Iran Begins Work on Joint Free Trade Zone with Afghanistan and China
Iranian officials have announced the initiation of plans to establish a joint free trade and industrial zone between Iran, Afghanistan, and China. The project is currently undergoing administrative and technical evaluations.
Morteza Zakirian, Director General of Economic and Financial Affairs of South Khorasan province, stated that the proposal takes into account the geographical, mineral, and transit capacities of the three countries. The primary objectives are to expand economic cooperation, attract foreign investment, and strengthen transit routes.
He made these remarks during a meeting with a Chinese economic delegation at the South Khorasan Special Economic Zone, adding that the shared route between Iran, Afghanistan, and China could provide a “safe and stable” environment for developing regional trade.
According to Zakirian, the proposal for the free trade zone was first introduced in the Persian calendar year 1404 (2025-2026) during the Iranian president’s visit to South Khorasan, suggested by the province’s governor. He emphasized that the implementation of this plan should not rely solely on government resources; the involvement of the private sector, especially Chinese investors, is essential.
The Director General highlighted South Khorasan’s border with Afghanistan, mineral reserves, workforce availability, suitable land for economic projects, and transit routes as significant opportunities for realizing this initiative. He also noted that 12 investment projects by Chinese nationals have been approved in South Khorasan, with more than half sanctioned in the past two years.
Located in eastern Iran along the Afghanistan border, South Khorasan is an important commercial passageway between the two countries.
