Afghanistan has begun shifting its trade patterns away from Pakistan, redirecting a growing share of its imports and exports through Iran and Central Asia in an effort to reduce chronic dependence on Islamabad’s ports and border crossings.

The move follows repeated closures along the Pakistan-Afghanistan frontier, disrupting trade and straining bilateral relations.

For decades, Afghanistan’s landlocked geography has rendered it heavily reliant on Pakistan’s ports—principally Karachi and Gwadar—for seaborne trade access.

This dependency allowed Islamabad leverage to influence Kabul, particularly regarding the presence of anti-Pakistan militant networks in Afghan territory. However, with the border frequently closed over political or security disputes, Kabul now aims to diversify its trade corridors to prevent disruptions that have previously paralysed supply chains.

According to the Afghan Ministry of Commerce, trade with Iran reached 1.6 billion dollars over the past six months, surpassing the 1.1 billion dollars transacted with Pakistan. This marks a significant shift in Afghanistan’s trade geography, underpinned by Iran’s efforts to make its Chabahar Port more attractive for Afghan cargo.

The Indian-backed Chabahar Port now serves as the central hub for Afghan imports and exports, offering reduced tariffs, upgraded scanning systems and discounted handling facilities. Afghan officials confirm that Iran has slashed port tariffs by 30 per cent, storage fees by 75 per cent, and docking charges by 55 per cent, creating a cost-effective and secure alternative to Pakistan’s congested access routes.

Deputy Prime Minister for Economic Affairs Mullah Abdul Ghani Baradar has instructed Afghan traders to finalise all existing contracts routed through Pakistan within three months and shift operations to other corridors thereafter. Baradar accused Islamabad of using “commercial and humanitarian matters as political leverage” and declared that Kabul would not mediate trade disputes after the deadline.

He also directed relevant ministries to halt clearance of Pakistani pharmaceutical imports, citing concerns about product quality. The directive marks a decisive political and economic break from Pakistan, signalling a broader reorientation of Afghan trade policy towards Iran and Central Asia.

India, which operates key terminals at Chabahar, views the port as a critical strategic asset linking Afghanistan and Central Asia to the Indian Ocean. It also serves as a counterweight to China’s influence through Pakistan’s Gwadar Port, which forms part of the China–Pakistan Economic Corridor (CPEC).

New Delhi’s engagement with the Taliban government has quietly expanded in recent months, with high-level meetings, renewed diplomatic contacts in Kabul, and humanitarian aid initiatives. The United States, recognising Chabahar’s stabilising role, granted India a six-month sanctions waiver in October 2025 to continue operating the port despite broader restrictions on Iran.

Beyond Iran, Afghanistan is enhancing trade routes across Turkmenistan, Uzbekistan and Tajikistan. New transit facilities, customs offices and reduced border tariffs are accelerating freight movement through these corridors. Kabul’s commerce ministry predicts that these routes will soon overtake Pakistan’s in terms of growth rate, though logistical efficiency remains uneven compared to Karachi’s direct maritime access.

The Milak and Zahedan border crossings between Iran and Afghanistan have become focal points for infrastructure development, featuring upgraded facilities and digital clearance systems under trilateral coordination programmes involving India and Iran.

Pakistan’s Defence Minister Khawaja Asif dismissed concerns that Afghanistan’s redirection of trade would economically damage Islamabad, asserting that “Afghanistan can trade through any port or country.” However, Commerce Minister Jam Kamal Khan maintained that Pakistan’s security priorities would not be compromised, hinting that border restrictions—ostensibly aimed at controlling militant movement—are unlikely to be relaxed soon.

While Pakistan’s southern ports still offer the quickest access to the sea, moving goods from Afghanistan to Karachi in as little as three days, political volatility and repeated closures have eroded trader confidence. In 2024, Pakistan’s exports to Afghanistan reached 1.5 billion dollars, but the latest developments suggest this figure will likely decline as Kabul consolidates alternative supply chains.

Afghanistan’s shift underscores a broader reconfiguration of regional trade alignments influenced by both geopolitical and economic factors. Chabahar’s growing role not only strengthens ties between Kabul, Tehran and New Delhi but also enhances India’s long-term presence in the western trade corridor bypassing Pakistan.

For Iran, the influx of Afghan cargo bolsters revenue amid lingering sanctions, while for Central Asian states, it offers new opportunities to connect southern routes with Eurasian rail and road networks. Pakistan, meanwhile, may face gradual erosion of its traditional transit leverage unless it reforms its border management approach and stabilises its internal trade framework.

Afghanistan’s pivot towards Iran and Central Asia, while driven by necessity, signals an irreversible diversification of its supply routes—one that may redefine regional commerce and connectivity in the years ahead.

Based On Reuters Report