Pakistan trade crashes. Afghanistan pitches deeper economic ties with India

Afghanistan's top trade body has called for deeper trade and investment ties with India, urging easier business procedures, fewer administrative hurdles and faster issuance of business visas, news agency PTI reported on Sunday. 

The proposals were discussed in Kabul during a meeting between Afghanistan Chamber of Commerce and Investment (ACCI) Chairman Sayed Karim Hashemi and Indian Ambassador to Afghanistan Yatin Patel.

According to the ACCI, the talks were held "in the framework of a strategic and diplomatic dialogue".

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Pakistan Trade Falls Sharply

The meeting comes against the backdrop of a steep fall in Afghanistan's transit trade with Pakistan.

Transit trade between the two neighbours declined to $367 million in FY26, down from around $5 billion in FY21, as Afghanistan increasingly shifted to alternative trade routes, including through Iran.

India has been expanding connectivity with Afghanistan through Iran's Chabahar Port, which provides direct access to the landlocked country while bypassing Pakistan, which does not permit overland transit of Indian goods to Afghanistan.

India-Afghanistan bilateral trade stood at $907.85 million in 2025-26 and has broadly remained around the $1 billion mark over the past five years.

Afghanistan Seeks Easier Trade And Business Visas

According to the ACCI statement, Hashemi reaffirmed the chamber's commitment to strengthening long-term economic cooperation with India and stressed the need to simplify trade procedures and strengthen private sector institutions.

Referring to his recent visit to India, Hashemi "stressed the need to sustain and deepen economic cooperation in the fields of agricultural exports, handicrafts, mining, and mineral resources."

He also presented "several strategic proposals aimed at increasing Afghanistan's exports, including expanding access to target markets, improving logistics infrastructure, and facilitating the issuance of business visas," the statement said.

The Indian ambassador welcomed the proposals and "reaffirmed India's support in the identified areas of cooperation."

Patel said plans are underway to organise joint trade exhibitions, specialised business forums and exchanges of trade delegations between the two countries.

Both sides agreed to pursue long-term cooperation in trade, investment and infrastructure development, while strengthening economic, political and cultural ties based on "transparency, efficiency and mutual benefit."

India has steadily expanded its engagement with Afghanistan in recent months. Earlier this month, Afghan Agriculture Minister Mawlawi Ataullah Omari visited New Delhi.

A key pillar of India's connectivity strategy has been the 218-km Zaranj-Delaram highway in western Afghanistan, built by India to connect the Iranian border with Afghanistan's ring road network.

The route facilitates trade and humanitarian supplies and forms an important part of India's broader connectivity plans with Afghanistan and Central Asia.

(With inputs from PTI)