Economic incentives for peace and stability in Afghanistan

TEHRAN – After a fragile 48-hour ceasefire between Pakistan and Afghanistan expired on Friday evening both sides decided to extend the truce until the conclusion of talks in the Qatari capital of Doha.
The talks between the two neighbors started on Saturday.
Pakistan’s foreign ministry issued a statement on Wednesday announcing that a temporary ceasefire has been agreed with Afghanistan for the next 48 hours amid recent border hostilities between the two neighbors.
Both sides claimed the other requested the ceasefire, which Pakistan said took effect from 13:00 GMT on Wednesday.
Hours after the ceasefire ended on Friday, Pakistan carried out airstrikes across the border in Paktika province, targeting militant hideouts in the Urgun and Barmal districts, security officials confirmed to The Associated Press.
Initially, during the early morning hours of October 9, explosions were heard across Kabul. At the time Taliban government spokesman Zabihullah Mujahid downplayed its severity and did not ascribe any blame. But the next day, the Afghan Ministry of Defense accused Pakistan of launching air strikes on its capital Kabul. Islamabad has denied this accusation.
Until now, neither side has claimed responsibility for the October 9 Kabul bombing. Each side has accused the other of initiating the deadly clashes.
Landlocked Afghanistan has a 2,600-Km long border with Pakistan known as the Durand Line boundary drawn in 1893 under British rule. Movement of militants and smugglers across the porous border has been an issue. It has been exacerbated by Pakistan’s deportation of undocumented Afghan refugees.
The five main border crossings include Torkham, Chaman, Kharlachi, Angoor Adda and Ghulam Khan. The borders are not completely sealed but trade and civilian movement face frequent disruptions and sudden shutdowns, especially at Torkham and Chaman.
Pakistan has accused the Taliban government – in power since August 2021 – of harboring armed groups, particularly the Tehrik-i-Taliban Pakistan (TTP), which Islamabad blames for a surge in attack on its security forces. Kabul denies harboring militants targeting Pakistan.
But a UN Security Council report in July estimated up to 6,500 TTP fighters are based in Afghan soil. It added the “Taliban do not conceive TTP as a terrorist group”.
Also known as the Pakistani Taliban, the TTP is an umbrella organization of militant groups based in eastern Afghanistan and Pakistan’s tribal belt. It has been fighting for its version of Islamic governance in Pakistan and replace government with a strict Islamic-led system of governance.
TTP has been listed as terrorist group by the United Nations since 2011. Afghanistan’s Taliban government does not officially designate the TTP as a terrorist organization. Two main reasons for that: First, Afghan Taliban and the TTP both draw heavily from Pashtun tribes and share the same ideological kinship.
Secondly, both reject the Durand Line.
Meanwhile, the UN agencies focused on refugees and migration jointly voiced their concerns Wednesday over Pakistan’s plans to begin a new round of mass deportation targeting three million Afghan citizens residing in Pakistan. UNHCR has warned Afghan refugees forced to return face uncertain future amid the conflict.
The Indian connection
The October 9 explosions in Kabul coincided with the arrival on the same day of the Taliban Foreign Minister, Amir Khan Muttaqi, in India for a six-day visit, the first trip since Taliban’s return to power.
Muttaqi was granted a temporary travel exemption by the United Nations Security Council Committee. He concluded his visit to India on Wednesday.
During his visit Muttaqi held talks with his Indian counterpart Dr. S. Jaishankar in New Delhi.
When the Taliban returned to power on August 2021, India was forced to shut its embassy and pulled out its diplomat and citizens. A year later India started re-establishing diplomatic presence in Afghanistan, tasked with overseeing the distribution of humanitarian aid.
More than four years later India rolled out a red carpet for the Afghan delegation led by Muttaqi.
Analysts believe that India’s reset is because New Delhi wants to counter Pakistani influence in Afghanistan and create opportunities for Indian investment in Afghanistan’s vast mineral wealth.
