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Domestic Economy

Iran’s Exports to Afghanistan Decline Since Taliban Takeover

Iran’s exports to Afghanistan during the 11 months since the Taliban took power in the neighboring country reached 959,783 tons worth $1.48 billion, registering a 52% and 31% year-on-year decline in terms of weight and value respectively.

Imports from Afghanistan hit 21,122 tons worth $24.52 million during the same period, registering a 177% and 294% growth in terms of weight and value respectively.

In the last two decades before the Taliban takeover, after China, Iraq, Turkey and the UAE, Afghanistan was considered the fifth biggest destination of Iranian exports, but following the power shift, Iran's exports to Afghanistan have been on a downtrend, the Persian newspaper Ta’adol reported.

Iranian traders have had to compete with their Turkish and Saudi counterparts in the Afghan market and with the establishment of the Taliban, this competition has tilted more in favor of the rivals.

According to the Islamic Republic of Iran Custom Administration, Iran’s exports to Afghanistan stood at 2.17 million tons worth $855 million in the first five months of last fiscal year (March 21-Aug. 22, 2021), before the Taliban came to power, registering a 1.7% and 5% YOY decrease respectively.

Iran's exports to Afghanistan in the first quarter of fiscal 2021-22 (March 21-June 21, 2021) hit $569 million, while during the Q1 of the current fiscal year (March 21-June 21, 2022), the figure reached $367 million, registering a 35% decline.

The end of Q1 marks the ninth month of the Taliban’s rule over Afghanistan.

As ILNA reported earlier, a total of 4.18 million tons of goods worth $1.84 billion were exported from Iran to neighboring Afghanistan during the last Iranian year (March 2021-22), registering a 40% and 20% decline in weight and value respectively compared with the year before.

Blaming the decline on power transition in Afghanistan after the Taliban took over in July 2021, Spokesman of the Islamic Republic of Iran Customs Administration Rouhollah Latifi said, “Afghanistan went through a few months of crisis and cargo owners were cautious in sending their consignment across our common borders.”

The official noted that the purchasing power of Afghans has fallen as the economic situation in their country has deteriorated, which has also led to the cancellation of many projects there. 

All of this, he added, have affected Afghanistan’s foreign trade.

“Over the same period [March 2021-22], we imported more than 17,000 tons of goods worth $19.5 million from our eastern neighbor. The figures registered a 200% and 360% rise in volume and value respectively compared with the previous year,” he said.