Iran seeks to establish free trade zone with Afghanistan and China
Iranian officials have announced that they are pursuing a plan to establish a trilateral free trade and industrial zone between Iran, Afghanistan, and China aimed at expanding economic cooperation, attracting foreign investment, and strengthening transit routes.
Morteza Zakarian, Director General of Economic and Financial Affairs of Iran’s South Khorasan Province, said the proposal was put forward based on the geographical, mining, and transit capacities of the three countries, and that administrative and expert reviews of the plan are ongoing.
Speaking at a meeting with a Chinese economic delegation at the South Khorasan Special Economic Zone, Zakarian said the Iran-Afghanistan-China route could serve as a secure and sustainable corridor, creating opportunities for expanded trade and economic cooperation among regional countries.
He added that the proposal to establish the trilateral free trade zone was presented by the provincial governor during the Iranian president’s visit to South Khorasan in 2025.
Zakarian stressed that the implementation of the project should not rely solely on government resources, adding that the private sector, particularly Chinese investors, could play an important role in making the plan a reality.
The Director General of Economic and Financial Affairs of South Khorasan highlighted the province’s border location with Afghanistan, mineral resources, workforce, available land for economic projects, and position along major transit routes as key advantages.
He said Afghanistan’s mineral resources, rare elements, and transit position, along with China’s investment capacity, financing potential, and technological expertise, could contribute to this economic cooperation model.
Zakarian also noted the growing presence of Chinese investors in South Khorasan, saying that 12 investment projects by Chinese nationals have so far been approved in the province, with more than half receiving approval over the past two years.
