Bilateral trade between Afghanistan and Pakistan rose by 25 percent in the fiscal year 2024–25, reaching $1.998 billion, up from $1.603 billion the previous year, a Pakistani official told local media.

The growth was largely driven by a 31 percent increase in Pakistani exports, which rose to $1.391 billion, while imports from Afghanistan grew by 13 percent, reaching $607 million, The Nation reported.

Among Pakistan’s top-performing exports was sugar, which saw a staggering 4,333 percent increase, climbing from $5.93 million in FY2023–24 to $262.77 million.

Other key exports included construction materials, textiles, and pharmaceuticals.
However, some products—including rice, eggs, salts, electrical equipment, and footwear—recorded year-on-year declines of between 17 and 99 percent.

On a monthly basis, June 2025 marked a strong finish, with exports rising 90 percent year-on-year to $142 million, up from $75 million in June 2024. Imports, however, fell by 29 percent year-on-year and by 54 percent compared to May 2025.

Overall, June 2025 bilateral trade stood at $158 million, reflecting a 62 percent year-on-year increase and a 9 percent rise month-on-month, suggesting momentum in trade ties despite fluctuations in certain import categories.

Analysts attribute the surge to improved regional connectivity, enhanced trade facilitation, and greater demand for Pakistani goods in Afghan markets.

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.