According to reports, the strategic move includes the development of commercial, residential, and administrative projects.

This investment, announced by the Iranian Special Envoy to Kabul, Hassan Kazemi Qomi, marks a significant step by the Afghan government to diversify its trade and economic partnerships beyond its traditional ties with neighboring countries, reported Khaama Press.

The investment was made public following a visit by an Afghan delegation to Iran, highlighting the deepening economic cooperation between the two nations, the news agency reported.

A major aspect of the investment plan is to focus on Fakher construction project within the Chabahar Special Economic Zone.

The engagement between Afghanistan and Iran comes at a time when both countries have experienced strained relations, not only with each other over issues such as border disputes and water rights but also with neighbouring Pakistan, reported Khaama Press.

Despite these regional tensions, the investment in Chabahar is viewed as a strategic effort by Afghanistan to secure an alternative route for its trade and to bolster its economy, which is crucial for the landlocked country, the news agency reported.

The Taliban came to power in Afghanistan in 2021 after foreign forces decided to exit the war-torn country.

Where is Chabahar Port located?

Chabahar Port is a seaport in Chabahar located in southeastern Iran, on the Gulf of Oman.

It serves as Iran's only oceanic port, and consists of two separate ports named Shahid Kalantari and Shahid Beheshti, each of which has five berths.

It is a crucial port as far as India's connectivity is concerned since it provides a viable and shorter route for trade between India, Iran, Afghanistan, and Central Asia.