AGP Executive Report

Energy & Industry: Afghan authorities inaugurated a 41 million afghani power supply network in Paktia’s Gardez, aiming to bring reliable electricity to 1,000+ households and local businesses—an important step for production and services in a country still dependent on imported power. Agri-Exports: Dried fruit traders in Zabul say export bottlenecks are hurting them badly, citing goods turned back from China and lack of reliable routes to India, Pakistan and Kazakhstan; the provincial Industry and Commerce office says it is pushing trade links, including with Uzbekistan. Trade & Logistics: Kabul cut air cargo fees at international airports to boost exports, while Afghanistan also reported rail freight growth of 704,000+ tonnes in August. Mining & Energy Projects: The TAPI pipeline is reported to be moving closer to first gas sales in Afghanistan, and a separate report says work on a Herat TAPI project is set to finish within two months. Business Climate: A feature highlights signs of Afghanistan’s economic recovery, with women-led dining businesses expanding despite sanctions, banking limits and weak infrastructure.

Afghanistan Economic Recovery: Afghanistan is showing signs of recovery after decades of conflict, driven by renewed focus on investment, mining, trade and infrastructure—though frozen assets, weak markets and sanctions still limit sustainable growth. Kabul Air Cargo Boost: Kabul has cut air cargo fees at international airports to make exports cheaper and support trade. Trade & Industry Links: Afghanistan and Russia discussed expanding economic cooperation, including a proposed special economic zone at Hairatan port for storage, processing and packaging of agricultural products, plus plans for vehicle repair workshops and petroleum imports. Women’s Exports: Herat Women’s Chamber reports nearly 100 tons of women’s handicrafts worth $175,000 exported in five months, with products reaching the US, Europe, Turkey and nearby markets. Media Freedom: The Afghanistan Journalists Center urged the Taliban to reopen the Lapis Media Office in Kabul after equipment was confiscated and operations were shut. Infrastructure & Energy: TAPI pipeline progress continues, with reports pointing to movement toward first gas sales in Afghanistan.

Women’s Trade Boost: Herat Women’s Chamber of Commerce and Industries says women’s handicraft exports hit about $175,000 in five months (nearly 100 tons), with sales reaching the US, Europe, Turkey and nearby markets—often via cargo services—while entrepreneurs ask authorities for better export facilities. Fuel Costs in Kabul: Petrol in Kabul climbed from 80 to 87 afghani per liter and diesel from 75 to 79 over the week, adding pressure on drivers as prices have risen for more than two months. Rail Connectivity Push: Afghanistan’s Ministry of Public Works is running survey and design for 1,537 km of new railway lines across major routes (Torghundi–Herat, Herat–Kandahar, Kandahar–Spin Boldak, Kabul–Kandahar, Andkhoy–Sheberghan), with financing talks involving banks, countries and investors. Regional Connectivity Talks: Kyrgyzstan backs India-linked corridors like Chabahar and the INSTC, arguing they cut transit time and costs for goods to Central Asia and Afghanistan. Food Security Support: The EU provided €15m to WFP to strengthen climate resilience and local food systems in Afghanistan, including support for women and youth and school feeding.

Afghanistan–US Relations: Taliban spokesman Zabihullah Mujahid says Afghanistan is “undoubtedly” better off after the US withdrawal, while Kabul seeks normal ties including reopening a US embassy and an Afghan mission in Washington. Humanitarian & Food Systems: The EU provided €15m to WFP to strengthen climate resilience and local food systems in Afghanistan, including support for school feeding and livelihoods for women and youth. Energy & Regional Trade: TAPI is moving toward real gas sales as Turkmenistan prepares to supply Afghanistan’s Herat province; the Herat section is expected to be commissioned within two months, though Pakistan/India timelines remain unclear. Disaster Response: IOM supported 98 earthquake-affected families in Kunar’s Nurgal district with phased home reconstruction help ahead of winter. Security & Detention: Reports allege overcrowding and poor conditions at Herat Central Prison, with delays in food distribution and difficulty accessing water. Industry & Infrastructure: Afghanistan is reported to have approved nearly $100m in development projects, including hospitals, dams, and power infrastructure construction.

Afghanistan Trade & Logistics: Afghanistan’s Taliban-run Ministry of Transport and Civil Aviation cut air cargo service fees at international airports, slashing the aviation security fee from $100 to $10 per ton and ground handling from $96 to $40 per ton, with extra discounts for scheduled and special cargo flights—aimed at lowering export costs and boosting high-value shipments. Regional Trade Connectivity: The ADB approved a $400 million BUILD financing facility to modernize border crossing points across the CAREC region, targeting faster, cheaper movement of people and goods and reducing bottlenecks that raise logistics costs. Cross-Border Labor Pressure: Afghans deported from Iran and Pakistan say they face unemployment and poverty after returning, with the Afghan Red Crescent Society in Herat distributing cash to families. Security & Industry Risk: Pakistan says it will only sustain dialogue with Kabul if Afghanistan takes “tangible and verifiable” action against militants, warning Afghan soil must not be used for attacks—an issue that can directly disrupt trade corridors.

