A cargo ship docks at Iran's Chabahar Free Trade-Industrial Zone.[/caption]KABUL: Afghanistan expected to sign a transit trade agreement for using Chabahar port of Iran as alternative trade route.
Afghanistan ambassador Shaida Mohammad Abdali said the route was likely to boost bilateral trade to around $3 billion from $700-800 million.
Afghanistan is scouting for alternative routes bypassing Pakistan to open itself up to foreign investments.
Pakistan is currently the route. Once we have the Chabahar port, we expect it to go up at least to $3 billion. India has already announced money for the upgradation of the Chabahar port. The draft transit agreement has been shared with the parties. Once signed we will see a trade jump, Abdali said at a session on business opportunities in Afghanistan organised by the Bengal Chamber of Commerce and Industry.
Chabahar will help India to get easier access to energy-rich Central Asia and facilitate the import of minerals from Afghanistan. The Narendra Modi-led government has already agreed on a framework of participation in the development of the port.
On the SAIL-led consortiums project to develop iron ore mines in Hajigak, Abdali said it involved an investment of over $11 billion and would take time.
Hajigak is in process. It takes time. It is a big project of at least $11 billion. There are some pending technical issues. This includes a rail link. A study on the rail network that goes from the central part of Afghanistan to Chabahar has been conducted. Cost has been estimated for transporting iron ore to India. We are now looking into the sources on how to fund that link, he said.
According to Abdali, Afghanistan was working hard to fight a misperception that projects it as a country not ready for business. He said minerals, information technology, education, precious stones, construction and food processing were the ideal sectors to attract investments.
Meanwhile, Afghanistan is also interested in re-opening its commercial office in Calcutta to give a thrust to trade with the eastern part of India. It had a commercial office in the city until 1928.
By Customs Today
