An Afghan business group has signed a $100 million memorandum of understanding with Indian pharmaceutical giant Zydus Lifesciences, marking a significant shift in the country’s trade posture amid the Taliban’s recent decision to curtail imports from neighboring Pakistan.
The agreement, announced Thursday by the Taliban-run Ministry of Industry and Commerce, was signed between Afghanistan’s Roufi International Group and Zydus Lifesciences in the presence of the Taliban’s ambassador to the United Arab Emirates, at the Afghan consulate in Dubai.
Under the deal, Zydus — one of India’s largest publicly listed pharmaceutical firms — will begin by exporting medical products to Afghanistan. The company is also expected to open a local office and begin domestic manufacturing in the country, according to the ministry’s statement.
The deal comes shortly after the Taliban imposed a ban on the import of pharmaceutical products from Pakistan, citing concerns over quality and dependency.
Earlier this month, the Taliban-run Ministry of Finance gave Afghan traders a three-month window to wind down their dealings with Pakistani suppliers and transition to alternative sources. The move is widely seen as a response to deteriorating political and security ties between Kabul and Islamabad.
The agreement with Zydus follows an official visit to India by Taliban commerce minister Nooruddin Azizi, who led a delegation to New Delhi last week at the invitation of the Indian government.
