Iran exported $510 million in non-oil goods to Afghanistan between March 21 and June 21, making it Iran’s fifth-largest export destination, according to the Iran Customs Administration.

Officials and business leaders emphasized the growing trade relationship was key to regional stability. At a recent Iran-Afghanistan trade conference, ICCIMA’s deputy head, Payam Baqeri, called for a deeper economic partnership, citing shared history and complementary resources—such as Iran’s industrial infrastructure and Afghanistan’s mineral wealth.

Baqeri also highlighted efforts to expand trade through joint ventures, workforce development, and easing trade barriers. Meanwhile, Iran’s Agriculture Minister expressed readiness to boost cooperation in agricultural services and called for a joint committee to advance bilateral ties.

A technical meeting in Kabul on April 10 reviewed progress on the Tehran-Kabul economic pact, focusing on trade, transit, mining, and agriculture.

Bilateral trade between the two countries surged by 84% in 2024, reaching $3.2 billion.

Iran exported $3.14 billion worth of goods—mostly oil products, steel, food, and construction materials—while Afghanistan’s exports to Iran, mainly raw and agricultural products, grew by 116% to $54 million.

Azerbaijan Railways Chairman Rovshan Rustamov met this week with Afghanistan’s Deputy Prime Minister for Economic Affairs, Abdul Ghani Baradar, in Baku to discuss the expansion of cargo transportation routes between South Asia, the Caucasus, and Europe.

The meeting, which took part during Baradar’s visit to Azerbaijan, signals a deepening of economic cooperation as Afghanistan seeks greater integration into regional and transcontinental logistics networks, including the strategically vital Middle Corridor.

According to a statement issued by Azerbaijan Railways, the parties explored ways to enhance multimodal transport cooperation, with a particular focus on facilitating Afghan exports via the Baku Port.

Afghan representatives emphasized the need to accelerate the movement of goods to international markets and called for technical and logistical support from Azerbaijan.

In response, Rustamov expressed Azerbaijan Railways’ readiness to deliver Afghan-origin cargo to European markets, highlighting Baku’s growing role as a regional logistics hub.

“Azerbaijan stands ready to support Afghanistan’s economic integration by providing reliable and efficient access to international corridors,” Azerbaijan Railways stated.

The Middle Corridor and Afghanistan’s Trade Ambitions

The Middle Corridor, also known as the Trans-Caspian International Transport Route (TITR), connects China to Europe through Central Asia, the Caspian Sea, the South Caucasus, and Turkey.

Azerbaijan plays a critical role in this corridor, leveraging its Baku International Sea Trade Port, Baku-Tbilisi-Kars railway, and regional logistics zones.

Afghanistan, a landlocked country with limited direct access to global markets, has long sought alternatives to its dependency on Pakistan’s ports.

In recent years, it has aimed to integrate more deeply with regional trade initiatives linking Central Asia, the Caucasus, and Europe—especially after the re-establishment of the Islamic Emirate in 2021 and renewed focus on self-reliance and connectivity.

Despite ongoing political and financial challenges, Afghan exports of dried fruits, minerals, carpets, and medicinal plants have continued to find demand in international markets.

Expanding access to ports via multimodal routes through Uzbekistan, Turkmenistan, and the Caspian Sea could significantly reduce costs and transit times for Afghan producers.

Geopolitical Implications

The meeting between Afghan and Azerbaijani officials underscores the increasing geoeconomic importance of the Middle Corridor amid shifting global supply chains. For Baku, deeper logistics cooperation with Afghanistan presents a chance to strengthen ties with South and Central Asia, diversify transit flows, and cement its position as a bridge between East and West.

For Kabul, the success of such initiatives could not only bolster trade but also enhance its standing in regional diplomacy, offering an avenue for engagement despite a lack of formal international recognition.

Mullah Abdul Ghani Baradar, Deputy Prime Minister for Economic Affairs, met on Friday with the Prime Minister of Kazakhstan Olzhas Bektenov in Khankendi, Azerbaijan, where both sides discussed political, economic, and trade issues between Afghanistan and Kazakhstan, the Afghan deputy PM’s office said in a statement.

At the meeting, the Prime Minister of Kazakhstan announced that his country will soon begin the Torghandi-Herat railway line project in Afghanistan, with an investment valued at $500 million.

Bektenov also expressed Kazakhstan’s interest in investing in Afghanistan’s mining sector and said that Kazakhstan is ready to increase imports of Afghan fruit and facilitate Afghanistan’s exports through Kazakh territory.

He emphasized that Kazakhstan is one of the top ten countries with the highest trade relations with Afghanistan and they are committed to expanding these relations.

Bektenov also stated that his country maintains good relations with Afghanistan, and to strengthen these ties, the Kazakh Foreign Minister will soon visit Kabul.

During the meeting, Abdul Ghani Baradar described Kazakhstan as an important and reliable regional partner for Afghanistan and called the appointment of Kazakhstan’s special representative for Afghanistan a valuable step.

Baradar expressed gratitude to Kazakhstan for supporting Afghanistan in international forums and said Afghanistan serves as an important transit route for Kazakhstan to the Middle East and South Asia.

According to him, Kazakhstan can connect Afghanistan to Europe, and therefore, Kazakhstan should take advantage of existing opportunities in investment, trade, railway projects, and transit affairs.

He also considered the signing of the agricultural products preservation and quarantine agreement between the two countries important for increasing bilateral trade volume to $3 billion.

Baradar stressed facilitating visa issuance for Afghans and the opening of Afghan bank accounts in Kazakhstan’s Zaman and Freedom Banks.

He assured that Afghan banks are fully prepared for these collaborations.

Baradar noted that Afghanistan has initiated the establishment of an operational company for imports and exports via railways to expand bilateral trade and will soon introduce it to Kazakhstan.

He added that a draft agreement on international transport and transit between the two countries has been prepared, serious discussions are underway regarding tariff reductions on transit goods, and cooperation agreements in industrial, trade, and transport sectors with Iran, Kazakhstan, and Turkmenistan have been formulated, with Kazakhstan’s cooperation being significant in these areas.