AGP Executive Report

Afghanistan Flood Response: Fresh flash floods hit Nuristan’s Mandol district, injuring at least 30 people and damaging farmland, roads, irrigation canals and water mills, as earlier Parun floods already left dozens dead and missing. Water & Agriculture Pressure: Separate reporting from Farah’s Bala Buluk points to worsening drought and falling groundwater, with karez systems and springs drying up and families rationing scarce drinking water. Trade & Connectivity: Afghanistan’s push for deeper trade ties continues, including discussions on expanding railway cooperation with Uzbekistan for the Trans-Afghan route and efforts to improve transit trade links. Energy & Power Planning: Taliban-linked energy procurement was reported for a 10,000 MW power plan, while UN reporting says most Afghan cities still face electricity shortages. Industry & Jobs: A new international-standard textile factory is set to begin operations in Kabul, adding to momentum in Afghanistan’s carpet and animal-product export sectors. Security & Cross-Border Risks: Pakistan again urged scrutiny of Taliban terror patronage, while regional officials stressed maritime security and zero tolerance for terrorism at the ASEAN Regional Forum.

Telecom & Digital Economy: Herat’s fiber optic rollout is about 50% complete, with officials saying it should cover all areas of Herat city within roughly 18 months—expected to cut business costs and boost e-commerce, online education, and digital services. Trade & Transport Infrastructure: Afghanistan and Uzbekistan renewed talks to expand railway cooperation, including feasibility work for the Trans-Afghan railway and document handovers for the Herat–Mazar-e-Sharif line, plus plans for logistics facilities and more freight capacity along the Hairatan corridor. Humanitarian & Local Markets: Deadly flash floods in Nuristan (Parun) have killed at least 23 people, injured dozens, and left over 100 missing; OCHA reports damage to homes, markets, bridges, roads, and irrigation, with about 1,000 families facing safe water shortages. Regional Aid & Supply Chains: India delivered food and tents to flood-hit Nuristan communities via Kabul’s Taliban-run disaster authority, while UN officials urged partners to scale up life-saving assistance. Energy & Industry Link: Taliban authorities say Azizi Energy has procured equipment for a 10,000 MW power plan, a move that could affect future electricity reliability for industry and services.

Afghanistan Flood Response: OCHA reports deadly flash floods in Nuristan’s Parun (capital) killed 23, injured 15, and left people missing; damage includes homes, markets, bridges, roads, and a water supply network affecting about 1,000 families. Carpet Exports: Herat’s handwoven carpets—over 10,000 square meters valued at $103,000—have been exported to Germany this year, highlighting the sector’s role in rural incomes. Energy & Power Access: A UN update says most Afghan cities are facing electricity shortages, underscoring ongoing pressure on urban services and industry operations. Transit & Trade Corridors: Pakistan and Uzbekistan are shifting some transit trade through a China-linked route via Pakistan’s Sost Dry Port, reflecting how regional security is reshaping Afghanistan-adjacent logistics. Regional Shipping Risk: With US-Iran strikes near Chabahar, India says the Shahid Beheshti terminal is unharmed, but analysts warn continued military activity could raise shipping and investment risks for trade routes tied to Afghanistan and Central Asia.

Disaster Response: India delivered food items and family tents to Afghanistan’s National Disaster Management Authority after flash floods in Nuristan’s Parun killed at least 20 people, injured about 80, and left more than 100 missing, with homes, agricultural land and shops also damaged. Energy & Power Projects: The Taliban said Azizi Energy has procured technical equipment for a planned 10,000 MW power program, with shipments to begin soon, while feasibility work and power purchase agreements were reported for multiple solar projects and discussions continued for coal plants and grid links. Trade & Regional Routes: Afghanistan’s trade is shifting toward Iran and Uzbekistan amid disruptions with Pakistan, with Iran reported at about $3.3B annually and Uzbekistan at about $1.7B, as chambers push for stronger commercial ties and easier business access. Local Infrastructure: In Khost’s Qalandar district, a community council started building a 17-kilometer road funded by residents, aiming to cut travel distance from 60 km to 17 km, but locals warn bridges and culverts are urgently needed to protect the investment. Agriculture Support: FAO says Afghan farmers continue facing drought, water shortages, pests and economic pressures, and it trained technical staff on emergency crop-livelihood standards to improve the quality and coordination of assistance. Household Costs: Rising LPG and fuel prices are squeezing Afghan households, with the Taliban-run Afghan Gas Enterprise inspecting outlets and setting a fixed LPG price at 70 Afghanis per kilogram.

