Afghanistan and Iran are exploring formal mechanisms to regulate Afghan labor in Iran through legal work permits, according to a statement from the Iranian Embassy in Kabul on Sunday.

Alireza Bikdeli, Iran’s acting ambassador in Kabul, held talks with Abdul Manan Omari, Afghanistan’s Acting Minister of Labor and Social Affairs, to advance bilateral cooperation on labor and social affairs.

The two sides emphasized the need to finalize a memorandum of understanding (MoU) between Iran’s Ministry of Cooperatives, Labor, and Social Welfare and Afghanistan’s Ministry of Labor and Social Affairs.

The proposed MoU would establish a framework under which nationals from both countries could work legally, provided they obtain official work permits issued by employers. These permits would form the basis for visa issuance and legal residency status for Afghan workers in Iran.

The move comes amid increasing deportations of undocumented Afghan migrants by Iran, raising humanitarian and economic concerns on both sides of the border.

Iranian officials have acknowledged the critical role Afghan labor plays in the country’s economy. The Tehran Construction Association recently warned that the ongoing departure of Afghan workers is severely impacting the construction sector. According to Iraj Rahbar, head of the association, over 50% of construction workers in Tehran were Afghan nationals prior to the recent wave of deportations.

Observers say a formalized labor agreement could help stabilize workforce needs in Iran while providing legal protections and predictable income for Afghan workers, many of whom have historically been vulnerable to exploitation due to their undocumented status.

Both governments are expected to continue negotiations on the MoU in the coming weeks.