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Analysis

North-South Corridor, Launching Pad for Afghanistan Economic Revival

Monday 2 May 2022
North-South Corridor, Launching Pad for Afghanistan Economic Revival

Alwaght- Despite the US efforts to bar world countries from trading with Iran, The Islamic Republic's strategic and geopolitical position and its location on important transit routes make countries such as India and Afghanistan interested in doing part of their trade through the North-South Corridor that passes Iran. Expanding India's trade through the port of Chabahar and connecting to the North-South Corridor, which connects Central Asia to the high seas, can boost trade among the countries of the region and reduce their transportation costs. If the railways of Central Asia and Afghanistan are connected to Iran's railway network, it could lead to the expansion of trade among them. According to experts, the North-South Corridor is the most cost-effective and secure way of transportation for Central Asian countries and Afghanistan, because Iran's routes help transport goods through the Persian Gulf with the lowest cost and maximum security and thus reduce the transportation problems for landlocked countries. 

For Afghanistan, which suffers from geographical restrictions, the corridor is even of greater importance. Due to its geopolitical importance, Afghanistan has been the scene of political and geopolitical rivalries between regional and international powers in recent decades, and its connection to the Sea of Oman and the Persian Gulf through Iran will enhance its importance and position. It, which has always dreamed of access to high seas due to its landlock, will get an opportunity to boost its trade through Chabahar if the North-South Corridor of Iran is completed. 

Expansion of transit relations between Iran and Afghanistan will complement the Indian route to Central Asia, and having in mind that Afghanistan has the longest border with Iran and among other neighbors has the largest exports to Iran, with implementation of the corridor, these exchanges would even increase. Also, the Iranian corridor is the best investment place for Afghan investors to reduce Afghanistan's export and import costs. According to data, about 80 percent of Afghanistan's foreign trade is done with Pakistan and through the port of Karachi, and given that the transfer of goods from Karachi to Afghanistan takes 18 hours, the port of Chabahar can decrease this time to 12 hours, which is more economical for the Afghans. 

In addition to cutting hundreds of millions in Afghanistan transit fares, the Iranian corridor can help Afghanistan reduce reliance on Pakistan trade and transit amid creeping differences between Kabul and Islamabad. Reduced reliance on Pakistan will give new Kabul leaders the opportunity to regulate more independently their relations with other foreign actors. 

In recent years, Afghanistan leaders have been seeking to increase their economic partnerships to, by diversifying their trade and transit routes, inject life into their suffering economy and cut their independence on the international aids. The ex-Afghanistan President Ashraf Ghani's a few years ago highlighted the significance of Iran's port of Chabahar. 

"The port of Chabahar is the key to Afghanistan's future, and with the opening of this port, Afghanistan will no longer face transit restrictions," he said of the Iranian port. 

Since Chabahar has the potential to become a transit hub in the region, it can bring significant changes to regional economies, especially Afghanistan. 

Being a landlocked country is one of the reasons why Afghanistan has been a base for radicalism and terrorism. The neighboring states are worried about the insecurity spillover to the region and so are trying to develop its infrastructure and exports and cut poverty by connecting it to international transit routes and waterways. The best option for Afghanistan to access new markets is the North-South Corridor to help it break its landlock limits. Given that the Iranian corridor is sea, land and rail route connecting the Indian Ocean to Central Asia, Russia and Eastern Europe, Afghanistan can also benefit from this international corridor by exporting its goods to China, India, Central Asia and Europe and turn into a crucial actor into regional developments. 

From another aspect, the Taliban rule which is boycotted by the West is pushing for alternative partners to reconnect to the world trade. Iran is Afghanistan's largest trading partner, and with the completion of the Khaf-Herat railway, Afghanistan will be given access to the Persian Gulf and the Sea of Oman, and at a very low cost, it would be able to make large part of its exports and imports, especially food imports, through this land route. Afghanistan can also expand its trade with Central Asia through the North-South Corridor. With the completion of the Khaf-Herat railway, more than three million tons of goods will be transported annually through this route, which is a turning point in the development of trade between the two countries, according to experts. 

In general, linking the south of Iran to the Central Asia can play a big role in Iran-Afghanistan trade ties. The North-South Corridor, especially the port of Chabahar, marks a great gift for Afghanistan and can help improve its economic conditions, cut poverty and economic challenges, and push forward peace and security in the country. With China, India, and Europe holding a big share from the global trade, Afghanistan can make an intersection linking Indian Ocean, Europe, and Central Asia because of its geopolitical position and through connection to this corridor. 

Tags :

North-South Corridor Afghanistan Iran Trade Chabahar

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