Business
Afghanistan and Iran usher in new trade chapter after railway link inaugurated
The Herat-Khawaf railway line, a major infrastructural project between Afghanistan and Iran, was officially inaugurated in the presence of the presidents of both countries, via video link, on Thursday.
For Afghanistan this was an historic moment as the railway line will open a new chapter in trade not only with Iran but also with other regional countries, Europe and the rest of the world.
The railway link is seen as an important step in regional cooperation, in addition to being a way to strengthen economic ties and relations between Afghanistan and Iran.
In his speech, President Ashraf Ghani said he had hoped to attend the inauguration in person but due to COVID-19 restrictions he was not able to.
Ghani said however that the railway line was a critically important project, not only for Afghanistan and Iran but also for the region and beyond.
“The opening of the Khawaf-Herat railway is a great step for the development and economic leap of Iran and Afghanistan,” Ghani said.
He said railway transport is the most efficient, important and cheapest means of transporting goods in Asia.
Iranian President Hassan Rouhani in turn said the opening of the Khawaf-Herat railway line strengthens Afghanistan-Iran ties.
Rouhani said that through this railway link, Afghanistan will be connected to European countries.
“With the Herat-Khawaf railway line, Afghanistan will be connected to European countries and also soon will be connected to the Chabahar railway line,” Rouhani added.
Atta Nasib, Head of Afghanistan Investment Facilitation Unit said that this will help turn Afghanistan into a transit hub.
“This railway between Afghanistan and Iran is a major economic and strategic achievement for both countries, which will connect us to European countries,” said Nasib.
Yamma Shams, General Director of Afghanistan Railway Authority said that it is estimated that eventually Khawaf-Herat railway line will carry 1,600 passengers a day.
The railway line cost $100 million dollars to build and currently spans 130 km in total – 70 km in Iran and 60 km in Afghanistan.
This railway line is strategically important as it gives Afghanistan easy access to Iranian ports at Chabahar and Bandar Abbas, as it connects into Iran’s existing railway grid.
Construction of the railway began in April 2007 and was due to finish in 2009, but was delayed.
However, last week a trial run was held and the first consignment of goods imported from Iran, including 500 tons of cement, successfully arrived in the country.
According to the reports Iran’s exports to Afghanistan are projected to reach $2.7 billion by March next year.
Iranian officials have announced that they are pursuing a plan to establish a trilateral free trade and industrial zone between Iran, Afghanistan, and China aimed at expanding economic cooperation, attracting foreign investment, and strengthening transit routes.
Morteza Zakarian, Director General of Economic and Financial Affairs of Iran’s South Khorasan Province, said the proposal was put forward based on the geographical, mining, and transit capacities of the three countries, and that administrative and expert reviews of the plan are ongoing.
Speaking at a meeting with a Chinese economic delegation at the South Khorasan Special Economic Zone, Zakarian said the Iran-Afghanistan-China route could serve as a secure and sustainable corridor, creating opportunities for expanded trade and economic cooperation among regional countries.
He added that the proposal to establish the trilateral free trade zone was presented by the provincial governor during the Iranian president’s visit to South Khorasan in 2025.
Zakarian stressed that the implementation of the project should not rely solely on government resources, adding that the private sector, particularly Chinese investors, could play an important role in making the plan a reality.
The Director General of Economic and Financial Affairs of South Khorasan highlighted the province’s border location with Afghanistan, mineral resources, workforce, available land for economic projects, and position along major transit routes as key advantages.
He said Afghanistan’s mineral resources, rare elements, and transit position, along with China’s investment capacity, financing potential, and technological expertise, could contribute to this economic cooperation model.
Zakarian also noted the growing presence of Chinese investors in South Khorasan, saying that 12 investment projects by Chinese nationals have so far been approved in the province, with more than half receiving approval over the past two years.
Business
Afghanistan, Uzbekistan discuss expanding economic, trade and investment cooperation
For his part, Khojayev said Uzbekistan is prepared to invest in Afghanistan’s mining sector and increase imports of Afghan meat and cotton.
Afghanistan’s Deputy Prime Minister for Economic Affairs, Mullah Abdul Ghani Baradar, met on Sunday with Uzbekistan’s Deputy Prime Minister, Jamshid Khojayev, and his accompanying delegation at the Chahar Chinar Palace in the Arg to discuss expanding bilateral economic cooperation.
The two sides held talks on strengthening economic, trade, investment, and transit cooperation between Afghanistan and Uzbekistan.
Baradar said stronger and more stable relations between Kabul and Tashkent would not only serve the economic interests of both countries but also contribute to regional stability. He added that the Islamic Emirate is ready to use all available capacities to further strengthen and expand bilateral ties.
He emphasized the effective implementation of the joint action plan between the two countries, describing it as an important step toward boosting economic growth.
Baradar also identified several priority areas for cooperation, including removing obstacles to the movement of Afghan export vehicles to Uzbekistan, granting exemptions for Afghan transit goods arriving from China, Central Asia, and Russia, facilitating exports of Afghanistan’s agricultural products, fresh and dried fruits, food products, and valuable minerals to the markets of Central Asia, Russia, and China, increasing the capacity of transit infrastructure, expanding customs facilities, easing the issuance of visas for Afghan citizens, and enhancing cooperation in the energy sector and joint infrastructure projects.
He said broader cooperation between Afghanistan and Uzbekistan would not only elevate bilateral economic relations but could also serve as a model of good neighborly relations for other countries in the region.
For his part, Khojayev said Uzbekistan is prepared to invest in Afghanistan’s mining sector and increase imports of Afghan meat and cotton.
He also announced Uzbekistan’s readiness to build a $50 million zinc processing plant in Hairatan.
Khojayev added that the Uzbek delegation would work with relevant institutions of the Islamic Emirate in the areas of transport, energy, agricultural development, banking, trade, economic cooperation, and capacity-building for Afghan citizens.
More than 205,000 Afghan citizens traveled to Uzbekistan for trade and business activities during the first six months of 2026, making Afghanistan the largest source of foreign commercial visitors to the country, according to official data.
Uzbekistan’s National Statistics Committee reported that a total of 228,615 foreign nationals visited the country for commercial purposes during the period, with Afghan visitors accounting for the vast majority.
The data showed that 205,937 Afghans arrived in Uzbekistan for business-related activities between January and June, far exceeding the figures recorded from other countries.
Turkmenistan ranked second with 16,322 commercial visitors, followed by Tajikistan with 4,320. The list also included 628 citizens from Kyrgyzstan, 311 from Kazakhstan, 230 from Russia, and 188 from Turkey.
The figures highlight the growing role of Afghan traders and businesses in cross-border economic activities between Afghanistan and Uzbekistan.
Uzbekistan has remained one of Afghanistan’s key trade and transit partners, with both countries seeking to expand economic cooperation, connectivity, and regional trade links.
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