Air Cargo & Exports: Afghanistan’s Ministry of Transport and Civil Aviation cut air cargo fees at international airports—dropping the aviation security fee from $100 to $10 per ton and ground handling from $96 to $40—plus discounts for scheduled and special cargo flights, aiming to lower transport costs and boost exports. Trade & Industry at Hairatan: Afghan and Russian officials discussed creating a special economic zone at Hairatan Port in Balkh to store, process, and package agricultural products, alongside plans for workshops and vehicle repair, with a focus on expanding fruit exports. Energy Infrastructure (TAPI): Herat’s governor says the Turkmenistan–Afghanistan–Pakistan–India (TAPI) gas pipeline work on the Herat section is set to finish and enter operation within two months, supporting jobs and regional development. Telecom Controls: The Taliban’s Fibre Optic Development Directorate issued a directive halting fibre-optic network expansion, rerouting, new routes, and related maintenance, with telecom firms told to stop work and regulators asked to monitor compliance. Mining Safety: A toxic gas incident in Balochistan’s Duki coal mine killed at least three miners, renewing calls for stronger safety measures, protective facilities, and accountability. Security & Logistics: Afghan police seized 218 kg of narcotics in Ghor province, including opium-type drugs and fentanyl, arresting two smugglers.

Afghanistan-Industry Update: The Afghanistan Chamber of Commerce and Investment (ACCI) says Afghanistan is now self-sufficient in producing more than 10 construction materials, including rebar, steel beams, industrial paints, stone facings, doors/windows, electrical cables, mosaic tiles, bricks and gypsum—while urging investors to expand capacity and ensure quality standards. Trade & Investment: Kuwait is exploring deeper economic ties with Afghanistan after meetings between Afghan officials and Al-Sayer Group’s CEO, with interest in exporting Afghan fresh and dried fruits and attracting Kuwaiti know-how, particularly from the oil and gas sector. Regional Connectivity: JICA’s Afghanistan representative Sota Tosaka highlights how Uzbekistan is drawing Afghanistan closer to Central Asian markets, pointing to progress around Termez and cross-border initiatives that support trade and transport links. Humanitarian & Supply Chains: UNICEF warns that 1 million Afghan children face deadly malnutrition, underscoring pressure on food and health supply systems. Private Sector & Media: Afghanistan’s Cricket Board awarded India-Afghanistan T20I commercial and broadcast rights to Pakistan-based TransGroup, alongside partners for clothing, production and streaming—another sign of how Afghan sports business is moving through regional networks.

Afghanistan–Kuwait Trade Talks: A major Kuwaiti firm, Al-Sayer Group, says it wants to invest in Afghanistan and export Afghan fresh and dried fruits to Kuwait, after meetings with Afghanistan’s Industry and Commerce and Foreign Affairs ministries. Construction Materials Push: The Afghanistan Chamber of Commerce and Investment says the private sector has reached self-sufficiency in producing 10 construction materials, including rebar, steel beams, gypsum, bricks, tiles, doors/windows and electrical cables—while builders stress quality standards must match imports. UNICEF Humanitarian Logistics: UNICEF thanked Pakistan Customs for seamless facilitation of humanitarian cargo to Afghanistan, moving 355 containers via the land route through Torkham. Afghan Malnutrition Alarm: UNICEF warns about 1 million Afghan children face life-threatening severe acute malnutrition as poverty, disease and shrinking funding overwhelm health services. Regional Connectivity Funding: The ADB plans up to $400m for modernization of border crossing points across CAREC countries, including Afghanistan, aiming to cut freight delays and costs through upgraded infrastructure and faster customs procedures.

Afghanistan Industry & Trade: Afghanistan’s first jewelry industry exhibition opened in Kabul, aiming to boost domestic production, train designers with advanced equipment, and expand regional and global markets for Afghan-made pieces. Logistics & Humanitarian Supply Chains: UNICEF thanked Pakistan Customs for seamless facilitation of humanitarian cargo to Afghanistan, with transit of 355 containers via the Torkham border route. Industry & Infrastructure Finance: Afghanistan approved nearly $100 million in strategic infrastructure projects, including hospitals, dams, and power-related construction, signaling continued focus on rebuilding core services and utilities. Regional Economic Pressure: A foreign policy analyst warned that new US sanctions on Iran are unlikely to change Tehran’s behavior, even as Washington expands secondary sanctions that could raise risks for regional businesses trading with Iran. Supply & Food Prices: The US announced a temporary 90-day tariff reprieve on imported beef to ease rising prices amid cattle supply shortages, a reminder of how trade policy can quickly ripple into food supply chains.