Floods & Disaster Response: At least 20 people were killed and 80+ injured in flash floods in Parun, Nuristan, with 100+ still missing as Taliban disaster teams search damaged homes, farms, and shops. Agriculture Resilience: FAO says Afghan farmers are still hit by drought, water shortages, pests, and economic pressure, urging better emergency crop support and noting it trained 19 technical staff on SEADS standards. Mining Contracts: Afghanistan’s Ministry of Mines and Petroleum reports 109 mining extraction contracts worth over AFN 10.2 billion signed with domestic firms, alongside surveys of 272 mining sites across 23 provinces. Electricity Shortages: UN-Habitat warns most Afghan cities face power shortages, pushing the case for renewable investment, especially solar, to keep businesses running and students studying at night. Trade & Investment Diplomacy: Taliban leader Hibatullah Akhundzada reportedly declined a Kandahar meeting request from a World Bank/ADB-linked delegation, while separate coverage highlights Afghanistan’s push for deeper trade ties with regional partners. Security & Industry Link: A new anti-Taliban group, Sepahiyan-e Mihan, briefly seized Yaftali Sufla district in Badakhshan, raising fresh concerns for stability in a strategically sensitive area.

Mining & Contracts: Afghanistan’s Ministry of Mines and Petroleum says it signed 109 mining extraction contracts worth over AFN 10.2 billion with domestic firms in solar year 1404, covering salt, lead, zinc, gypsum and more, while surveying 272 mining sites across 23 provinces. Electricity & Cities: UN-Habitat warns most Afghan cities are facing electricity shortages, pushing households into outages that also disrupt study and business. Disaster Impact on Industry & Agriculture: Flash floods in Nuristan have killed at least 20 people and left over 100 missing, with damage reported to homes, agricultural land and public facilities—another blow to local production and livelihoods. Mining Licensing Friction: In Panjshir’s Paryan district, gold miners complain the Taliban Directorate of Mines and Petroleum halted operations and confiscated machinery over licensing issues, asking for a clear, legal path to resume extraction. Energy & Resilience: UN-Habitat highlights renewable energy investment—especially solar—as key to building more resilient, sustainable Afghan cities.

Electricity & Cities: UN-Habitat says most Afghan cities are facing electricity shortages, with outages hitting households, businesses, and students; it urges more renewable power investment, especially solar, including solar-backed clinics. Trade Disruption: Afghanistan’s Chamber of Commerce (ACCI) warns that cargo transit to Afghanistan has been suspended through Chabahar and Bandar Abbas after recent attacks, while Jebel Ali shipments have also stalled—raising fears of supply gaps and higher import costs. Transit Trade Collapse: Afghanistan-Pakistan transit trade has plunged to about USD 367 million in FY26 (from roughly USD 5 billion in FY21), with Kabul shifting routes and Pakistan border restrictions compounding the drop. India-Afghanistan Business Push: ACCI and the Indian ambassador discussed expanding trade and investment ties, focusing on easing procedures and business visas; India is also leaning on Chabahar connectivity. Women’s Livelihoods: In Balkh, women report rising depression and anxiety as Taliban restrictions keep them out of secondary education and most jobs, with counseling services still scarce. Regional Industry & Logistics Context: Pakistan plans to host the South Asian Federation (SAF) Games in early 2027 as part of a SAARC revival push, aiming to boost regional connectivity and trade.

Afghanistan-India Trade Push: Kabul’s business lobby is urging easier procedures, fewer administrative hurdles and faster business visas to deepen trade and investment ties with India, as transit trade with Pakistan keeps sliding and India leans on Iran’s Chabahar route. Transit & Logistics Pressure: Reports say Afghanistan-Pakistan transit trade plunged to about $367m in FY26 from nearly $5bn in FY21, with Kabul shifting routes toward Iran and Central Asia—raising fresh uncertainty for import-dependent industries. Power Shortage in Kabul: Residents report electricity only 3–4 hours overnight, with 24-hour supply largely limited to Taliban-linked households, worsening summer heat impacts on daily life and small businesses. Pharma Cooperation: Afghan and Uzbek officials discussed expanding cooperation in pharmaceuticals, medical equipment, health products and food, including technical knowledge transfer and joint programs. Industry & Jobs: A Kabul textile factory project is nearing completion (about 90%), aiming to start fabric production soon and create 12,000 direct jobs across shifts. Counter-Narcotics: Farah police seized over two tonnes of drug-manufacturing materials and detained two suspects, signaling continued enforcement against illicit production. Water & Flood Risk: Pakistan’s monsoon warnings highlight rising river flows and possible urban flooding, a reminder of how climate shocks can disrupt regional supply chains.

