Afghanistan and Uzbekistan Sign $5 Billion Trade Agreements to Boost Economic Ties

The Afghanistan Chamber of Commerce and Investment has announced that the Uzbek private sector has signed memorandums of understanding and trade contracts worth over five billion dollars with Afghanistan in the past eight months. According to this entity, these agreements outline a new outlook for expanding economic relations between Kabul and Tashkent.

Based on the information provided, these memorandums cover sectors including fresh and dried fruits, precious and semi-precious stones, coal, cement, carpets, cotton, raw materials and foodstuffs, as well as pharmaceuticals. During this period, multiple trade delegations have traveled between the two countries, with discussions focusing primarily on developing commercial ties and economic cooperation.

Mohammad Wali Amini, the head of the Afghanistan Chamber of Commerce and Investment, stated that the volume of bilateral trade, which was previously between 400 and 500 million dollars annually, has now increased to over one and a half billion dollars. He expressed hope that this figure will reach nearly five billion dollars within one to two years.

Additionally, several Uzbek investors have expressed readiness to invest in Afghanistan’s textile sector, clothing production, and cotton cultivation. They emphasized that, given access to affordable electricity and cooperation from officials, they are prepared to invest millions of dollars in industry.

Bakhtiyar Janov, an Uzbek businessman, said that if favorable conditions, particularly access to cheap electricity, are provided, they are ready to invest between 10 to 15 million dollars within one to two years to establish a spinning factory in Afghanistan. Another businessman from Uzbekistan’s Andijan province said their goal is to expand cooperation with Afghanistan and export textile products to the country.

Both parties have declared their efforts to usher in a new chapter of economic cooperation and raise the volume of bilateral trade to five billion dollars over the next five years. Economic experts emphasize that achieving this goal requires significant investment in transit, energy, industry, and facilitating export-import processes. Addressing these issues could play a decisive role in attracting foreign investment.