Iran’s Kermanshah targets $5 billion in annual trade with Iraq

Shafaq News/ The governor of Iran’s Kurdish province of Kermanshah, Manouchehr Habibi, outlined foreign trade as a cornerstone of the province’s development strategy.

According to statistics from the General Customs Directorate, Kermanshah’s non-oil exports through its borders with Iraq reached $2.5 billion. However, this figure falls short of the province’s target, which is set at a minimum of $5 billion annually.

Governor Habibi, during a recent export development meeting, highlighted that the province’s official border crossings—Khosravi, Parviz Khan, Sumar, Shoshmi, and Sheikh Saleh—are key to achieving this goal. “To realize this vision, greater effort is needed, as the current figures are far below our developmental aspirations,” he said.

Iraq is the primary destination for Kermanshah’s exports, accounting for a substantial portion of the province’s trade. Governor Habibi emphasized the objective of securing a 50% share of Iraq’s total imports from the province.

With over 371 kilometers of shared border and two official crossings, Kermanshah is strategically positioned to be a hub for cross-border trade. Additionally, five regulated markets along the border play a critical role in facilitating commerce. In the Iranian calendar year ending March 19, 2024, the province exported 7.273 million tons of goods valued at $3.4 billion.

Habibi stressed the need to formalize all border crossings and improve infrastructure to support increased trade volumes. “The current state of the borders and markets does not align with the province’s developmental goals,” he said, calling on relevant institutions to expedite infrastructure projects.

He highlighted ongoing discussions with Iran’s Roads Organization to upgrade border facilities. “The provincial roads administration must focus on improving conditions to ensure noticeable progress during future inspections,” he added.

The governor also underlined the importance of engaging international transport companies to streamline trade operations, particularly at the Parviz Khan border crossing.

To address challenges and strengthen bilateral trade, Habibi announced plans for a high-level meeting with officials from Iraq’s Diyala province. These discussions aim to resolve logistical issues and remove obstacles hindering cross-border commerce. “Joint meetings will focus on eliminating barriers and creating a conducive environment for trade expansion,” he said.

The governor concluded by emphasizing the importance of coordination among agencies to realize the province’s export ambitions.

Notably, Kermanshah’s exports to Iraq surged by 130% in value during the first five months of the 2024 fiscal year, reaching $2.684 billion and 3.075 million tonnes in total, a 4% increase in weight compared to the same period last year. The Parviz Khan border accounted for the largest share, exporting goods worth $1.611 billion and weighing 1.3 million tonnes, underscoring its strategic importance in trade.

Other key contributors included the Sumar border ($447.1 million, 740,085 tonnes) and the Khorramshahr customs station ($434.7 million, 670,615 tonnes). Sheikh Saleh ($170.4 million) and Shoshmi ($20.1 million) also played smaller roles.

Iran's fiscal year begins on March 21.