Afghanistan–Uzbek Health Trade: Afghan and Uzbek officials met in Uzbekistan to expand cooperation in pharmaceuticals, medical equipment, health products and food, including technical knowledge transfer and joint programs. Textile Jobs Push: A Kabul textile factory is nearing completion and says it will start fabric production soon, aiming to create 12,000 direct jobs across three shifts. Trade & Visas with India: Afghanistan’s chamber of commerce urged easier business procedures and faster business visas to deepen trade and investment ties with India as transit with Pakistan keeps shrinking. Transit Trade Collapse: Afghanistan–Pakistan transit trade reportedly plunged to $367m in FY26 (from about $5b in FY21), with Kabul increasingly rerouting via Iran. Counter-Narcotics Drive: Farah police seized over 2 tonnes of materials linked to illicit drug manufacturing and detained two suspects. Land & Rangeland Mapping: Samangan authorities say they identified 741,600 hectares of rangeland, while noting some land has already been converted to farming and housing. Industry Under Pressure: Herat industrialists warn that US strikes affecting Iranian ports could strand Afghan imports and delay customs clearance. Poppy Ban Messaging: Afghanistan’s foreign ministry says the poppy cultivation ban is improving public health, security and international standing. Agriculture Market Strain: Samangan melon growers report falling prices and weak cold-storage and export options are squeezing incomes. Regional Shockwaves: US–Iran escalation is again raising uncertainty for Gulf shipping, with Chabahar-related concerns spilling into Afghanistan’s connectivity plans.

Port & Trade Shock: After US airstrikes hit Iran’s Bandar Abbas and Chabahar, Afghan importers in Herat warn raw materials are stuck at ports and ask for faster customs clearance and alternative corridors. Chabahar Status Check: India’s MEA says the Chabahar terminal itself was not damaged, despite reports of strikes near a surveillance tower. Industry Jobs Push: A slipper factory in Baghlan opened with a $200,000 investment, creating direct and indirect work for about 70 people and urging land and tax support for local investors. Textiles Expansion: Kabul’s new international-standard textile factory is nearing completion and aims to start fabric production soon, with thousands of jobs expected. Carpet Exports: Afghanistan’s carpet sector employs nearly one million people and has exported over 760,000 square meters this year, with demand rising abroad. Agriculture Pressure: Mango growers report water and trade-route disruptions hurting output and exports, while Samangan melon sellers face falling prices despite higher yields. Water Stress: Herat residents say groundwater levels are dropping fast, forcing deeper drilling and worsening both irrigation and drinking-water access. Regional Trade Talks: ACCI and India’s embassy discussed easing barriers, improving logistics, and boosting exports and business visas.

Textiles & Jobs: An Afghan investor says a $80m textile factory in Kabul is 90% complete and could start fabric production within two months, aiming for 12,000 direct jobs and 50,000 sq meters of fabric per hour. Trade Facilitation: The Afghanistan Chamber of Commerce and Investment met India’s ambassador to push export growth, better logistics, fewer trade barriers, and easier business visas, with plans for joint exhibitions and delegations. Carpet Exports & Employment: Afghanistan’s carpet sector employs nearly one million people and has exported over 760,000 sq meters this year, with most output shipped abroad and more sales under Afghan branding. Animal Products Exports: Afghanistan exported 1,280+ tonnes of animal products in Q1, nearly sevenfold year-on-year, but exporters still call for more leather-processing capacity to add value. Energy Costs: Fuel prices in Kabul, Kandahar, Herat and Badghis reportedly rose up to 25% in days, squeezing transport and household costs. Water Stress in Herat: Herat residents report groundwater levels have dropped sharply, forcing deeper well drilling and worsening drinking-water shortages. Healthcare Investment: A 10-bed ICU opened in Khost Provincial Hospital with modern equipment, aiming to reduce the need for patients to travel to Kabul. Regional Shipping Pressure: US-Iran strikes continue to target ports and infrastructure around the Strait of Hormuz, raising risks for regional logistics routes tied to Chabahar.

Healthcare & Construction: A 10-bed ICU was inaugurated at Khost Provincial Hospital after a nearly 40 million afghani investment, including about 24 million afghanis for modern monitoring and ventilation equipment—locals say it will reduce the need for critically ill patients to travel to Kabul. Agri-Exports & Value Chains: Herat reports animal hides and intestines exports of 1,280+ metric tons worth $1.123m in the first quarter, up nearly sevenfold year-on-year; exporters blame low prices on limited storage and the lack of leather processing factories. Energy & Cost of Living: Fuel prices in Kabul are rising again, with residents citing higher gasoline, diesel, and LPG costs and reduced supplies as drivers—municipal price lists show LPG around mid-70s afghanis per kilogram, while markets report faster increases. Regional Trade & Transit: Pakistan and Uzbekistan are pushing a trade roadmap that could cut transit times and costs, with the trilateral Uzbekistan-Afghanistan-Pakistan rail link highlighted as key to faster movement. Climate Risk: Experts warn El Niño is strengthening and could bring heat, floods, and droughts, with Afghanistan among the most exposed countries for food and water shocks. Shipping & Infrastructure Stress: US-Iran strikes continue to target bridges, ports, and infrastructure around the Strait of Hormuz, raising risks for regional logistics and energy flows that Afghanistan’s trade corridors depend on.

