Export of Kazakhstan to Afghanistan doubled

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The Vice Premier and Minister of Trade and Integration of Kazakhstan Serik Zhumangarin, announced on August 3, 2023, during the Kazakhstan-Afghanistan Business Forum that the trade turnover between Kazakhstan and Afghanistan for the year 2022 nearly reached the $1 billion, doubling compared to 2021. This information was reported by Zakon.kz.

Zhumangarin confirmed that Kazakhstan supports the establishment of Afghanistan as an independent, neutral, unified, peaceful, democratic, and prosperous state.

"We are interested in maintaining the existing trade, economic, transport, logistics, and energy ties with Afghanistan. The trade turnover between Kazakhstan and Afghanistan for 2022 reached nearly $1 billion, with a 90% share being accounted for by Kazakh exports, mainly processed goods. Trade between the countries in the first five months of the current year amounted to $316.6 million, with $310 million attributed to Kazakh exports," said Zhumangarin.

Afghanistan is a priority market for Kazakhstan's flour exports, constituting 70% of the total flour exports.

"We currently see a trend towards diversification of the export basket. According to our calculations, Kazakhstan has export potential for food, petrochemical, chemical, metallurgical, light industry, and machinery products to Afghanistan, amounting to $500 million. Investment cooperation between the countries is also developing. Since 2005, the gross inflow of investments from Afghanistan into the Kazakh economy reached about $11.7 million. There are 52 joint ventures in Kazakhstan that operate in the trade sector," stated the Vice Premier of Kazakhstan.

It is crucial to preserve and increase traditional supplies of Kazakhstani flour to Afghanistan, mainly through Uzbekistan's territory. In the first four months of 2023, over 450,000 tons of flour worth $150.8 million were sent to Afghanistan through Uzbekistan, according to Zhumangarin.

Due to relatively high tariffs for transporting Kazakh grain through Uzbekistan to Afghanistan and Tajikistan, the Kazakh side is working on expanding transit transportation possibilities to Afghanistan. This should increase the volume of exports and satisfy the Afghan market's demand.

"Today, Turkmenistan is interested in developing transportation through its territory and is ready to provide discounts and preferential transit tariffs on its territory. This direction can be an alternative route for the delivery of flour products. To achieve this, the Unified Operator for the Promotion of Non-raw Material Goods Export, QazTrade, will ensure a reduction in delivery costs of domestic goods to Bolashak station. Simultaneously, we have strengthened agreements with Uzbekistan to provide favorable conditions for transit railway transportation through our countries' territories, so that we can supply flour and grain to Afghanistan on a parity basis," added Zhumangarin.

Afghanistan serves as a key transportation corridor in Central Asia, leading to Pakistan and India, which are of significant interest to Kazakhstan in terms of trade. Kazakhstan has conducted negotiations with the large Pakistani logistics company NLC (National Logistics Cell), which works closely with Afghan companies as well.

"The company already offers services for transporting goods to/from Pakistan by road through Afghanistan with competitive tariffs in a short period and ensuring security. Additionally, Kazakhstan highly values the initiative to construct the railway Trans-Afghan transport corridor Mazar-i-Sharif - Kabul - Peshawar, which will provide uninterrupted interregional cooperation between Central Asian countries and South Asian and Middle Eastern countries. This route will give a new impetus to the dynamics of trade and economic exchanges," further mentioned Vice Premier of Kazakhstan, Zhumangarin.

The Minister also mentioned that Kazakhstan is ready to implement educational programs to train Afghan students. In the current year, Kazakhstan is ready to allocate 30 grants for students from Afghanistan. Currently, more than 450 Afghan students are studying in Kazakhstan.

The Kazakhstan-Afghanistan Business Forum commenced in Astana with the participation of official representatives from both countries and business representatives.

CentralasianLIGHT.org,

August 3, 2023