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Commerce in conflict: Pakistan and Iran's economic stability in Afghanistan's instability

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  • Masihullah Nemat
  • Chitra Krishnan

Abstract

In this research paper, the economic exploitation of Afghanistan by Pakistan and Iran is analysed, focusing on how their control of trade routes, commercial channels, and natural resource extraction has hindered Afghanistan's economic development. The study examines the impact of these economic strains from the 'Dr. Najibullah' era to the ongoing 'Taliban regime'. The prime goals of this research are to examine the economic policies involved by neighbouring countries and to propose solutions for limiting their harmful impacts. The review employs qualitative data analysis, utilising thematic examination of secondary information from scholarly journals, reports, articles and other peer-reviewed papers. Key research findings reveal that Pakistan and Iran's control over Afghanistan's trade, commerce and natural resources has exacerbated its economic fragility. The study highlights the need for Afghanistan to diversify its trade and commercial channels, strengthen governance, and promote regional cooperation to mitigate these impacts. This analysis contributes to the scholarly discussion on economic exploitation in conflict zones, offering insights into how international competition shapes economic outcomes in least developed countries.

Suggested Citation

  • Masihullah Nemat & Chitra Krishnan, 2026. "Commerce in conflict: Pakistan and Iran's economic stability in Afghanistan's instability," International Journal of Entrepreneurship and Small Business, Inderscience Enterprises Ltd, vol. 58(3), pages 296-335.
  • Handle: RePEc:ids:ijesbu:v:58:y:2026:i:3:p:296-335
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