Business
Afghans continue to pay heavy price for US’s economic sanctions
A year after the Islamic Emirate of Afghanistan took control, Afghans continue to pay the heavy price of sanctions imposed by the US.
Experts say that the freezing of Afghanistan’s foreign reserves and the continuation of sanctions have not only hindered investment in the country, but also disrupted economic activities.
According to these experts, the continuation of sanctions will further worsen the economic situation, and America is simply taking revenge for its failure in the country.
With the establishment of the Islamic Emirate of Afghanistan (IEA), the imposition of sanctions by the United States disrupted the banking system in Afghanistan, the scope of poverty expanded and a humanitarian crisis emerged.
“Afghanistan’s financial, monetary, commercial and economic system has been seriously affected and Afghanistan’s reserves are still frozen, Afghanistan awaits a bigger disaster,” said Shaker Yaqoubi, an economic expert.
A number of other experts consider the imposition of sanctions by the United States as the main cause of the expansion of poverty in the country and emphasize that its continuation will once again cause a mass migrant exodus.
“Afghanistan will go into economic isolation and people’s poverty levels will increase and illegal immigration will also increase,” said Shabir Bashiri, an economic expert.
Although many meetings have been held in Afghanistan to free up the frozen foreign reserves, and the Islamic Emirate’s continuous calls for the release of these assets, the United States has not responded.
Pakistan’s kinno exports remain far below potential as regional tensions, high freight costs and weak government support continue to choke the citrus trade.
Despite being a leading global citrus producer, Pakistan is expected to export just 400,000–450,000 tonnes of kinno in the 2025–26 season, compared with an estimated capacity of 700,000–800,000 tonnes.
Exports in 2024–25 stood at around 350,000–400,000 tonnes, mainly to Russia, the UAE, Saudi Arabia, Afghanistan, Indonesia and Central Asia. While better fruit quality this season has raised hopes, persistent crossing disruptions—especially with Afghanistan—and transport bottlenecks have offset gains.
Growers say prices have collapsed sharply, forcing panic sales. Rates for large kinno have fallen from over Rs120 per kg early in the season to as low as Rs75, while smaller fruit is selling for Rs35–40 per kg amid weak demand.
Industry leaders warn the crisis is crippling processing units and jobs. More than 100 factories reportedly failed to open this season, with dozens more shutting down as exports stall. Cold storages in Sargodha are nearly full, putting fruit worth millions of dollars at risk of spoilage, while growers fear losses of up to Rs10 billion.
Exporters are urging the government to urgently resolve issues, subsidise logistics, and help access alternative markets, warning that prolonged inaction could devastate farmers, workers and the wider economy.
Iranian President Masoud Pezeshkian has said that Tehran will facilitate trade and economic exchanges with Afghanistan, including easing procedures at customs and local marketplaces.
He made the remarks during a televised interview following his visit to South Khorasan province, which shares a border with Afghanistan.
Pezeshkian, in a separate event addressing local business leaders, highlighted the province’s strategic advantages, citing its rich mineral resources, proximity to neighboring countries such as Afghanistan and Pakistan, and access to the ocean via the Chabahar port. He described the region as “a golden opportunity not found everywhere,” emphasizing its potential for economic growth and cross-border commerce.
A Kazakh delegation led by the Deputy Minister of Finance of Kazakhstan met with Sediqullah Khalid, First Deputy Governor of Da Afghanistan Bank, to discuss ways of strengthening banking and economic cooperation between the two countries.
According to a statement issued by Da Afghanistan Bank, Khalid said the central bank is keen to establish regular and effective banking relations with Kazakhstan as part of broader efforts to expand bilateral trade.
He noted that enhanced banking cooperation would help facilitate trade, investment, and wider economic interaction between Afghanistan and Kazakhstan, while also contributing to financial stability at the regional level.
Members of the Kazakh delegation also emphasized the importance of developing banking and economic ties and expressed their readiness to expand joint cooperation.
The two sides further agreed to establish technical committees from both countries to hold expert-level discussions and advance practical steps for cooperation.
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