Uzbekistan Powers Up Afghanistan with $243M Energy Deal

Uzbekistan is set to invest $243 million to bolster Afghanistan’s energy infrastructure, a move aimed at fostering economic stability in its southern neighbor. A recent agreement, signed by Uzbek Energy Minister Jurabek Mirzamakhmudov and Afghanistan’s Deputy Prime Minister Mullah Abdul Ghani Baradar, outlines the construction of two major power lines and the modernization of substations, significantly enhancing regional energy connectivity.

The large-scale projects are designed to facilitate the import of 800 to 1,000 megawatts of electricity from Uzbekistan into Afghanistan. This includes the new 500 kV Surkhandarya–Dasht-i-Alvan and 220 kV Kabul–Sheykh-Mersi power transmission lines. The investment is expected to be a critical driver for Afghanistan’s industrial and agricultural sectors, providing a reliable power supply and creating much-needed jobs for the country’s youth.

From the Afghan perspective, the initiative aligns with the Taliban government’s declared shift in focus towards economic revitalization. Taliban officials have stated that after achieving their primary goals of security and Sharia law enforcement, their full attention is now on rebuilding the economy. They point to domestic projects like the $117 million “Pashdan” dam as proof of their commitment to development, which they claim was completed without foreign assistance and is key to combating drought and poverty.

This Uzbek initiative is part of a broader trend of Central Asian engagement with Afghanistan. Other nations are also involved in energy projects, most notably the proposed Turkmenistan-Uzbekistan-Tajikistan-Afghanistan-Pakistan (TUTAP) power line. Analysts view these ventures as components of a larger strategy to create a multimodal infrastructure network. This network aims not only to help stabilize Afghanistan but also to unlock its vast natural resources, which have attracted interest from giants like China and India, while providing landlocked Central Asian states with a strategic corridor to sea ports.

Despite these economic overtures, Afghanistan faces profound challenges nearly four years into Taliban rule. Expert Omar Nessar notes that while security has improved and drug production has fallen, the country remains isolated. The lack of full international recognition hampers foreign investment and infrastructure development, while severe restrictions on women’s access to education draw international condemnation. The economy’s heavy reliance on foreign aid makes it inherently fragile, creating risks of future internal tensions and crises.

International bodies like the Shanghai Cooperation Organisation (SCO) have struggled to formulate a cohesive strategy for Afghanistan. According to expert analysis, the diverging political interests of member states make regional consensus difficult. The revival of the SCO-Afghanistan Contact Group, a move supported by Russia, was reportedly blocked by an unnamed member, highlighting the internal friction. Meanwhile, the Taliban government is pushing for greater participation in SCO summits, with long-term ambitions of full membership.

According to Alexander Knyazev of the MGIMO Institute, Uzbekistan’s policy is pragmatic, viewing economic development in Afghanistan as the most sustainable path to long-term security. Rather than seeing Afghanistan solely as a security threat, Tashkent envisions it as a potential hub connecting Central and South Asia. Knyazev suggests that given the geopolitical landscape, smaller bilateral or trilateral projects focused on specific, shared interests are more likely to succeed than ambitious multilateral frameworks, a cautious approach also seen in China’s and Iran’s limited investment strategies in the country.