Khamenei, Akhudzada and Shahbaz Sharif

Tension is increasing between Pakistan and Afghanistan. But Iran has gained a big advantage in this ongoing tussle between the two countries. In fact, due to this tension, it has had a big impact on the economy and trade of Afghanistan.

Due to border dispute with Pakistan, ban on supply of medicines and transit policy, Afghanistan is now continuously leaning towards Iran and Central Asia. As a result, Pakistan’s decades-old economic dominance is weakening and Iran’s influence is increasing rapidly.

Iran becomes new lifeline

Afghanistan-Iran trade has reached $1.6 billion in the last six months, much more than the $1.1 billion trade with Pakistan. Afghanistan is now trying to get out of dependence on Pakistan by using Chabahar Port and Iranian transit routes. Taliban’s Industry and Trade Ministry spokesperson Akhundzada has said that even if Pakistan closes the border, our trade through Chabahar will not stop.

Accusation of political pressure on Pakistan

Taliban’s Deputy PM Mullah Baradar has accused Pakistan of using economic and humanitarian issues as political weapons. He has given an ultimatum to Afghan businessmen to settle all their contracts with Pakistan in three months. The biggest impact of this is on the pharmaceutical trade. Medicines coming from Pakistan are cheap, easily available and quick to reach.

Looking for options, but also challenges

Taliban is now preparing to import medicines from India, Türkiye, Iran and Central Asia. But the big problem is the fast registration process of foreign companies, increasing the list of approved medicines and 300 containers of medicines have been stopped by Taliban in Kandahar Customs, due to which the prices are increasing.

Iran’s Melk and Zahedan border points have now become the new centers of Afghan trade. While Pakistan claims that Afghanistan’s decision will not affect us, the reality is that Iran and Central Asia routes are expanding rapidly. Afghan business is looking for permanent alternatives away from Pakistan.