BY Asif Riyaz
The trade relationship between Afghanistan and Iran has seen remarkable growth, with the annual trade volume reaching an impressive $4 billion. This significant figure underscores the deepening economic ties between the two neighboring countries. The Iranian Consul General in Herat has emphasized that Afghanistan is viewed as Iran’s most important economic partner, a testament to the strategic nature of their relationship. This partnership not only benefits the economies of both nations but also highlights a mutual reliance that has been reinforced by shifting regional dynamics and the pursuit of stable trade avenues.
The Ministry of Industry and Commerce in Afghanistan has identified a diverse range of products that comprise the country’s exports to Iran. Notable exports include minerals, raisins, lead, various beverages, and sesame—products that capitalize on Afghanistan’s agricultural and mineral wealth. On the other hand, the imports from Iran to Afghanistan primarily consist of essential commodities such as diesel, petrol, gas, raw materials for factories, and cement. These imports are crucial for sustaining Afghanistan’s industrial sector and meeting the energy needs of its population.
According to Akhundzada Abdul Salam Jawad, spokesperson for the Ministry of Industry and Commerce, the trade exchange between the two countries in the first nine months of 2024 alone amounted to $2.194 billion. This figure includes $38 million in Afghan exports and a substantial $2.156 billion in imports from Iran. This trade imbalance highlights Afghanistan’s reliance on Iran for key imports, reflecting a relationship where Iran plays a pivotal role in supplying necessary goods that support Afghan industry and infrastructure.
The Afghan Chamber of Commerce and Investment has noted a significant shift in trade patterns this year. Due to ongoing trade challenges with Pakistan, Afghan merchants have increasingly looked to Iran as a reliable partner for trade. This pivot has not only increased direct trade between the two countries but also facilitated the use of Iranian routes to access broader markets. “Afghanistan has expanded both its exports and imports through Iranian ports. Reports indicate that this year, the majority of our trade has been conducted via Iran,” said Jan Agha Naveed, spokesperson for the Chamber of Commerce and Investment.
The use of Iran’s Chabahar Port has emerged as a key element in this enhanced trade relationship. Located on the Gulf of Oman, Chabahar Port provides Afghanistan with strategic access to the global market, bypassing traditional trade routes that may be politically or logistically challenging. Economic experts like Mohammad Asif Stanikzai see this development as mutually beneficial, fostering stronger economic integration and increased regional cooperation. “Our trade relations with Iran, including the use of Chabahar Port, indicate that the ties between the two countries will only strengthen further,” Stanikzai explained.
Iran’s proactive approach to fostering economic partnerships is evident in its efforts to attract Afghan entrepreneurs and private-sector investors. Just three days ago, Iran’s Special Envoy for Afghanistan revealed that Tehran is implementing measures to make investment in large-scale projects more attractive for Afghan businesspeople by offering enhanced facilities and support.
The steady growth in trade between Afghanistan and Iran points to a future where both countries benefit from shared economic interests and complementary resources. The commitment shown by both governments to enhance bilateral trade and cooperation could pave the way for long-term economic stability and prosperity in the region. With an infrastructure that supports cross-border commerce and initiatives aimed at strengthening ties, the economic partnership between Afghanistan and Iran looks set to deepen even further in the years to come.
