AGP Executive Report

Industry & Trade: Afghanistan’s export and market bottlenecks stay in focus as Balkh melon farmers report a strong harvest but weak prices, high input costs, and stalled exports—urging government help to ship to Central Asia. Mining & Energy: Herat’s salt sector gets a boost with a reported 15-year deal to exploit reserves, while broader regional investment signals continue around Afghanistan’s development. Construction & Infrastructure: Afghanistan is also pushing new infrastructure projects in western provinces, alongside reports of underground market construction in Herat. Aviation & Connectivity: SAHA Airlines has launched flights connecting Afghanistan and Iran, a move that could support trade and logistics links. Agriculture & Rural Livelihoods: Beyond melons, the week also highlights ongoing pressure on farmers from market access gaps and limited support. Security & Disruption: A reported M4.8 earthquake jolts Afghanistan, adding to operational risks for industry and supply chains.

Afghan Industry & Trade: The Fifth National and International Industry and Mining Week Exhibition opened in Kabul, aiming to pull investment and boost sales for Afghan producers, with nearly 400 booths including regional firms from China, Iran, and Uzbekistan. Carpet Manufacturing: A Mazar-i-Sharif carpet factory employing about 200 workers says it already exports to nearby markets and wants wider buyers, highlighting how trade fairs can turn small production into bigger export deals. Agriculture Markets: Balkh melon farmers report a strong harvest but weak prices and limited export routes, urging government support to ship to Central Asia (Tajikistan, Uzbekistan, Turkmenistan). Aviation & Connectivity: SAHA Airlines launched scheduled Iran–Afghanistan routes (Tehran–Kabul, Mashhad–Mazar-e-Sharif, Mashhad–Kandahar), with officials expecting lower fares and stronger passenger and tourism links. Regional Industry Context: A report on NATO’s “NATO 3.0” frames defense as an industrial production challenge—relevant for Afghanistan’s future supply-chain and procurement planning.

Industry & Trade Expo: Afghanistan’s Fifth National and International Industry and Mining Week Exhibition opened in Kabul, running through July 7, with nearly 400 booths and thousands of expected visitors—carpet makers, beekeepers and regional firms (including China, Iran, Uzbekistan) using the fair to sell, find buyers, and pull investment. Aviation Connectivity: SAHA Airlines launched scheduled flights linking Tehran–Kabul, Mashhad–Mazar-e-Sharif, and Mashhad–Kandahar, aiming to cut ticket prices by up to 50% and boost passenger and transport cooperation. Mining & Extractives: The Ministry of Mines and Petroleum signed a 15-year deal to develop and exploit a salt block in Herat’s Ghoryan district, with $5.49m investment, royalties per ton, and community development funding. Urban Infrastructure: Herat and Farah started new projects—an Injil Canal retaining wall and a Farah road with boulevard and lighting—targeting flood protection and easing traffic for commercial growth. Health Services: A mobile eye-care team is set to operate in Baghlan (July 5–16), offering free cataract surgeries, reading glasses, and medicines. Security & Risk: UNOCHA warned landmines and unexploded ordnance caused 175 casualties in Afghanistan in the first five months of 2026, with children heavily affected, as mine action faces a major funding gap.

Industry & Mining in Kabul: Afghanistan’s Fifth National and International Industry and Mining Week Exhibition opened in Kabul, with Islamic Emirate officials urging a shift from importing to domestic production, offering incentives like land allocation and tax exemptions to attract investors. Mining Contract: The Taliban mines ministry signed a $5.49 million deal to develop a salt mine in Herat’s Ghorian district, covering 9.58 sq km over 15 years, with royalties and community development plus job creation. Trade & Investment Diplomacy: Uzbekistan and Qatar stressed cooperation for Afghanistan’s development, focusing on trade, investment, transport, logistics, and agriculture/rural recovery. Regional Business Links: Uzbekistan’s trade picture showed a widening deficit as imports surged, while Afghanistan-related export ties still appear in regional corridors. Agriculture & Local Governance: In Bamyan’s Panjab district, the Taliban ordered a halt to Kuchis moving livestock into disputed areas until a final decision, after an incursion sparked local complaints. Health & Women’s Economy: Doctors in Kabul report rising anemia among women and girls tied to poverty, poor nutrition, and limited access to iron/folic acid supplements. Infrastructure & Security: Chinese workers resumed work on a highway section in Tajikistan near the Afghan border after security steps, with joint protection and planned exercises. Earthquake Disruption: A 5.3 quake in Afghanistan’s Hindu Kush region sent tremors across Pakistan, prompting evacuations and ongoing monitoring.

