A significant leap in the economic bond between Kazakhstan and Afghanistan is on the horizon, with anticipated trade expansion to a substantial $3 billion, according to a statement by Kazakhstan’s Ministry of Trade and Integration. The bold projection was unveiled at the recent Kazakh-Afghan Business Forum, suggesting a strategic intent to fortify the commerce bridge between these nations.
Deputy Prime Minister of Kazakhstan, Serik Zhumangarin, articulated his confidence in this expansion during his forum address. “The mutual trade turnover between our countries has reached almost $1 billion, and in the future, it is planned to increase the volume of trade to $3 billion,” he announced.
A key piece of this strategy came into existence this year with the establishment of the Kazakh Trading House in Herat, Afghanistan, aiming to amplify and diversify bilateral export-import activities. Zhumangarin elaborated on this point, emphasizing the importance of Afghanistan as a destination for Kazakhstan’s flour exports, which represent 70 percent of the nation’s total flour export market.
Beyond agriculture, Kazakhstan identified opportunities to bolster exports to Afghanistan to a value of $500 million in sectors ranging from petrochemicals and chemicals to metallurgy, light industries, and machine-building. This reveals a strategic shift towards diversifying trade commodities, transcending the historical reliance on food supplies.
At the heart of this ambitious trade expansion is the Trans-Afghan railway project. This monumental undertaking aims to forge a direct link from Termez in Uzbekistan to Kabul in Afghanistan, and then to Peshawar in Pakistan. The railway will be a cornerstone for seamless interregional cooperation amongst Central Asian states and countries in South Asia and the Middle East.
According to Zhumangarin the construction of Mazar-I–Sharif–Kabul-Peshawar trans-Afghan railway transport corridor is a crucial initiative. This ambitious route promises to reenergize the dynamics of trade and economic relations.
The railway will concurrently boost Kazakhstan’s trade links with other regional players, namely Pakistan and India. Authorities across the region are cooperating to craft beneficial mutual trade conditions, highlighting the importance of regional security.
The benefits extend beyond Afghanistan. Turkmenistan is primed to play a key role by providing preferential transit tariffs, motivated by an eagerness to enhance transportation within its territory. With similar agreements in place with Uzbekistan, favorable conditions for transit railway transportation promise to ensure a balanced supply of flour and grain to Afghanistan.
The energy sector is another frontier for enhanced cooperation between Kazakhstan and Afghanistan. Prospective projects encompassing the extraction and transportation of oil and gas could further solidify the economies of both nations.
The Kazakh-Afghan Business Forum concluded with B2B negotiations, bringing together 250 representatives from both nations’ business communities. These discussions underscored the shared commitment to enriching economic ties and unearthing new avenues for mutual advancement.
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