The Islamic Emirate of Afghanistan’s Ministry of Industry and Commerce announced on Saturday, 19 July, 2025, in Kabul that the Afghanistan trade expansion 2025 initiative has linked the country with over 100 nations, elevating the total trade volume to approximately $13 billion through diversified exports and transit routes, driven by policy reforms to enhance production and international standards.
In South Asia, the Afghanistan trade expansion 2025 holds profound implications by bolstering regional integration. Enhanced ties with neighbours such as Pakistan, India, and Iran could streamline cross-border commerce, mitigate logistical hurdles, and promote shared prosperity amid geopolitical tensions. This surge not only fortifies Afghanistan’s role as a transit nexus but also contributes to broader subcontinental stability, potentially unlocking untapped markets and reducing dependency on aid.
Afghanistan Trade Expansion 2025: A Leap from 80 to Over 100 Countries
The Afghanistan trade expansion 2025 marks a significant evolution in the nation’s economic strategy. Earlier assessments, including statements from mid-2024, indicated trade relations with more than 80 countries, focusing primarily on key partners like India, China, and Pakistan. However, recent official disclosures reveal a robust acceleration, with commercial engagements now spanning over 100 countries worldwide.
According to the Ministry of Industry and Commerce, this expansion has propelled the overall trade volume to around $13 billion over the past year. More than 8 million tons of goods have transited through Afghanistan, serving as a vital corridor for 43 countries dispatching cargo to 21 destinations. Acting Minister Nooruddin Azizi highlighted this milestone, stating:
“Afghanistan’s international trade now spans over 100 countries, with the overall trade volume reaching around 13 billion U.S. dollars.”
This growth reflects deliberate efforts to diversify beyond raw material exports. The ministry has prioritised value addition in agricultural, industrial, and mineral sectors, implementing international quality standards to make Afghan products competitive globally. Domestic manufacturing has flourished, with the number of factories doubling from 3,500 to 6,500, supported by government incentives.
Investments have also surged, attracting approximately $400 million and drawing over 2,000 investors via official entry points like Kabul International Airport. To facilitate this, 20,806 work permits were issued across various sectors, while 85 development projects in 28 provinces generated jobs for more than 142,000 individuals. Preferential tariffs on 1,176 sets of industrial machinery and 2.7 million tons of raw materials further bolstered local production, alongside hikes in duties on 34 competing imported goods.
Key Agreements and Outreach in Afghanistan Trade Expansion 80 Countries 2025
Building on the foundation of the Afghanistan trade expansion 80 countries 2025 phase where initial pacts with over 80 nations laid the groundwork, the ministry has signed 16 memorandums of understanding (MoUs) to deepen economic ties. These include revivals of agreements like the Afghanistan-Pakistan Transit Trade Agreement (APTTA) and new frameworks with Central Asian states, Russia, China, Turkey, Uzbekistan, Kazakhstan, and Iran.
Official delegations, led by ministry leadership, conducted visits to these nations, establishing commercial attachés to scout investment opportunities. Domestically, 27 exhibitions showcased Afghan products, complemented by participation in 17 regional and international fairs. Such initiatives have not only expanded market access but also positioned Afghanistan as a reliable transit hub, with transit revenues contributing to fiscal resilience.
The Afghanistan trade expansion 2025 extends to specific bilateral boosts. For instance, trade with Pakistan reached nearly $1 billion in the first half of 2025 alone, while exports from Uzbekistan to Afghanistan topped $873 million in eight months. Talks with Iran aim to elevate annual bilateral trade to $10 billion, underscoring the initiative’s momentum.
Ambitious Targets Under Afghanistan Trade Expansion 2025
Looking ahead, the Afghanistan trade expansion 2025 encompasses comprehensive goals to sustain this trajectory. The ministry targets a 10 per cent rise in gross domestic product (GDP), from $17.3 billion currently, up from $14.58 billion and a matching 10 per cent growth in overall trade volume. Exports are slated for a 25 per cent increase, with $500 million in fresh investments and over 100,000 new jobs anticipated.
Infrastructure plays a central role: plans include constructing 50 cold storage facilities across provinces, activating 13 industrial parks, and organising 52 national and international exhibitions. Export complexes at key ports will further streamline outflows. Additionally, over 160,000 jeribs of land have been allocated to industrialists, with regulations approved for facilities management to encourage returning traders.
These measures align with broader economic policies ratified by the leadership, envisioning a prosperous Afghanistan rooted in an Islamic economic framework. The ministry’s focus on processing scrap iron, minerals, and agricultural goods, halting raw exports aims to ignite an industrial revolution, as echoed in earlier policy discussions.
Background
Since the Islamic Emirate’s formation in 2021, Afghanistan’s commerce landscape has undergone transformation. Initial Afghanistan trade expansion 80 countries 2025 efforts targeted stabilisation through regional pacts, evolving into global outreach by mid-2025. Challenges like sanctions persist, yet transit roles and domestic reforms have yielded tangible gains, with GDP growth reflecting resilience.
What’s Next for Afghanistan Trade Expansion 2025
Upcoming priorities include monitoring commercial activities for quality compliance and forging additional transit deals. With ongoing dialogues, such as those with Kyrgyz and Tatarstan officials yielding $183 million in agreements, the trajectory points to sustained integration.
The Afghanistan trade expansion 2025 initiative, evolving from foundational ties with 80 countries to a network exceeding 100, cements Afghanistan’s emergence as a dynamic player in international commerce, poised for enduring economic vitality.
Published in SouthAsianDesk, September 26th, 2025
Follow SouthAsianDesk on X, Instagram, and Facebook for insights on business and current affairs from across South Asia.