US-Iran Infrastructure War: The U.S. expanded airstrikes on Iran, hitting bridges and electrical sites and collapsing a tower at Chabahar port, while Iran retaliated with missile attacks across the region, including Qatar and Kuwait. Chabahar Trade Shock for Afghanistan: Chabahar—key for landlocked Afghanistan’s access to sea routes—took renewed damage as the U.S. targeted port infrastructure tied to commercial traffic. Power and Water Strain: Kuwait reported damage to a power and water desalination plant, raising risks for water supply and industrial stability in the Gulf. Regional Logistics Pressure: With Hormuz tensions flaring, shipping and transit corridors face fresh disruption, directly affecting energy and freight costs that Afghanistan’s importers rely on. El Niño Food Security Warning: Climate experts warn El Niño could intensify heat, floods, and droughts, with Afghanistan among the most exposed, threatening agriculture and household nutrition. Afghanistan Connectivity Diplomacy: Iran, Tajikistan and Kabul agreed on a new road transit corridor through Afghanistan, aiming to strengthen overland trade despite regional shocks. Local Industry & Skills: A graphic design program in Afghanistan-linked military-to-civilian pathways highlights growing demand for practical creative skills and employable portfolios.

Afghanistan–Humanitarian Pressure: Russia warns Afghanistan’s humanitarian situation is worsening, citing high infant mortality and polio risks while urging release of frozen assets and depoliticized aid. Afghan Security & Drugs: Counter-narcotics police in Nimroz seized hundreds of kilograms of opium and meth materials and arrested seven smugglers; in Badakhshan, 730 kg of opium was publicly burned. Afghan Infrastructure & Services: Taliban announced a 50-bed public hospital construction in Khost, while UN-Habitat says millions still lack safe drinking water access. Regional Trade Connectivity: Iran, Tajikistan and the Taliban agreed on a new transit corridor through Afghanistan, adding momentum to overland logistics. Industry & Trade Signals: Afghanistan’s domestic exports reportedly topped $45M in the first three months of 1405, alongside reports of trade fairs and local product promotion. Global Shipping Shock (Afghanistan-relevant): Renewed Strait of Hormuz tensions keep global shipping in “crisis mode,” raising costs and rerouting risks that can ripple into Afghanistan’s trade routes.

Counter-Narcotics Crackdown: Afghan counter-narcotics police in Nimroz seized hundreds of kilograms of illicit drugs, including 84 kg of opium and 130 kg of methamphetamine, and arrested seven smugglers, while earlier operations also burned 730 kg of opium in Badakhshan. Regional Trade & Transport: Iran, Tajikistan and the Taliban agreed to set up a new road transit corridor through Afghanistan, with a first pilot shipment expected within a month to test customs and border procedures. Healthcare Infrastructure: Construction has started on a new 50-bed district hospital in Khost’s Tani district (50 million afghanis), with completion targeted in 18 months and plans for additional specialized services. Mining & Supply Security: Pakistan pledged extra security for the Chinese-run Saindak copper and gold mine in Balochistan after warnings that disrupted logistics could halt production; the operator denied any shutdown risk. UN Leadership: Rabab Fatima, a veteran Bangladeshi diplomat, was appointed to lead UNAMA, adding another diplomatic variable to Afghanistan’s already crowded regional influence contest. Afghan Industry Exports: Afghanistan’s domestic exports reportedly topped $45M in the first three months of 1405, signaling continued momentum for local trade.

Afghanistan Trade & Industry: Afghanistan’s domestic exports topped $45M in the first three months of solar year 1405, with 53,000 metric tons shipped via Islam Qala border and Torghundi port—covering animal products, fruits, carpets, medicinal plants, and minerals, and boosted by rising demand for Herat saffron and industrial park output. Healthcare Infrastructure: The Taliban announced construction of a 50-bed public hospital in Khost’s Tani district, funded with nearly 50 million Afghanis and planned to finish in 18 months, aiming to expand services from surgery and obstetrics to pediatrics amid ongoing sector strain. Public Health & Trade Risks: Reports say border closures have driven increased smuggling of Pakistani medicines into Afghanistan, pushing up prices and disrupting domestic producers, with some products allegedly lacking proper licensing. Mining & Security: Pakistan pledged more security for the Chinese-run Saindak copper and gold mine in Balochistan after the operator warned production could become unsustainable within a month due to militant violence disrupting logistics. Regional Connectivity: US strikes and sanctions tied to Iran are said to be squeezing India’s Central Asia access plans, putting pressure on Chabahar and related corridor efforts that also matter for Afghanistan-linked trade routes.