Iran's trade with Afghanistan expected to decline

Business Materials 12 August 2020 12:02 (UTC +04:00)
Iran's trade with Afghanistan expected to decline

TEHRAN, Iran, Aug.12


Iran's trade with Afghanistan is expected to decline amid coronavirus spread, Head of Iran-Afghanistan Joint Chamber of Commerce Hossein Salimi told Trend.

"Iran's trade relations with Turkey and Iraq has been cut to due to coronavirus, and the only trade was done via Afghanistan borders and it also stopped later," Salimi said.

"The trade turnover between Iran and Afghanistan in the current Iranian year [started March 20, 2020] would be possibly similar to last Iranian year [started March 21, 2019], as despite the problems caused by the pandemic, Iran's other borders are open," he said. "Iran's Zahedan border has been recently opened, and in past two weeks, Iranian trucks are transporting export goods to Afghanistan and there was no problem in this regard."

"However, it is also possible that there will up to 5-percent decline in trade, and the value of exports to Afghanistan will be less than $3 billion," the official said.

"Iran exports $3.2 billion worth of goods to Afghanistan per year, and this amount may decrease to $2.9 billion," he added adding that 40 percent of imports to this country account for Iran, which mainly exports food items, construction material and fuel to Afghanistan.

"Iran seeks to increase trade with Afghanistan and started investment on mines in two projects in Afghanistan. There are rich and unique mines in Afghanistan that could generate incomes in the region. In addition, Iran launched soft drink production line that is operating," he noted.

He went on to say that Chabahar Port plays an important role in the trade operations with Afghanistan and supplying cheap basic goods.

"Thus, Afghanistan's side is ready to invest in the port to set up industrial zones, which will increase employment in Iran and, in particular, in Sistan and Baluchestan Province," Salimi added.