Afghanistan Industry & Trade: Kabul kicked off a three-day gold and jewelry exhibition, with the Industry and Commerce minister highlighting domestic resources and saying about 100,000 people work in the sector; officials also cited 1,200 gold-melting factories operating nationwide. Infrastructure & Power: Afghanistan approved nearly $100 million in development projects, including hospitals, dams, and power-infrastructure construction—another push to keep essential services moving. Mining & Security: Fighting in Badakhshan around a local Taliban commander tied to gold mining ended with his surrender, underscoring how mineral control keeps triggering clashes even after the Taliban’s broader consolidation. Regional Logistics: Reports say Afghanistan’s trade is increasingly rerouting away from Pakistan, with container volumes through Pakistan sharply falling—an issue for Afghan importers and for businesses in Khyber Pakhtunkhwa that depend on transit flows. Humanitarian Supply: WFP’s acting executive director told the UN Security Council that the conflict-hunger cycle is accelerating, putting more pressure on food delivery and local supply chains.

Afghanistan Health & Construction: The Taliban say they’ve completed a $35,000 one-story health center in Panjshir’s Jarwish village, with six rooms now operating—another small step as Afghanistan’s health system still faces shortages. Afghanistan Industry & Trade: Iran’s foreign ministry says it wants sustained work to expand trade with Afghanistan by cutting border and customs barriers, while also pushing studies to map Afghanistan’s mineral potential for future cooperation. Afghanistan Agriculture & Food Processing: Kabul’s state-owned Meat and Dairy Production Company chief traveled to Iran to explore modern machinery, cold-storage, and technology transfer to boost capacity and improve hygiene and packaging standards. Regional Logistics & Connectivity: Uzbekistan reports a 40% jump in freight traffic with SCO members over five years, reaching 33.5m tonnes in 2025—highlighting land-route momentum for Central Asia–South Asia trade. Security & Development Risks: In Pakistan’s Balochistan, five Punjabi road workers were killed and another injured in an attack on a construction site, underscoring how violence can disrupt infrastructure projects and labor mobility. Energy Shock Spillover: Fuel shortages in Kyrgyzstan and Tajikistan are being blamed on Russian export restrictions after Ukrainian strikes on refineries—an energy supply shock that can hit regional transport and agriculture. Diplomacy & Afghanistan in Focus: India’s Jaishankar met Russia’s Lavrov and Putin, with Afghanistan, Iran, and Ukraine on the agenda, and both sides stressing coordination across UN, SCO, BRICS and the G20.

Infrastructure & Power: Afghanistan’s Islamic Emirate has approved 21 development projects worth about 6.5 billion afghanis (around $99m), including Manaqi Hydroelectric Dam reconstruction in Kunar, customs scanners for multiple airports, and new hospital builds—plus electricity transmission and distribution upgrades. Electricity Access: UNDP warns reliable power remains a major bottleneck: only about 40–42% of Afghans have grid access, with nearly 90% of that in cities; it points to decentralized solar and battery systems, including solar for women’s markets. Trade & Industry Links: Iran calls for sustained efforts to expand trade with Afghanistan by cutting border and customs barriers, while also pushing mineral studies and a resource database. Mining & Market Potential: Afghan gemstones are finding new buyers via global trade and online platforms, but the sector still lacks extraction and processing equipment and standards. Security & Business Climate: The Islamic Emirate rejects claims of rising northern insecurity, saying issues tied to mining and unauthorized activities were brought under control quickly. Food & Processing Tech: Afghanistan’s state slaughterhouse chief is visiting Iran to explore modern machinery, cold storage, and technology transfer to boost meat and dairy processing capacity. Regional Logistics Pressure: Reports highlight a sharp drop in Afghanistan-Pakistan transit containers, with trade shifting toward Iran and Central Asian routes—raising stakes for transport and clearing businesses. Unexploded Ordnance Risk: A 500-kilogram Russian-made bomb was found and destroyed in Samangan, underscoring ongoing hazards from leftover explosives.