Industry & Mining: Afghanistan’s fifth National and International Industry and Mines Week Exhibition opened in Kabul, with Taliban officials saying it brings “hundreds” of manufacturers and mining firms and urging investors to move beyond raw-material supply into mineral processing. Energy & Transport: Chinese workers resumed work on the Dushanbe–Kulma highway in Tajikistan near the Afghan border after a security pause, with Tajik forces protecting crews and joint drills expected. Agriculture & Land: Afghanistan’s Ministry of Justice says a land-grabbing commission has identified and registered 3.94 million jeribs of pastureland in Sar-i-Pul, with most still used for grazing and a smaller share converted or encroached. Opium & Markets: UNODC reports Afghanistan’s opium production fell 95% since 2023, reshaping global heroin supply and pushing traffickers toward synthetic opioids. Regional Trade & Logistics: Uzbekistan’s trade turnover rose to $32.8bn in Jan–May 2026, but exports fell sharply while imports surged; Afghanistan appears as a key export destination for Uzbekistan. Cross-border Security: Pakistan and Afghanistan tensions escalated after Pakistan-linked strikes and Afghan counter-operations, raising risks for regional stability and trade routes. Retail & Consumer Demand: Bangladesh announced Dhaka Discount Fest 2026 (Dec 10–12) with up to 75% discounts and participation including Afghanistan, signaling wider South Asian retail competition.

Fuel & Transport: Kabul petrol jumped nearly 14% in days, from AFN66 to AFN75 per litre, with diesel also rising, squeezing transport operators and household budgets as Afghanistan relies on imported fuel and route disruptions intensify. Agriculture & Rural Livelihoods: In Nuristan’s Parun Valley, women farmers are keeping local food production alive—planting, weeding and harvesting wheat, beans, potatoes and corn—while men handle animal-drawn ploughs and livestock work. Livestock Services Investment: Nangarhar inaugurated a privately funded animal health complex costing AFN 50 million, offering veterinary treatment, vaccination, lab testing and artificial insemination, with plans to replicate similar centers across other zones. Trade & Business Links: Kyrgyzstan and Afghanistan launched a joint Business Council in Bishkek to expand trade and investment, with talks covering agriculture, food processing, construction and logistics. Regional Cooperation: Uzbekistan and Qatar discussed expanding cooperation to support Afghanistan’s development, focusing on trade, economic development, transport and logistics, plus humanitarian initiatives. Industry Events: Kabul is set to host the Fifth National Industry Week Exhibition, aiming to boost domestic products and industry visibility.

Urban Commerce & Jobs: Herat authorities have started building a 38 million afghani underground market, aiming to cut traffic congestion and better organize lab and pharmacy services near the provincial hospital, with completion targeted in six months. Agriculture & Rural Development: Afghanistan’s agriculture ministry and UNDP agreed to expand cooperation on irrigation, alternative livelihoods, and rural infrastructure, including fertiliser support, greenhouses, and water facilities. Trade & Investment Push: ACCI chief says Afghanistan is looking beyond imports toward export growth and Indian investment, with priority areas including mining, food processing, and pharma. Macroeconomic Reality Check: The World Bank reports Afghanistan’s economy is recovering but per-capita living standards keep falling as population growth and migration strain demand and investment. Drug Control Enforcement: Afghan police in Helmand destroyed a drug-processing lab and seized production materials, while earlier operations reported poppy farm demolitions and lab destruction in other provinces. Industry Events: Kabul is set to host the Fifth National Industry Week Exhibition, signaling continued efforts to showcase domestic production and attract business links. Women’s Rights Pressure: A new account highlights widening, structural restrictions on education and public participation for women and girls across Afghanistan.

Industry Week & Trade Promotion: Afghanistan’s Chamber of Industries and Mines says the 5th National Industry Week Exhibition will run in Kabul from July 1–7, with 360+ booths to showcase domestic products and pull in investment. Construction & Urban Markets: Herat has begun construction of a $38 million afghani underground market, aiming to upgrade local commerce and retail space. Energy & Industry Infrastructure: Officials say the TAPI gas project is on track to reach the Herat Industrial Park within six months, a potential boost for manufacturing and power-linked businesses. Health & Compliance in Retail: Reports from western Kabul allege the Taliban-run AFDA is allowing unregistered, unprofessional pharmacies to keep operating after bribes, raising fresh concerns for consumer safety and regulation. Agriculture & Inputs: A fake agrochemical factory was discovered in eastern Afghanistan, highlighting ongoing risks to farmers and the need for stronger oversight of agricultural supplies. Cross-border Logistics: Work has resumed on the Dushanbe–Kulma highway in Tajikistan after attacks near the Afghanistan border, underlining how security directly affects regional transport and trade.

