Afghanistan redirects trade to Iran, Central Asia as tensions with Pakistan rise

Afghanistan is expanding the use of trade routes through Iran and Central Asia as border tensions with Pakistan persist, officials said, with freight increasingly diverted away from Pakistani crossings and ports.

Commerce ministry spokesman Abdul Salam Jawad Akhundzada said Afghan trade with Iran reached 1.6 billion dollars over the past six months, exceeding the 1.1 billion dollars exchanged with Pakistan. He said incentives offered by Tehran at the Indian-backed port of Chabahar have encouraged traders to reroute cargo to avoid recurring closures on Pakistan’s frontier.

Iran has deployed upgraded handling equipment and X-ray scanners at Chabahar and is offering Afghan freight a 30 percent reduction in port tariffs, a 75 percent cut in storage fees, and 55 percent off docking charges, Akhundzada said. “The facilities at Chabahar have reduced delays and given traders confidence that shipments will not stop when borders close,” he added.

Deputy Prime Minister for Economic Affairs Mullah Abdul Ghani Baradar earlier issued a three-month deadline for traders to settle Pakistan-linked contracts and shift to alternative corridors. He accused Islamabad of treating “commercial and humanitarian matters as political leverage” and directed ministries to halt clearance of Pakistani medicines, citing concerns about quality.

Shipments through Turkmenistan, Uzbekistan and Tajikistan are also rising, according to Afghan officials, who point to new transit agreements, lower border costs, and expanded Afghan trade offices at Milak and Zahedan, Iran’s key crossing points.

Pakistan remains the fastest route to the sea, with trucks able to reach Karachi port in about three days. Pakistani exports to Afghanistan were close to 1.5 billion dollars in 2024. Islamabad says its recent border closures are aimed at limiting militant movement, a claim Kabul rejects.

Defence Minister Khawaja Asif told Geo News that Afghanistan’s decision would not harm Pakistan economically. Commerce Minister Jam Kamal Khan told Reuters that Islamabad would not compromise on security requirements.

India, which operates terminals at Chabahar, has increased engagement with Taliban authorities. In October, Washington granted New Delhi a six-month sanctions waiver to continue running the port.