Iran and Afghanistan have only a limited five- to seven-year window to establish themselves as a key regional transit corridor before China and Pakistan seize the opportunity, according to a report released on Tuesday by the Iran Chamber of Commerce’s research center.
The report said the success of the proposed transit projects would depend on ensuring lasting security in Afghanistan, attracting international investors – particularly from China – and easing sanctions-related obstacles facing Iran.
“The cost of inaction is far greater than the cost of joint action,” the report said, adding that trade between Iran and Afghanistan had continued to expand during border tensions.
Historical data showed economic pragmatism had repeatedly prevailed over ideological differences between the two neighbors, the report added.
According to the latest data from Iran’s customs Administration, Iranian exports to Afghanistan totaled about $2.45 billion, making Afghanistan one of the top five destinations for Iran’s non-oil exports.
In contrast, Iran’s imports from Afghanistan stood at just $66 million, highlighting a sharp trade imbalance and a surplus of roughly $2.33 billion in Iran’s favor.
Bilateral trade between the two countries has grown by 37.5% in recent years, with officials aiming to raise total trade volume to $10 billion.