In a press conference with Indian Foreign Minister S. Jaishankar on Friday, Muttaqi said both Pakistan and Afghanistan, want a positive relationship. He also said, “There are certain groups in Pakistan that are trying to stir up unrest.”
Jaishankar called for closer bilateral cooperation, saying this will contribute to “regional stability and resilience.” He thanked Muttaqi for his “invitation to Indian companies to explore mining opportunities in Afghanistan”.
On Monday, Muttaqi announced that direct flights would soon start between Kabul and Indian cities.
Afghan mineral resources
When most people think of Afghanistan the thought of a poor third world country comes to mind. The fact is that Afghanistan is gifted with vast undeveloped natural resources.
Afghanistan’s abundant mineral resources harbor great untapped potential. The mountainous country sits on an estimated $1tn of materials that decades of war have largely put off limits.
Satellite images show many small-scale mines that are now coming to life. The Financial Times reports that of the 128 contract sites, 88 show signs of development and expansion.
According to the World Bank, many mines and resources such as oil, emeralds and nephrite, a type of jade prized in China, have increased Afghanistan’s revenue by 22 percent year-on-year in April and May due to the auctions of mines.
The new rulers of Afghanistan have announced more than 200 mining deals worth billions of dollars. Positioned on the Tethyan belt, Afghanistan is well endowed with gold, copper, gems and lithium.
Beyond gold and marble, Afghanistan's vast mineral wealth includes significant reserves of copper, lithium, iron ore, rare earth elements, coal and precious stones. These minerals are critical to global industries like electronics, electric vehicle battery manufacturing, construction, and energy.
The mining sector will help Taliban make new friends, as foreign powers such as China, Russia, India and Iran step in to fill the vacuum left by departed Western coalition.
Taliban and the world
While many countries, including China, Russia, Iran, Pakistan, and Turkey, have reopened embassies in Kabul, only Moscow has formally recognized the Taliban government.
On July 3, 2025, Russia became the first country to formally recognize the Taliban regime nearly four years after its return to power. The Taliban flag was raised for the first time at the Embassy of the Islamic Emirate of Afghanistan (IEA) in Moscow.
Since June 2025, Gul Hassan has served as the first permanent ambassador by Taliban and accredited by Russia.
Although Beijing severed diplomatic ties after the return of Taliban but today China is the largest foreign investor in Afghanistan. According to the Chinese Ministry of Foreign Affairs website, in 2012 the two countries announced the establishment of a strategic cooperative partnership. The site put the 2024 bilateral trade between the two countries at $1.59 billion, a year-on-year increase of 19 percent. The two countries share a 92 km border.
Following Muttaqi’s visit to India, New Delhi announced it is upgrading its technical mission to a full-fledged embassy.
Iran maintains friendly ties with both countries. Foreign Minister Abbas Araghchi has called on both sides to “exercise restraint” amid ongoing clashes.
During a press conference in Tehran on Oct. 13, Iranian Foreign Ministry spokesman Esmaeil Baghaei warned against dangerous “spillover” effects of this conflict. He stated that “the most important issue for Iran is the security and stability in neighboring states.”
He added, “Afghanistan and Pakistan are both our Muslim neighbors, and the estrangements in relations between the two countries can have consequences extending beyond their borders.”
As border skirmishes amplified, all sides persuaded the two parties to the conflict to come to the negotiating table and sort out differences with dialogue and seize hostilities.
Just this summer the foreign ministers of Afghanistan and Pakistan met on the sidelines of the 51st session of the Organization of Islamic Cooperation (OIC) Council of Foreign Ministers in Istanbul.
Both sides discussed a wide range of issues, including trade, transit, regional infrastructure, etc. Both ministers expressed support for expanded cooperation on strategic projects.
A seizure of hostilities will facilitate investment and development in Afghanistan’s natural resources. Peace and stability in the country will allow the mining sector to help kick-start Afghanistan’s economy. After decades of instability, Afghanistan’s natural resources can bring a lifeline in a country where a quarter of the 40 million population are at risk of famine.
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