An Afghan trade delegation has announced construction and investment deals worth $35m in Iran's southern port of Chabahar.

Hassan Kazemi Qomi, Iran's ambassador in Afghanistan, said that the delegation has commenced work on “various projects including commercial, residential, and administrative ventures, backed by a $35 million investment.”

The move comes against the backdrop of Iran's recent measures towards Afghan refugees, including reported widespread expulsions with speculation that the latest move will see many of the illegal workers put through a formal system.

Amid ongoing border tensions, Afghans were in December, banned from living in 16 Iranian provinces.

The influx of Afghan workers, particularly in the construction sector, has faced criticism within Iran, facing allegations of taking jobs away from Iranians amid a deep economic crisis.

Iranian officials have estimated the number of authorized foreign nationals in Iran to be approximately four million, with a significant portion presumed to be refugees.

Since the resurgence of the Taliban in Afghanistan in 2021, Iran has refrained from formally recognizing the Taliban government. Nevertheless, Iran has engaged closely with the Taliban and facilitated interactions such as trade and commerce deals.

Afghanistan's embassy in Tehran has been handed over to representatives of the Taliban.