A member of the board of directors of the Iran-Afghanistan Joint Chamber of Commerce has stated that Iran's share of foreign investment in Afghanistan is negligible, while the total value of investments from other countries in Afghanistan exceeds $100 billion.
To enhance Iranian investment in Afghanistan, a consortium has been established aimed at fostering collaboration between Iranian and Afghan traders in mining ventures, Hossein Mohammadian said on Sunday.
Regarding investment security in Afghanistan, Mohammadian noted that significant improvements have been made in recent years. "Today, we see the presence of Chinese, Uzbek, Turkish, and even some European investors in this country," he added.
Discussing the functionality of the Khaf-Herat railway line in bilateral trade, he explained that the railway is primarily designed for importing goods from Afghanistan to Iran, as exporting goods from Iran to Afghanistan via rail is economically unfeasible compared to land routes.
"The main purpose of this railway is to facilitate access to Afghanistan's mineral resources," he said.
“Herat is home to substantial iron ore reserves, but Afghanistan lacks the infrastructure to process these materials. The railway will enable the transportation of Afghanistan's iron ore reserves to Iran, along with significant copper reserves, for processing.”
Once processed in Iran, these materials can either be consumed domestically or re-exported in collaboration with Afghan traders, he said.
Mohammadian also highlighted the potential for the Khaf-Herat railway to eventually connect to the railway connecting Afghanistan to China, enabling further regional trade connectivity.