Iran and Afghanistan Strengthen Economic Ties Through Regional Cooperation

TEHRAN (Iran News) Speaking at the joint meeting, Mohammadreza Tavakkolizadeh, President of the Mashhad Chamber of Commerce, emphasized the strategic potential of aligning the economic and political capacities of Khorasan Razavi and Herat. “This partnership offers a promising path to expanding bilateral relations,” he stated, urging all parties to capitalize on existing opportunities to build a sustainable framework for cooperation.

A major highlight of the discussions was the Khaf–Herat railway project, which officials described as a vital infrastructure link connecting Afghanistan to Europe via Iran. Tavakkolizadeh stressed that Afghanistan’s lack of access to open seas makes such projects critical for integrating the country into global trade routes. “Not only will this railway open new horizons for Afghanistan’s economy, but it will also significantly enhance trade flows between our two nations,” he said.

He also noted that with carefully planned financial and transactional mechanisms, stronger bilateral financial frameworks could be developed. Tavakkolizadeh underlined the vast economic potential that exists in both countries and hailed the signing of a new memorandum of understanding (MoU) between the Mashhad Chamber and Herat’s Chamber of Agriculture as a cornerstone for future cooperation, particularly in agriculture.

Gholamhossein Mozaffari, Governor of Khorasan Razavi, echoed the urgency of smoothing trade processes at key border points. “Delays at the Dogharoun crossing are unacceptable — even a single hour of holdup can affect the private sector,” he warned. He announced that the infrastructure is ready for 24/7 operations at the border.

Mozaffari reiterated that enhancing ties with neighboring countries is central to Iran’s foreign policy, noting that while Afghanistan already holds a special status among Iran’s 15 neighbors, the current trade volume falls short of expectations. He called for coordinated efforts to scale up economic exchanges and advocated for the creation of joint consortia and the development of a shared free trade zone spanning both sides of the border.

The governor also highlighted Afghanistan’s water resources as an advantage, proposing that Iran could source part of its agricultural needs from Afghanistan and re-export processed goods to international markets.

Nooruddin Ahmad Islamjar, the Governor of Herat, welcomed the growing economic ties and pointed to recent achievements — including an agreement to allow the daily crossing of 2,000 trucks via Dogharoun and the near-completion (85%) of the Khaf–Herat railway. However, he also raised concerns over the closure of Afghan currency exchange accounts in Iran, which he said posed a serious threat to commerce and transit operations.

Islamjar invited Iranian investors to tap into Herat’s secure and resource-rich environment, particularly in agriculture and livestock. “Our natural water reserves enable us to grow Iranian-demanded crops and raise quality livestock for export,” he said.

Mahmoud Sayadat, President of the Iran-Afghanistan Joint Chamber of Commerce, proposed deeper institutional cooperation. He called for a structured connection between the business organizations of Khorasan Razavi and Herat, especially in mining and agriculture — sectors ripe for bilateral investment. He also noted Afghanistan’s interim government’s openness to supporting industrial cooperation, which could lead to significant integration of Iranian expertise and investment.

Younes Qazizadeh, head of Herat’s Chamber of Commerce and Investment, stressed that balanced trade between the two nations is achievable, provided that relevant authorities offer consistent and practical support. He highlighted the improvements in Afghanistan’s infrastructure and the streamlining of bureaucratic procedures, which now make the country more attractive to foreign investors.

Qazizadeh emphasized the importance of the Dogharoun-Islam Qala customs hub and the Khaf–Herat railway as game-changing developments. He invited Iranian investors to participate in projects spanning agriculture, mining, manufacturing, and tourism, and called for expanded academic and cultural partnerships to create job opportunities for Afghanistan’s youth.