TEHRAN- South Khorasan province, in the east of Iran, has emerged as a key gateway in Iran’s trade with Afghanistan, with a significant share of Iranian exports to its eastern neighbor transiting through the province’s borders, head of the Chamber of Commerce of Birjand (center of the province), stated.

As published by the news portal of Iran Chamber of Commerce, Industries, Mines, and Agriculture (ICCIMA), Alireza Khamehzar, chairman of the Birjand Chamber of Commerce, said a large volume of goods exported from South Khorasan is destined for the Afghan market, adding that an important portion of Iran’s total exports to Afghanistan is transported through the province’s border crossings.

He said South Khorasan has secured a “respectable position” in supplying the needs of the Afghan market, underscoring the province’s growing importance in bilateral trade.

Khamehzar noted that regional developments and restrictions on some of Afghanistan’s trade routes have drawn Kabul’s attention more strongly toward the Iranian market.

He described the situation as a major economic opportunity for Iran, particularly for South Khorasan, which shares a long border with Afghanistan.

He said that in trade, three factors – speed, accuracy and cost reduction – are decisive. Improving infrastructure, including transport and border facilities, could significantly reduce shipping times and enhance the competitiveness of exports from South Khorasan.

South Khorasan Province's economy is driven by a dynamic combination of mineral wealth, agricultural production, and strategic cross-border trade. The province is a national mining heartland, holding an estimated 4 billion tons of mineral resources, and is home to Iran's largest coal reserves in Tabas as well as valuable deposits of gold and lithium in Nehbandan. The strategic focus is shifting from raw extraction to value-added processing, with new factories producing iron concentrate and magnesium oxide to maximize economic returns.

Agriculturally, the province is renowned as the world's primary producer of barberry and a top-tier cultivator of high-quality saffron. These products, along with items like pistachios and jujube, are key exports.

Crucially, the province's 331-kilometer border with Afghanistan serves as a powerful engine for trade.

This strategic location has spurred major growth in transit and has led to plans for a trilateral free zone involving Iran, Afghanistan, and China to further leverage the region's economic capacities.

As announced by the Islamic Republic of Iran Customs Administration (IRICA), Iran has exported non-oil commodities valued at $1.66 billion to Afghanistan during the first eight months of the current Iranian calendar year (March 21-November 21, 2025).

According to IRICA, Afghanistan was Iran’s fifth top non-oil export destination in the mentioned period.

On November 27, Iran’s minister of industry, mining, and trade, during a meeting with his Afghan counterpart in Istanbul, emphasized the removal of trade barriers between the two countries.

During the meeting between Nooruddin Azizi, the minister of commerce and industries of Afghanistan, and Seyed Mohammad Atabak, the minister of industry, mining, and trade of Iran, the two sides discussed and exchanged views on the development of trade cooperation between Iran and Afghanistan.

Atabak, in this meeting, emphasized the necessity of expanding trade relations between the two countries and called for the removal of trade barriers between them.

Azizi, for his part, stated: “Border trade with Iran is on the agenda, and we call for the facilitation of trade in this regard.”

In this meeting, the two sides emphasized the removal of trade barriers and efforts to increase the volume of trade between Iran and Afghanistan, and understandings were reached in this regard.

The Iranian minister, had traveled to Istanbul to participate in the fifth meeting of ECO trade ministers.

Mahmoud Siadat, Head of the Iran-Afghanistan Joint Chamber of Commerce, has identified the development of transit and the smooth flow of customs procedures as one of Afghanistan's priorities, and said: "Afghanistan is ready for a leap forward and must prepare the ground by relying on the transfer of knowledge and modern technology; in this regard, Iran can be a good helper."

Spoking about social and cultural commonalities that should form the basis of agreements and cooperation, Siadat sated that a follow-up mechanism must be established, and efforts must be results-oriented, adding, “Perhaps we reach good agreements during negotiations and consultations, but what matters is the successful implementation of projects and achieving results.”

Also, Hamidreza Salehi, the Secretary-General of the Federation for the Export of Energy and Related Industries of the Tehran Chamber of Commerce, Industries, Mines, and Agriculture (TCCIMA), noting that suitable infrastructure for a leap in relations between Iran and Afghanistan has not been provided, emphasized: "The private sectors of the two countries must pressure their governments to focus on necessary areas and provide the infrastructure."

He believes, “The capacities in both countries are high, and we must be able to meet each other's needs through proper needs assessment.”

Salehi evaluated Iran's LPG production as being at a high level and added: "The groundwork for LPG exports exists, and we know that Afghanistan has an urgent need for it. Therefore, the best decision is to strive for a proper needs assessment and to plan for timely export and import."

He deemed it necessary to define a framework for joint investment in production through the cooperation of the private sectors of Iran and Afghanistan, relying on chambers, associations, and joint chambers.

During a meeting between members of the Iranian Chamber of Commerce, Industries, Mines, and Agriculture (ICCIMA)'s trade delegation and the head of the Afghanistan Chamber of Commerce and Investment, in Kabul on November 17, the need to develop relations between the chambers of both countries was highlighted, and major Iranian companies were invited to invest in Afghanistan.

Members of the Iranian Chamber's trade delegation, accompanied by the Iranian ambassador in Kabul, met with the head of the Afghanistan Chamber of Commerce and Investment. This meeting focused on three key areas in Iran-Afghanistan relations: investment, exports, and transportation.

In all three of these areas, the two countries have not succeeded in having continuous and stable cooperation; therefore, it was emphasized that the chambers of commerce of the two countries should become active in these fields.

Furthermore, it was stressed that currently, numerous companies from various countries have invested in Afghanistan; however, Iran's presence in the country is very limited. This is not satisfactory for the Afghan side.

EF/MA