Exports to Afghanistan reached $1.5 billion in the year to March 2011, announced secretary general of Iran-Afghanistan Chamber of Commerce.

Mozaffar Alikhani told that the amount indicates a 30-percent rise against the figure for the preceding year.

Iran’s imports from its neighbor stood at $20 million during the year to March 2011, he added.

The official listed foodstuff, detergents, sanitary-ware and cosmetics, textiles, garments, machine-made carpets, construction materials, home appliances, pharmaceuticals, medical equipment and fuel as the major items exported to Afghanistan.

In return, Afghanistan exported fruit, nuts, livestock, dairy products, hand-woven carpets, handicrafts, beans and gemstones to Iran, he said.

Alikhani further said that problems relating to fuel transit from Iran to Afghanistan have been overcome.

Investment

Iran has so far invested $350 million in 110 industrial and services projects in Afghanistan, of which $127 million were committed last year, he added.

Recalling the religious, historical, cultural and language commonalities between the two nations, he said that the presence of millions of Afghan migrants in Iran in the past three decades and the 936-km joint borders have made the Afghans familiar with Iranian brands, commodities and technical-engineering services.

Highlighting the interest of Afghans in importing technology and industrial machineries from Iran, he said currently 90 percent of Afghanistan’s industries are located in the western region particularly in Herat.

Machineries and raw materials for these factories are procured from Iran and installed by Iranian engineers, the official said.

Rich Mineral Reserves

Pointing to Afghanistan potentials, he said that the country has an untapped market and possesses rich unexplored mines.

Afghanistan’s mineral reserves include natural gas, crude oil, coal, copper, gypsum, chromites, lead, zinc, iron, salt, cement and gemstones, he noted.

According to him, Afghanistan is the second country in the world to have all mineral ores in the periodic table.

He said that the Afghans are very rich people who live in poverty. Afghan mineral deposits, he said, should be identified, explored, exploited and processed. Iran can help in this respect in view of its know-how and experience in the mining sector, he added.

Quoting an assessment by the US Defense Department, the Pentagon, he said that Afghanistan’s underground reserves including oil, gas and minerals are valued at $22 trillion.

Conditions are ripe for investment in industrial sectors of Afghanistan, he said, adding establishment of factories would generate jobs and increase value-added.

He noted that Afghanistan is located in the heart of Asia with potentials to link China and India to the Commonwealth of Independent States.

Pointing to tourism cooperation with Afghanistan, he said that grounds have been created for religious and health tourism.

He elaborated that close to 14 flights operate from Afghanistan to India and Dubai, of which 11 are for medical purposes. Each patient spends between $10,000 and $40,000.

This is while Iran has high capabilities in health and medical treatment, particularly in cardiology, gynecology, ophthalmology, and orthopedics, he said.

Techno-Engineering Services

Pointing to Afghanistan’s needs for technical-engineering services, he said this country requires Iran’s cooperation and expertise in constructing dams, housing units and power plants.

Alikhani noted that the Iranian government has undertaken technical-engineering services in Afghanistan for which the funds have been procured from grants.

Citing the active involvement of Iran’s private sector, he noted that an Iranian firm is constructing Kabul-Bamyan road at a cost of $80 million.

In addition, Iranian companies have won a tender for a cement project which would be implemented at a cost of $100 million in near future, he said.

Highlighting that currently 44 nations are competing in the Afghan market, he said that there is a stiff competition for economic undertakings in Afghanistan.

At present, China, India, Pakistan, Turkey, European nations such as Ukraine and Russia, and Arab countries including the UAE and Saudi Arabia have a significant presence in the Afghan market, he noted.

Pakistan is the top exporter to Afghanistan, followed by Iran, he said.

Turkey ranks first in terms of exporting technical-engineering services to Afghanistan while Iran is in the second place.

Iran ranks fifth in terms of the volume of investments in Afghanistan.

Since Afghan-Pakistan border crossing remain open, merchants travel without visas, he said.

Referring to the difficulties faced by Iranian and Afghan businesspersons in obtaining visa, he hoped that the problems would soon be resolved. 

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