Special attention was paid to facilitating conditions for foreign economic activity. Mirziyoyev instructed relevant departments to work out mechanisms to promote the export of Afghan agricultural products and ensure the functioning of the International Trade Center in Termez as the main hub of cross-border trade. It is also planned to optimize bank settlements, which can reduce transaction barriers and simplify business access to financial services.

Institutional control and regular monitoring

To ensure a systematic approach to the implementation of the agreements, a joint working group was established under the leadership of Baradar and the Prime Minister of Uzbekistan. Meetings are planned to be held quarterly, in order to monitor the implementation of agreements and timely adjust strategic directions.

Uzbekistan demonstrates a mature approach to regional policy, building relations with neighboring Afghanistan on the basis of mutual benefit, infrastructure connectivity and economic pragmatism.