Iran is exploring ways to deepen economic engagement with Afghanistan, focusing on contract farming and trade, as discussions continue over potential formal recognition of the Islamic Emirate of Afghanistan (IEA) government, a senior Iranian business official said.

According to Iran News Daily, Mahmoud Siadat, head of the Iran–Afghanistan Joint Chamber of Commerce, said recognition of the Islamic Emirate of Afghanistan would boost investor confidence and facilitate long-term projects, including rail links connecting Iran to China via Afghanistan.

While no formal recognition has been confirmed, Siadat noted that bilateral relations have steadily improved.

Iran exports over $3 billion in goods and services annually to Afghanistan, including technical and engineering services, while Afghan exports to Iran remain limited at around $100 million.

Siadat highlighted agriculture as a key growth area, with plans for contract farming where Iranian firms would provide technology, expertise, and guaranteed purchase agreements for Afghan crops and livestock.

“Instead of importing legumes from Canada, we can source them from Afghanistan,” he said, noting that structured agricultural cooperation could benefit both countries.

Remittances from Afghans working in Iran, he added, further underline the strong economic ties between the neighbors.

Even without formal recognition, trade remains robust, but Siadat emphasized that a clear diplomatic framework could unlock more investment and strategic projects.

Uzbekistan and Afghanistan have agreed to significantly expand economic ties, setting an ambitious target of increasing bilateral trade to $5 billion, according to Uzbekistan’s Deputy Prime Minister, Jamshid Khodjaev.

Khodjaev announced the goal following a video conference with Afghanistan’s Minister of Industry and Trade, Nuriddin Azizi, during which both sides reviewed current cooperation and outlined plans for future growth.

“In just five years, bilateral trade has increased 2.5 times — from $653 million in 2021 to $1.7 billion in 2025. Our objective now is to raise this figure to $5 billion,” Khodjaev said.

The two officials discussed practical measures to deepen trade and economic cooperation, including preparations for an upcoming visit by an Afghan delegation to Uzbekistan. Following Ramadan, both sides plan to organize a business forum in Kabul and develop a detailed roadmap identifying priority sectors for collaboration.

The talks also focused on accelerating the implementation of a Preferential Trade Agreement, which both countries agreed should enter into force as soon as possible. Officials further explored expanding joint investment and industrial projects.

Key areas highlighted for cooperation include the processing of agricultural products, construction materials, textiles, and initiatives aimed at strengthening food security. The two sides also reviewed infrastructure needs to facilitate trade, including the establishment of showrooms, logistics centers, and warehouses to improve product promotion and distribution.

Trade between Uzbekistan and Afghanistan has grown steadily despite regional challenges, with total turnover rising sharply over the past five years — a trend both governments now hope to accelerate through structured economic partnerships and closer regional integration.