Iran and Afghanistan seek to expand trade and regional railway connectivity

Iran and Afghanistan are pursuing expanded economic and trade cooperation, with both nations aiming to increase bilateral trade to $10 billion. An Iranian parliamentary delegation recently visited Kabul to facilitate private sector connections, resulting in the signing of 28 memorandums of understanding valued at approximately $451.8 million.

A key focus of this cooperation is the development of regional transport and logistics infrastructure. During a meeting on the Trans-Afghan Corridor in Astana, Kazakhstan, Iran’s Minister of Roads and Urban Development, Farzana Sadeq, proposed extending Afghanistan’s railway network from Herat to the Termez border in Uzbekistan. This extension aims to link Central Asia and China to international markets via the Chabahar Port.

Other strategic projects under discussion include potential railway connections linking Afghanistan to Türkiye and Europe, as well as access to the Caucasus and the Black Sea. While Afghanistan has expressed readiness to welcome investment for transit infrastructure, analysts note that achieving high trade targets will require significant improvements in Afghan export capacity and the standardization of its products to balance the current trade deficit.