Energy & Trade Risk: US-Iran talks in Doha are in doubt after Trump says a meeting is set for June 30 while Tehran denies it, raising fresh concerns for India’s oil route near the Strait of Hormuz and the wider region’s shipping and fuel costs. Fuel Prices in Afghanistan: Kabul fuel prices jumped again, with petrol rising from 66 to 75 afghanis per litre in days, squeezing households, transport operators, and business costs. Construction & Urban Jobs: Herat Municipality has started a 38 million afghani underground two-level market near the provincial hospital, aiming to finish in six months and create about 200 jobs, with space for labs, pharmacies, and parking. Land & Agriculture Inputs: Afghanistan’s land-grabbing commission in Jawzjan identified 367,573 jeribs of public pastureland; most remains pasture, but about 23,000 jeribs have been converted to farmland or other uses, with registration planned in the national land bank. Regional Business: Afghanistan and Kyrgyzstan signed trade and investment deals worth over $350 million, including a $300 million cement factory, plus plans for a joint chamber of commerce. Women’s Livelihoods: A Kabul entrepreneur, Fatima Shirzad, expanded from a 10,000 afghani jewelry start into training centers and tailoring workshops that support women’s employment.

Afghan Industry & Trade: A three-day exhibition in Pul-e-Khumri (Baghlan) showcased Afghan-made agricultural goods, handicrafts and food, with 85 kiosks set up to boost small enterprises and push domestic consumption. Regional Commerce: Afghan and Kyrgyz officials met in Bishkek for an Afghan-Kyrgyz business forum focused on expanding trade, investment and transit cooperation, with urgency rising as Pakistan keeps key border crossings restricted. Agriculture & Water: Residents in Badghis report worsening water shortages as groundwater drops and karez dry up, forcing families to walk long distances for drinking water. Industry Support: UNIDO’s ITPO executive director in Bahrain proposed an international BD40m fund to sustain startups and MSMEs in war-affected countries, with possible future expansion to include Afghanistan. Security Spillover: A Karachi Rangers camp attack suspect, identified as an Afghan national from Jalalabad, claimed he and accomplices were trained in Afghanistan for the operation linked to Jamaat-ul-Ahrar. Disaster Risk: A 6.2 quake struck Afghanistan, with tremors felt across Delhi-NCR and Jammu & Kashmir, underlining the need for preparedness.

Disaster & Resilience: A powerful 6.2-magnitude earthquake hit Afghanistan, with tremors felt across northern India including Delhi-NCR and parts of Jammu & Kashmir, renewing focus on seismic risk and preparedness. Water & Agriculture: In Badghis, residents say groundwater levels are falling and karez are drying up, worsening water shortages and threatening farming livelihoods. Trade & Connectivity: An Afghan-Kyrgyz business forum in Bishkek pushed for expanded bilateral trade, investment, and transit cooperation as regional border disruptions keep trade routes under pressure. Tourism Skills & Services: Afghanistan’s Information and Culture deputy minister asked Iran to help train tourism and hospitality lecturers, aiming to improve services for tourists and pilgrims. Tourism Infrastructure Gap: Paryan Valley in Panjshir draws growing summer visitors, but locals complain about missing hotels and basic facilities that limit jobs and income. Energy & Industry Planning: Afghanistan’s tourism cooperation with Iran and regional connectivity efforts come as the wider region grapples with logistics and infrastructure needs. Drug Economy Watch: UN reporting says Afghanistan’s opium stockpiles still sustain the global heroin trade despite a sharp production collapse after the Taliban ban, keeping illicit markets active. Regional Security Spillover: Iran and the US traded fresh attacks in the Gulf over a fragile interim ceasefire, raising uncertainty for energy shipping through the Strait of Hormuz.

Energy & Industry: Afghanistan’s industrial momentum faces a gas-supply squeeze as governments push “crash programme” plans to stabilize energy for factories, with new LNG regasification capacity flagged to restore investor confidence. Trade & Investment: Afghan business delegations keep moving outward—Balkh Chamber engagement in Türkiye and Afghanistan’s Ministry of Industry and Commerce meetings with Afghan traders in China highlight efforts to expand exports, attract investment, and connect industry with transit and training. ICT & Business Operations: The Taliban’s smartphone ban in state institutions is spreading, slowing coordination and disrupting workflow—an operational hit for commerce and public services. Agriculture & Food Security: Heavy rain and flash floods across multiple provinces have killed people, damaged homes and shops, destroyed roads and water networks, and wiped out agricultural land and livestock—raising near-term pressure on production and supply. Security & Supply Chains: Reports show Myanmar replacing Afghanistan as a leading illicit opium source, with trafficking corridors feeding into India’s northeast—an indirect but serious regional risk for trade, logistics, and stability. Disaster Risk: A 6.1-magnitude quake shook northeastern Afghanistan and Kabul, while deeper tremors were felt across the region, underlining fragile infrastructure and limited emergency capacity. Industry-linked Crime: A major car-bomb case in India saw NIA name new conspirators tied to the Red Fort blast, a reminder of how conflict networks can disrupt regional security and business confidence.

