Business

Kyrgyzstan seeks to strengthen trade, economic ties with Afghanistan

Kyrgyzstan is aiming to expand trade and economic relations with Afghanistan, particularly in sectors such as transportation, energy, and agriculture, according to Akylbek Japarov, Chairman of the Cabinet of Ministers.

Japarov’s comments followed a meeting with Noorullah Amin, the Taliban’s acting chargé d’affaires to Kyrgyzstan, as reported by Trend News.

“Kyrgyzstan is interested in developing trade and economic ties with Afghanistan, including improving transportation links, jointly exploring Afghan mineral resources, and collaborating in energy, industry, and agriculture,” Japarov said. He emphasized the country’s commitment to advancing “promising projects” that would benefit both nations.

Despite these ambitions, trade between Kyrgyzstan and Afghanistan has recently seen a decline. According to the National Statistical Agency of Kyrgyzstan, trade volume between the two countries amounted to $8.8 million in the first half of this year, marking a 33.6 percent drop from $13.2 million during the same period in 2023. Kyrgyzstan’s exports to Afghanistan totaled $5.8 million, while imports stood at $2.9 million.

The meeting comes against a backdrop of ongoing concerns from Afghan traders about the country’s banking system, which has been strained under the Taliban’s rule. The Central Bank of Afghanistan is currently led by a UN-sanctioned Taliban official, complicating financial transactions and international relations. While the sanctions are targeted at individuals within the Taliban, rather than Afghanistan as a whole, they continue to impact the country’s economic prospects and its ability to engage in international trade.