Iran and Afghanistan inked a Memorandum of Understanding (MoU) on economic cooperation.

Fars News Agency reports that the MoU was signed by Iranian Deputy Economy Minister Behrouz Alishiri and his Afghan counterpart Mustafa Mastoor at the end of the two countries' second joint economic commission meeting in Kabul.

The two sides agree to increase cooperation in customs, banking and insurance sectors, as well as preventing smuggling of goods at borders.

The Iranian official and his Afghan counterpart stressed the importance of expansion of relations between the two countries in the establishment of peace in the region.

"Iran and Afghanistan’s economies are complementary for each other; Tehran wishes a stable developed Afghanistan in its neighborhood," Alishiri underlined.

At present, 27.6% of Afghanistan's nearly $5bln imports is from Iran.