Disaster & Food Security: Afghanistan’s ANDMA reports at least 5 deaths from flash floods, severe storms and landslides across Kabul, Zabul, Kandahar, Samangan, Takhar, Nangarhar, Laghman and Kunar, damaging homes, roads and agricultural land—while WFP warns border closures with Pakistan and rerouting trade through Iran are pushing up food and fuel prices and worsening food insecurity for 13.8 million people. Energy & Industry Infrastructure: TAPI pipeline progress in Herat shows 90+ km laid and 125 km prepared, with officials expecting gas to reach Herat city and the industrial park within six months, boosting factory operations. Mining & Power Supply: Shabashak coal mines in Afghanistan are producing 200–300 tonnes daily, with officials citing high-quality calorific output supporting steady heat demand. Trade Corridors: WFP says about 60% of Afghanistan’s trade now moves via Iran after Pakistan border disruptions, increasing transport costs and straining supplies for agriculture and households. Health & Human Capital: MSF says severe child malnutrition admissions in southern Afghanistan rose by over 30% in early 2026, blaming reduced aid, drought and supply disruptions for therapeutic food. Drug Control Support: The EU reiterates backing for Afghanistan’s drug treatment and recovery programs, including support for rehabilitation and relapse prevention.

Afghanistan–India Trade: Kabul and New Delhi signed an MoU to expand trade and investment cooperation, with Afghan business leaders pushing joint investment in food processing, industrial development, technology transfer, and participation in India’s trade fairs. Agriculture & Food Industry: Afghan farmers are rebuilding fields after poppy-to-wheat shifts, while Herat orchard owners report higher yields but still face storage and market gaps—highlighting the need for processing and cold-chain capacity. Mining & Industry Infrastructure: Samangan’s first large-scale iron production plant is nearing completion, and Logar’s chromite processing plant has been inaugurated, signaling continued momentum in extractives and downstream processing. Construction & Water Systems: Afghanistan launched construction work on major higher education projects and started multiple water supply networks in Parwan, alongside Salang Highway reconstruction contracts—key steps for industry-linked logistics and utilities. Opium & Drug Market Watch: UNODC reports poppy cultivation down 95% since the ban, with opium stockpiles likely lasting until end-2026, while drug use is shifting toward synthetic drugs—an important risk for Afghanistan’s future labor and public health.

Drug Policy & Public Health: The UNODC World Drug Report 2026 says global drug use is rising to about 331 million people and warns of a surge in new, more potent synthetic drugs (including fentanyls and nitazenes) as heroin supply declines after Afghanistan’s 2022 poppy ban. Afghanistan Humanitarian Response: WHO reaffirmed support for Afghanistan’s drug addiction treatment, backing 11 treatment centers and 11 mobile outreach teams across 10 provinces, with added services in Kabul, Kandahar and Helmand. Rights & Governance: Afghanistan is ranked “very high risk” for torture in the 2026 Global Torture Index, with OMCT alleging Taliban authorities legalized torture and ill-treatment in law. Infrastructure & Water Supply: Construction began on six water supply networks in Parwan (42.8m afghani) to provide potable water to 2,218 families. Agriculture Transition: In Logar, farmers are shifting from poppy to wheat and potatoes, citing steadier legal income and reduced harm to land and communities. Industry & Markets: A fake agrochemical factory was discovered in eastern Afghanistan, raising concerns for counterfeit inputs and farmer safety.

Afghan Trade & Industry: Afghanistan showcased its production capacity at the China–Eurasia Expo 2026 in Urumqi, with Afghan firms taking part in booths for carpets, saffron, dried fruits and gemstones, while officials urged wider participation and lower costs for exporters. Telecom Consumer Impact: Afghanistan’s telecom regulator and the Ministry of Communications ordered operators to restore internet package prices and data allowances to previous levels after public complaints over rising rates and slow speeds. Agribusiness Integrity: Afghan authorities in Nangarhar uncovered and shut down a counterfeit agricultural chemicals factory, seizing nearly 3,500 cartons and arresting three suspects. Cross-border Logistics: Pakistan Afghanistan Joint Chamber of Commerce and Industry (PAJCCI) welcomed steps to facilitate movement of empty containers from Afghanistan, calling it a confidence-building move for renewed trade and transit. Mining & Manufacturing Momentum: New industrial milestones continued, including reports of iron production progress in Samangan and chromite processing activity in Logar.