Business

$50 million oil refinery opens in Balkh

An oil refinery with a daily capacity of 600 tons officially begun operations in the northern province of Balkh, Taliban officials said on Friday.

The refinery, established with a $50 million investment by the private sector, is expected to create 100 jobs, local Taliban officials said as quoted by Taliban-run Bakhtar News Agency.

Named Afghan Yasini Oil, it is one of the latest infrastructure projects aimed at boosting the country’s industrial sector.

This development follows the opening of Afghanistan’s largest oil refinery last year in Herat Province. Located 25 kilometers north of Herat city, the Asia-Heriwa refinery has the capacity to produce 7,000 barrels of oil daily to meet domestic demand.

The expansion of the oil refining sector is seen as a significant step in reducing Afghanistan’s reliance on fuel imports and stimulating economic activity. However, the broader economic challenges facing the country, including international isolation and limited access to global markets, remain formidable obstacles to sustained industrial growth.