Central Asia's trade artery will lead through Afghanistan
Kazakhstan and Turkmenistan will build the trade corridor through Afghanistan.
Central Asia's trade artery will lead through Afghanistan
The Economics of Geography

Central Asia's trade artery will lead through Afghanistan

Kassym-Jomart Tokayev the president of Kazakhstan and Serdar Berdimuhamedow the president of Turkmenistan. Photo: AFP/ Kazakh Presidency Office
Eurasia 14/10/2024 09:48

Afghanistan is in a key geographical position, connecting Central and South Asia. Since the Taliban takeover in 2021, more and more countries have realized that a deal with the new leadership is inevitable for the region's economic development. Kazakhstan and Turkmenistan have embarked on a grand plan.

Kazakhstan and Turkmenistan will build a trade corridor through Afghanistan, Kazakh President Kassym-Jomart Tokayev revealed during his visit to Ashgabat in October. Under the agreement, a logistical route would be established through Kazakhstan, Turkmenistan, and Afghanistan to reach South Asian countries, notably Pakistan and the Gulf states.

It is planned to improve the road and rail networks to make transporting goods ten times faster and much cheaper. The regional logistics hub would boost trade between the countries, opening the door to South Asia and, through them, to the wider region, while making Chinese goods and Russian oil more accessible.

More details, such as the cost of investment or when work will start, are not yet known. The preliminary understanding is that the three states would jointly finance the project.

A trade corridor through Afghanistan would be a huge success for the Taliban, who have ruled the country since 2021, are not internationally recognized, and are facing serious economic problems as foreign aid dries up. Kazakhstan was one of the first countries, after China and the UAE, to seek a pragmatic and good relationship with the new Taliban. As part of this, they were removed from the list of terrorist organizations and in August their diplomat in Astana was officially recognized as an ambassador.

Kazakhstan and Afghanistan do not border each other, but trade relations have already been expanding. Between 2021 and 2023, rail traffic (mainly grain and flour) increased by 14 percent. Bilateral trade almost reached $1 billion in 2022 (although it fell somewhat the following year).

Kabul is also negotiating with the Chinese authorities to build a road to China, which they hope will eventually link Iran with China.
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