Kazakhstan and Afghanistan intend to increase the volume of trade turnover to $3 billion

Kazakhstan and Afghanistan intend to increase the volume of trade turnover to $3 billion
  • 7
  • 03.08.2023 08:21:00
  • 3 min read

90% of Kazakhstan's exports to Afghanistan are processed products, Deputy Prime Minister - Minister of Trade and Integration of Kazakhstan Serik Zhumangarin and Minister of Trade and Industry of Afghanistan Alhaj Nuriddin Azizi discussed the main aspects of cooperation. This was reported by the press service of the Government of the Republic of Kazakhstan. As Serik Zhumangarin noted, during the April visit to Kabul, the parties set themselves the task of increasing the volume of trade turnover between the countries from $1 billion to $3 billion. 90% of Kazakhstan's exports to Afghanistan are processed products. Already now we are seeing great progress in expanding the range of trade. In addition to such traditional products as flour and wheat, deliveries of rolled domestic metal, mineral fertilizers, rye, flax have begun. Following the results of the last visit of Kazakhstani companies to Kabul, the first deliveries of our energy drinks, flour products, mineral fertilizers took place, there is interest in sunflower oil. Textiles appeared in imports from Afghanistan along with agricultural products. We have something to work on actively," Serik Zhumangarin said. To enhance cooperation, the Afghan side was invited to use the potential of the Trading House of Kazakhstan in Herat and open its trade representative office in Kazakhstan. The participants of the meeting discussed the possibilities of developing existing trade routes and creating alternative routes for the supply of goods through Afghanistan. In particular, today, when transporting grain and flour to Afghanistan through the Galaba station on the territory of Uzbekistan, there is a discount of 20% to the railway tariff. At the same time, taking into account the current discount, tariffs for the transportation of Kazakh grain cargoes through the territory of Uzbekistan in the direction of Afghanistan and Tajikistan are quite high. To increase the volume of exports of our goods to Afghanistan, we are working on an alternative and more profitable route through the territory of Turkmenistan. Our railway company has worked out the issue of providing additional discounts in the amount of 10% to the already existing 30% on the transit tariff on the territory of Turkmenistan through the Turkmen-Afghan Turgundi crossing," Serik Zhumangarin continued. Currently, the regime of cargo transportation in the Trans-Afghan direction has been simplified. However, one of the problematic aspects of using this route is the high cost of transporting bulk cargo. Taking into account the mutual benefit of increasing the volume of supplies along this route, at the meeting, the Kazakh side asked the Afghan side to consider reducing tariffs for Kazakh bulk cargo to $200. Kazakhstan is considering the participation of domestic companies in other economic projects implemented in Afghanistan, especially in the transport, mining, telecommunications and agricultural sectors. In particular, after the visit of the Kazakh delegation to Kabul in April this year, Kazakhtelecom JSC signed a contract with the Afghan side for the supply of fiber-optic Internet to Afghanistan on a commercial basis. Kazakhstan and Afghanistan are also cooperating in the educational direction. As of today, 130 students from Afghanistan are studying at Al-Farabi Kazakh National University. Every year, 30 people are accepted for training. Serik Zhumangarin proposed, if interested, to increase the number of students from Afghanistan studying in Kazakhstan. Since 2005, the gross volume of investments from Afghanistan into the economy of Kazakhstan amounted to about $11.7 million. 52 joint ventures operate on the territory of Kazakhstan, mainly in the field of trade. As previously reported, Afghanistan is a priority market for flour for Kazakhstan.

 

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