Afghanistan-Iran Trade Hits $5 Billion, Fuels Provincial Growth

The announcement highlights the growing economic ties and the expanding role of cross-border commerce in Afghanistan's provincial markets.

The figure was disclosed at an event in Herat province, where local and Iranian officials gathered to mark the 47th anniversary of Iran's Islamic Revolution.

At the ceremony, Iran's Consul General in Herat, Ali Reza Marhamati, emphasised the dramatic increase in trade flows, noting: "Last year, we transported about 5,000 tons of goods per month, and now this figure has reached more than 90,000 tons." This jump reflects both enhancements in logistics infrastructure and greater facilitation of customs and border procedures between the two nations.

According to the Herat Chamber of Industries and Mines, the expanding commerce is driven largely by the Herat-Khaf railway, which has significantly eased the movement of goods. Local officials described Iran as Afghanistan's largest trading partner, with the bulk of commercial goods either imported directly from Iran or routed into Afghanistan through Iranian territory - a trend that has become especially important in light of disruptions to trade routes with Pakistan.

Economic analysts in the region say the expanding trade corridor is helping provincial economies absorb supply chain shocks and stabilise local markets. One analyst, Sayed Agha Farzan, said: "It is beneficial for both countries because we need to import certain raw materials from Iran, and Iran also needs raw materials available in Afghanistan. The border we share with Iran is considered the most independent economic border between the two countries."

This uptick in trade comes amid broader efforts by provincial authorities to diversify economic partnerships and strengthen commercial links beyond traditional channels. For many provincial traders, Iranian markets now serve as key hubs for importing machinery, construction materials and consumer goods, while small amounts of Afghan products continue to find buyers across the border.

Herat's trade boom also reflects a pragmatic response to shifting regional dynamics. With border crossings with Pakistan remaining closed or restricted, Afghan traders have increasingly turned to Iranian and Central Asian routes for moving goods. The growth in bilateral trade thus serves as both a lifeline for provincial businesses and a signal of Afghanistan's adaptation to changing economic realities.

Local officials and business leaders are now calling for continued investment in infrastructure, from rail links to storage facilities at border points, to sustain and further expand this trade momentum. They argue that deepening these economic connections could bolster employment and generate revenue for provinces long affected by conflict and limited market access.

As Afghanistan continues to navigate its economic challenges, the strengthening of trade with neighbors like Iran appears to offer a tangible avenue for provincial growth, even as broader political and security uncertainties persist across the country.

- ANI