With U.S. sanctions waiver, India to continue Chabahar port operations, supporting regional trade

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New Delhi– With Pakistan closing several border crossings to Afghanistan, causing heavy losses for traders on both sides, Afghan business groups say new opportunities are emerging through Iran’s Chabahar port. The port, developed and operated by India, is providing a stable alternative trade route for Afghanistan and other regional countries, according to reports from Kabul.

The Afghanistan-Pakistan Joint Chamber of Commerce and Investment has stated that disruptions at the border have already resulted in more than $100 million in losses. The situation has created uncertainty around future trade flows, with daily commercial activity impacted.

However, Afghan officials told Pajhwok News that Chabahar offers Afghanistan a reliable and strategically valuable path for exports and imports. They noted that the port could help Afghanistan boost trade, reduce reliance on Pakistan’s transit routes, and gradually position itself as a regional transit hub.

Exporters in Kabul also reported that shipments to India through Chabahar are currently moving without difficulty.

During a recent meeting on transit links in Kabul, Mohammadullah Bakhtyar, Director at Afghanistan’s Ministry of Commerce and Industry, emphasized the strategic importance of Iran’s Chabahar Free Economic Zone. He said the port gives Afghanistan access to open seas, improving both trade security and long-term economic prospects.

India received a six-month U.S. sanctions waiver on October 29, allowing work to continue at Chabahar despite broader American sanctions on Iran. The extension follows earlier uncertainty after the United States revoked a previous sanctions exception in September, which had temporarily created legal and financial barriers for companies operating at the port.

India and Iran signed a 10-year agreement last year to develop the Shahid Beheshti terminal at Chabahar. Under the renewed waiver, New Delhi can continue operations without risk of U.S. penalties, at least until April next year. The waiver is seen as a diplomatic outcome favorable to India, given wider geopolitical tensions involving U.S. sanctions on both Iran and Russia.

Chabahar is central to India’s trade and connectivity strategy in Afghanistan and Central Asia, providing a route that bypasses Pakistan entirely. The port reduces costs and time for transporting goods between India and Afghanistan and strengthens India’s broader regional economic presence.

For Afghanistan, the port offers not only access to the Persian Gulf but also incentives including tax exemptions, reduced container handling fees, and cost advantages compared to other Iranian ports. Afghan officials say these benefits could help increase trade to markets in India, Central Asia, the Middle East, Europe, Africa, and the Americas.

With ongoing development and operational support from India, countries using Chabahar are expected to see improvements in logistics efficiency and trade stability. (Source: IANS)