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Afghanistan shifts trade to Iran route to avoid Pakistan closures

Afghanistan shifts trade to Iran route to avoid Pakistan closures
People wait near the closed gate at the Spin Boldak border crossing with Pakistan, after the border was closed following clashes between Afghan and Pakistani forces, in Kandahar province, Afghanistan, on October 23, 2025. (AP/File)
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Afghanistan shifts trade to Iran route to avoid Pakistan closures

Afghanistan shifts trade to Iran route to avoid Pakistan closures
  • Iran offers steep discounts at its port of Chabahar
  • Central Asia routes grow faster than Pakistan corridor

KABUL: Landlocked Afghanistan is leaning more heavily on trade routes through Iran and Central Asia to reduce dependence on Pakistan, officials said, as tension between the neighbors escalates, with their border closed in recent weeks.

Afghanistan’s reliance on Pakistan’s ports has long given Islamabad leverage to press Kabul over Pakistani militants sheltering across the border.

But Afghanistan is increasingly making use of Iran’s concessions to shift freight to its Indian-backed port of Chabahar, bypassing Pakistan and avoiding recurring border and transit disruptions.

“In the past six months, our trade with Iran has reached $1.6 billion, higher than the $1.1 billion exchanged with Pakistan,” Abdul Salam Jawad Akhundzada, a spokesman for the commerce ministry, told Reuters.

“The facilities at Chabahar have reduced delays and given traders confidence that shipments will not stop when borders close.”

THREE-MONTH DEADLINE

Traders have three months to settle contracts in Pakistan and shift to other routes, said Mullah Abdul Ghani Baradar, Afghanistan’s deputy prime minister for economic affairs.

Accusing Islamabad of using “commercial and humanitarian matters as political leverage,” he said Afghanistan would not mediate disputes after the deadline and ordered ministries to stop clearing Pakistani medicines, citing “low-quality” imports.

The biggest shift is to Chabahar, used since 2017 under a transit pact with Iran and India. Afghan officials say incentives from tariff cuts and discounted storage to faster handling are drawing more cargo south.

Iran has installed updated equipment and X-ray scanners, while offering Afghan cargo a 30 percent cut in port tariffs, 75 percent off storage fees and 55 percent off docking charges, said Akhundzada, the commerce ministry spokesman.

PAKISTAN SEES NO HARM FROM AFGHAN DECISION

Afghanistan’s decision would cause no economic harm to Pakistan, Defense Minister Khawaja Asif told Geo News.

“Afghanistan can trade through any port or country,” he said.

However, Commerce Minister Jam Kamal Khan told Reuters, “We cannot compromise on security.”

India has stepped up engagement with Afghanistan’s ruling Taliban, hosting acting foreign minister Amir Khan Muttaqi and broadening humanitarian assistance.

It runs key terminals at Chabahar, which it sees as a strategic link to Afghanistan and Central Asia. In October, the United States gave New Delhi a six-month sanctions waiver to keep running the port.

CENTRAL ASIA CORRIDORS EXPAND

Afghanistan has boosted shipments through Turkmenistan, Uzbekistan and Tajikistan, routes it says are growing faster than Pakistan’s.

As advantages Akhundzada cited new transit deals, lower border costs and offices at Milak and Zahedan, Iran’s main border crossing points for Afghan trade.

But Pakistan is still the fastest route to the sea, with trucks reaching its southern port of Karachi in three days. Its exports to Afghanistan neared $1.5 billion in 2024.

Islamabad says closures curb militant movement; Kabul denies providing safe haven to the militants.


Islamabad, US discuss boosting economic ties as American firms eye Pakistan investments

Islamabad, US discuss boosting economic ties as American firms eye Pakistan investments
Updated 15 November 2025

Islamabad, US discuss boosting economic ties as American firms eye Pakistan investments

Islamabad, US discuss boosting economic ties as American firms eye Pakistan investments
  • Both sides this year signed a $500 million deal to create a framework for joint development of the entire mineral value chain
  • This month, Pakistan launched its first Google Chromebook assembly line as result of partnership involving government, Google

ISLAMABAD: Pakistan and the United States (US) on Friday discussed ways to deepen economic and investment cooperation, the Pakistani foreign office said, with Deputy Prime Minister Ishaq Dar welcoming growing interest from American firms.

The statement came after Dar’s meeting with the US Chargé d’Affaires Natalie Baker in Islamabad, a day after another US-based mining, exploration and development company, Nova Minerals, expressed interest in long-term investment in Pakistan’s mining and mineral sectors.

Pakistan has a vast and largely untapped potential in the mineral and mining sector, and the country offers promising investment opportunities across multiple areas, particularly in exploration and processing of high-value minerals.

Earlier this month, Pakistan launched its first Google Chromebook assembly line as a result of a public-private partnership involving the Pakistani government, Google and Tech Valley, along with the National Radio & Tele­com­munications Corpora­tion’s (NRTC) and Allied Corporation.

“Highlighting the importance of enhancing bilateral economic and investment cooperation, particularly in IT & critical minerals, the DPM/FM welcomed growing interest of US companies to invest in Pakistan, including establishment of the Google Chrome assembly line in Haripur,” the Pakistani foreign ministry said.

“Both sides also exchanged views on regional & international developments.”

The development comes more than a month after Pakistan dispatched its first ever shipment of rare earth and critical minerals to the US, a Chicago-based public relations (PR) firm said, following a landmark $500 million deal between the two countries.

The agreement, signed between American firm US Strategic Metals (USSM) and Pakistan’s Frontier Works Organization (FWO), aimed to create a framework for joint development of the entire mineral value chain, including exploration, beneficiation, concentrate production and eventual establishment of refineries in Pakistan.

Pakistan indigenously sourced and prepared antimony, copper concentrate, and rare earth elements with neodymium and praseodymium for shipment, according to US firm PR Newswire. With this first delivery and a multi-phase investment framework underway, Pakistan is now positioned as a rising force in the global critical mineral economy.

“Such initiatives would help create an ecosystem conducive to further foreign investment in Pakistan’s mining sector,” the Pakistani government said earlier, citing Board of Investment (BOI) Minister Qaiser Ahmed Sheikh.