Infrastructure Push: Afghanistan’s Islamic Emirate has approved 21 major development projects worth about 6.5 billion afghanis (~$99m), including hydropower dam rehabilitation, airport customs scanners, hospital construction, and power transmission/distribution expansion—funded from the domestic budget. Flood Risk to Industry & Farms: UNICEF reports flash floods in central and eastern Afghanistan killed at least 26 people, injured 130+, and damaged homes, bridges, roads, irrigation, agricultural land, and schools—hitting livelihoods and local supply chains. Mining & Jobs: Panjshir emerald sales reached nearly 72,000 carats sold via 11 auctions for over 101m afghanis, with the sector employing about 15,000 people and expected to grow with new sites and licenses. Trade & Transit Pressure: A report says Afghanistan’s transit trade through Pakistan has sharply collapsed since the Taliban return, with container volumes falling from FY23 highs to FY26 lows—raising concerns for regional industrial resilience. Security & Supply Chains: Philippine authorities seized ~43kg of methamphetamine shipped from Afghanistan, hidden in cargo at Manila’s container port, underscoring risks in cross-border logistics. Women’s Economic Limits: Experts warn Taliban restrictions on women’s education and employment are shrinking Afghanistan’s workforce and future skilled capacity, weighing on growth across health, education, services, and trade.

Flood Response & Agriculture: UNICEF reports flash floods (July 20–Aug 3) killed at least 26 people and damaged homes, roads, markets and irrigation in Nuristan and across central provinces, with about 1.6 million sq meters of farmland affected and livestock losses. Rural Development & Infrastructure Quality: The Taliban says Daikundi development projects worth over 12.6 million afghani are completed, including roads and irrigation work, but locals also warn parts of the Kabul–Kandahar highway were damaged again, raising durability concerns. Mining & Local Livelihoods: In Badakhshan, residents fear Chinese mining expansion is blocking access with camps and operating without enough environmental safeguards, while analysts say investment and jobs come with dependency and geopolitical risks. Women’s Economic Impact: Experts warn Taliban restrictions on women’s education and employment have removed a major share of the workforce, cutting incomes and slowing growth, with a future shortage of skilled female professionals. Trade & Industry Shock (Regional): A US–Canada tariff fight deepened after talks collapsed, with 50% US tariffs on $20b of Canadian goods expected to hit sectors like steel, dairy and agricultural equipment—an example of how trade disruptions can ripple into supply chains. Energy & Transit: Belarus signals it wants to expand trade with Afghanistan, including direct agreements to transport and import petroleum products and boost industrial investment. Private Sector Production (Agri-Industry): Herat beekeepers report honey output up 50% year-on-year to nearly 250 tons, while they push back against low-quality imported honey flooding local markets. Security & Business Risk: Crisis Group warns unrest is growing in northern Afghanistan, citing disputes tied to poppy eradication and mining revenues, including armed challenges to Taliban control in Badakhshan. Returnee Support: Afghanistan’s Ministry of Refugees and Repatriation says it distributed $2.612m in aid to returnees and displaced families, including cash, food, shelter repairs and employment support.

Sanctions Pressure on Iran: China rejected US calls to join “economic war” against Iran, warning sanctions and pressure won’t solve the conflict and opposing unilateral measures not backed by the UN. Afghanistan Trade & Industry Links: Afghanistan’s Ministry of Commerce and Industry says Belarus is ready to expand cooperation, including direct agreements to transport and import petroleum products and invest in industrial and energy sectors. Agribusiness Update (Herat Honey): Herat beekeepers report honey production up 50% year-on-year to nearly 250 tons, while officials say a working group has collected and destroyed over 600 kg of low-quality or fake honey to protect local prices. Infrastructure Watch (Kabul-Kandahar): A rehabilitated section of the Kabul-Kandahar highway in Kandahar’s Daman district has reportedly been damaged again, forcing another round of repairs. Security & Business Climate: A new Taliban police law expands detention and bans demonstrations and recording during punishments, raising risks for public order and day-to-day commerce. Afghanistan’s Recognition Gap: Five years after the Taliban takeover, Kabul still lacks broad international recognition, with many states engaging mainly through security, economic, and humanitarian channels.

Afghanistan Governance & Rights: Taliban police law approved by Hibatullah Akhundzada expands detention to 10 days and bans demonstrations, with police empowered to threaten suspects with death and compel “repentance,” raising fresh alarms for public freedoms. Afghanistan Legitimacy: Five years after the Taliban takeover, broad international recognition still eludes Kabul; Russia’s recognition stands out while China, India, Iran, Turkey and others keep engagement focused on trade, security and transit rather than full political acceptance. Afghanistan Industry & Jobs: Baghlan officials report rising trader interest and ongoing projects, including a large rice processing center under construction and a commercial hub creating 200+ jobs, urging more support for private investment. Regional Energy & Connectivity: The Turkmenistan–Afghanistan–Pakistan power transmission project is entering active implementation, aiming to expand electricity exports and support Afghanistan’s stabilization alongside the TAPI gas corridor. Global Trade Shock (Indirect Impact): The US imposed 50% tariffs on $20bn of Canadian goods and Canada vowed dollar-for-dollar retaliation, escalating uncertainty for North American supply chains that can ripple into industrial inputs and logistics.