Business
Afghanistan gets its first shipment from Iran by railway
The first shipment of Iranian products arrived this week in Afghanistan via a new $75 million railroad that links Iran’s eastern city of Khaf to Herat.
This week’s shipment was dispatched as a trial run to detect possible problems on the route, Iranian media reports stated.
Construction of the railway began in April 2007 and was due to finish in 2009, but was delayed.“The first consignment of goods imported from Iran which included 500 tonnes of cement entered the country [Afghanistan] via the Herat-Khaf railway,” an Afghan official from Herat said.
The 130 km long Khaf-Herat railway is strategically important as it gives Afghanistan easy access to Iranian ports at Chabahar and Bandar Abbas.
According to the Afghanistan Railway Authority, the railway forms one of its most important regional connectivity projects, as it will provide the land-locked country with a link to Iranian ports and rail networks, Turkey, and Europe, Iranian media stated.
Freight traffic is predicted to be around two million tonnes a year, with imports to include oil, construction materials, and food and exports to include grain, dried fruit, plants and medical items.
The operation of a passenger service via this railway is also being considered. According to initial studies, passenger traffic could reach 321,000 passengers in a year.
Iran’s Foreign Ministry spokesman Saeed Khatibzadeh said that “while the Khaf-Herat railway is to be inaugurated in the coming days as a symbol of great cooperation between the two countries, it is inevitable to take care of the suspicious actions of the ill-wishers of our relations [between Tehran and Kabul]”.
Mehr news agency reported that Iran’s exports to Afghanistan are projected to reach $2.7 billion by March next year.
Pakistan’s kinno exports remain far below potential as regional tensions, high freight costs and weak government support continue to choke the citrus trade.
Despite being a leading global citrus producer, Pakistan is expected to export just 400,000–450,000 tonnes of kinno in the 2025–26 season, compared with an estimated capacity of 700,000–800,000 tonnes.
Exports in 2024–25 stood at around 350,000–400,000 tonnes, mainly to Russia, the UAE, Saudi Arabia, Afghanistan, Indonesia and Central Asia. While better fruit quality this season has raised hopes, persistent crossing disruptions—especially with Afghanistan—and transport bottlenecks have offset gains.
Growers say prices have collapsed sharply, forcing panic sales. Rates for large kinno have fallen from over Rs120 per kg early in the season to as low as Rs75, while smaller fruit is selling for Rs35–40 per kg amid weak demand.
Industry leaders warn the crisis is crippling processing units and jobs. More than 100 factories reportedly failed to open this season, with dozens more shutting down as exports stall. Cold storages in Sargodha are nearly full, putting fruit worth millions of dollars at risk of spoilage, while growers fear losses of up to Rs10 billion.
Exporters are urging the government to urgently resolve issues, subsidise logistics, and help access alternative markets, warning that prolonged inaction could devastate farmers, workers and the wider economy.
Iranian President Masoud Pezeshkian has said that Tehran will facilitate trade and economic exchanges with Afghanistan, including easing procedures at customs and local marketplaces.
He made the remarks during a televised interview following his visit to South Khorasan province, which shares a border with Afghanistan.
Pezeshkian, in a separate event addressing local business leaders, highlighted the province’s strategic advantages, citing its rich mineral resources, proximity to neighboring countries such as Afghanistan and Pakistan, and access to the ocean via the Chabahar port. He described the region as “a golden opportunity not found everywhere,” emphasizing its potential for economic growth and cross-border commerce.
A Kazakh delegation led by the Deputy Minister of Finance of Kazakhstan met with Sediqullah Khalid, First Deputy Governor of Da Afghanistan Bank, to discuss ways of strengthening banking and economic cooperation between the two countries.
According to a statement issued by Da Afghanistan Bank, Khalid said the central bank is keen to establish regular and effective banking relations with Kazakhstan as part of broader efforts to expand bilateral trade.
He noted that enhanced banking cooperation would help facilitate trade, investment, and wider economic interaction between Afghanistan and Kazakhstan, while also contributing to financial stability at the regional level.
Members of the Kazakh delegation also emphasized the importance of developing banking and economic ties and expressed their readiness to expand joint cooperation.
The two sides further agreed to establish technical committees from both countries to hold expert-level discussions and advance practical steps for cooperation.
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