KABUL: The Ministry of Industry and Commerce recently released a data indicating that trade between Afghanistan and Iran during the first four months of this year amounted to $512 million.
This figure highlights the significant economic ties between the two nations. However, a closer examination of the statistics reveals a trade imbalance, with Afghanistan’s exports amounting to a mere $6 million during this period. This trade dynamic prompts us to explore the intricacies of this economic relationship, its challenges, and the potential avenues for growth.
Akhundzada Abdul Salam Jawad, spokesperson for the Ministry of Industry and Commerce, shed light on the specifics of this trade engagement, stating, “Afghanistan’s trade with the Republic of Iran during the first four months of the current year is worth $512 million, of which $506 million are imports and $6 million are exports.” This lopsided trade pattern, with imports significantly outweighing exports, underscores the need for strategic interventions.
One prevalent concern among business circles is the limited support for boosting Afghanistan’s exports. Many businessmen emphasize that collaboration between the Islamic Emirate and Iran is crucial to enhance the export ecosystem. Mahbub Ullah Mohammadi, a businessman, highlighted the need for agreements that promote Afghanistan’s exports within the Iranian market and facilitate the use of transit routes for broader export opportunities. The unresolved issues between the two countries are holding back trade potential.
Financial matters also play a role in this trade equation. Zalmy Azimi, another businessman, pointed out issues related to money transfers in the export field. Finding solutions to these financial hurdles could address not only the export challenges but also contribute to overall trade ease.
The Chamber of Commerce and Investment underlines Iran’s potential as a lucrative market for Afghan exports. They identified commodities such as dried fruits and marble as products that hold promise for export. However, they emphasized the high taxes imposed on these goods. Mohammad Yonis Momand, the first deputy of Commerce and Investment, expressed the desire for Iran to extend preferential tariffs to Afghan businessmen, similar to the concessions offered by Pakistan and China. Such tariff adjustments could substantially boost Afghanistan’s export capacity.
Looking at the bigger picture, the Ministry of Industry and Commerce’s data underscores that the annual trade volume between Afghanistan and Iran is around two billion dollars. There are concerted efforts to scale this figure to an ambitious ten billion dollars. Achieving this goal necessitates addressing the existing trade imbalance, streamlining export procedures, and negotiating preferential tariffs to incentivize Afghan exports to Iran.
