Posted on 30 Aug 2021
Iran’s exports to Afghanistan stood at $728 million in the first four months of the current fiscal year (March 21-July 22), according to Hossein Salimi, chairman of the Iran-Afghanistan Chamber of Commerce.
Iron and steel rods, some agricultural products, and foodstuff are among the main products exported from Iran to the neighboring country, Kallanish notes. Exports from Iran to Afghanistan have declined more than 85% due to the increasing tensions in the country, the portal of Iran Chamber of Commerce, Industries, Mines and Agriculture (ICCIMA) has reported.
Afghanistan was an important market due to USD flow to US-sanctioned Iran. Now the US is expected to cut aid to Afghanistan since it has fallen under Taliban control. This will reduce USD liquidity and consequently drive up inflation in the country.
This year it has been announced on various occasions that Iran planned to invest more than $5 billion in Afghanistan’s road and rail transportation infrastructure.
Among the projects, the largest was the 656 km long Herat-Mazar-i Sharif railroad with almost $2.1 billion investment.
The Iranian Steel Producers Association (ISPA) has announced in June that Esfahan Steel Company (ESCO) had inked a $4.3 billion deal to export rail tracks to Afghanistan.
However, since the latest political turmoil started at the beginning of August in Afghanistan, export volumes declined to 15% of previous levels and future trade is unpredictable since the Sunni Taliban took over the control of the country.
Shia Iran had emphasized railway and road projects in Afghanistan to transport its export goods to its leading export partner China and to other Turkic countries such as Kazakhstan and Uzbekistan.
Source:Kallanish
