Business
Afghanistan faces economic strains following a ‘series of shocks’ last year
These pressures have driven an estimated 11 percent population increase in the fiscal year 2025, largely due to returning migrants, the World Bank stated.
Afghanistan’s fragile economy is grappling with a series of shocks that intensified in 2025, according to a World Bank economic update report released on Wednesday.
The report noted that Afghanistan has been hit by reduced foreign aid, prolonged crossing closures along the disputed Durand Line with Pakistan, natural disasters, and a significant return of refugees from Iran and Pakistan.
These pressures have driven an estimated 11 percent population increase in the fiscal year 2025, largely due to returning migrants, the World Bank stated.
While Afghanistan’s aggregate GDP grew by around 4.8 percent last year, reflecting a rebound in nonagricultural activity and private consumption, the growth has not kept pace with population expansion. As such, per capita GDP contracted by 5.6 percent, as rising inflation and higher trade and transport costs eroded living standards.
“The influx of returnees has temporarily boosted domestic demand, but also places additional strain on labor markets, housing, and social services,” the report noted.
Looking ahead, Afghanistan’s economy is projected to grow by 4.0 percent in 2026, driven by strengthening domestic demand, higher private investment, and improved absorption of returnees into the workforce. However, the report warns that ongoing conflict in the Middle East and disruptions to trade routes, particularly the 60 percent of Afghan trade that passes through Iran, pose significant risks.
“Border closures or sudden surges in returnees could further depress per capita incomes and fuel inflation,” the World Bank said. Trade rerouting may mitigate some effects, but the country remains vulnerable to regional instability.
Despite these challenges, analysts highlight that modest growth and ongoing private-sector activity offer some hope for recovery. The World Bank emphasizes that sustained economic resilience will depend on peace, stable trade corridors, and the ability to productively integrate returning populations into the labor market.
Afghanistan’s experience underscores the broader regional pressures in the Middle East, North Africa, Afghanistan, and Pakistan (MENAAP), where conflict and humanitarian crises continue to ripple through economies, affecting inflation, trade, and social stability.
Business
Afghanistan, Belarus discuss expanding industrial and trade cooperation
Particular attention was given to companies producing tractors, industrial machinery, and equipment and vehicles used in the mining sector.
Afghanistan’s Minister of Industry and Commerce, Nooruddin Azizi, met with Belarus’ Minister of Industry during an official visit to the country.
The two sides discussed the establishment of manufacturing plants in Afghanistan, the regular organization of the Afghanistan-Belarus Business Forum, and follow-up on issues raised through the countries’ economic commission.
Belarusian officials expressed appreciation for Afghanistan’s participation in the country’s international industrial exhibition and voiced interest in expanding the presence of Belarusian manufacturing companies in Afghanistan.
Particular attention was given to companies producing tractors, industrial machinery, and equipment and vehicles used in the mining sector.
The second International Industrial Exhibition of Belarus is being held with the participation of around 500 companies from different countries. The exhibition has also attracted visitors from European and Asian countries.
Business
Afghanistan, Tajikistan seek stronger trade and investment ties
The two sides discussed increasing trade exchanges, establishing direct links between traders and investors, and organizing joint economic programs.
The heads of the chambers of commerce and industry of Afghanistan and Tajikistan have agreed to strengthen bilateral trade, promote investment and expand cooperation between the private sectors of the two countries.
Sayed Karim Hashemi, head of the Afghanistan Chamber of Commerce and Investment (ACCI), held an online meeting with Farhad Shah Rahman Alizoda, head of the Chamber of Commerce and Industry of Tajikistan, to discuss ways to expand economic ties.
The two sides discussed increasing trade exchanges, establishing direct links between traders and investors, and organizing joint economic programs.
Hashemi invited Tajik traders and investors to participate in the fifth Imam Abu Hanifa International Exhibition in Kabul.
Alizoda, meanwhile, invited an Afghan business delegation to attend a major trade and industrial exhibition in Dushanbe.
The two sides also stressed the importance of exchanging business delegations and developing long-term cooperation between the private sectors of Afghanistan and Tajikistan.
Business
Kazakhstan grain shipments to Afghanistan rise over 4-fold
Of the total, 7.2 million tons were transported for export, while 2.1 million tons were supplied to the domestic market.
Grain shipments from Kazakhstan to Afghanistan increased 4.4 times in the first eight months of the year, reaching 655,000 tons, according to Kazakhstan’s Transport Vice Minister Zhanibek Taizhanov.
Speaking at a government meeting, Taizhanov said Kazakhstan transported 9.3 million tons of grain by rail during the period, a 13% increase compared with the same period in 2025.
Of the total, 7.2 million tons were transported for export, while 2.1 million tons were supplied to the domestic market.
Taizhanov said grain shipments to Central Asia increased by 37%, while shipments to China rose by 34%. Grain exports through Russian ports also increased by 9%.
Meanwhile, combined fodder exports rose by 38% to 2.6 million tons.
Earlier, Kazakhstan’s Vice Minister of Agriculture Azat Sultanov said the country plans to commission 15 additional vegetable storage facilities by the end of 2026, with a combined capacity of 129,000 tons.
Muttaqi, Russian deputy PM discuss expanding economic ties
Russia investigates suspected pneumonic plague; Trump ready to ‘help’
▶️Saudi Arabia, Turkey, Pakistan activate Mecca defense pact
Thirty US states seek access to Afghan assets for 9/11 victims
Yemeni government forces seize strategic strait from Houthis
Saudi energy group signs major Afghanistan deals covering gas exploration and pipeline plans
Khalilzad: Afghanistan ready to attract major investment
Imam Abu Hanifa exhibition to draw exhibitors from more than 20 countries
UAE firm eyes investment in Salang’s second tunnel and pharmaceutical factories
US envoys make first Kyiv visit amid Ukraine war peace push
Tahawol: Afghanistan-Iran: shared opportunities and challenges discussed
Saar: Pakistan’s hostile policy toward Afghanistan discussed
Tahawol: Doha process seeks new cooperation opportunities
Saar: Moscow forum 8th consultative meeting on Afghanistan
Tahawol: Escalation of internal political crisis in Pakistan discussed
-
Latest News5 days agoFour members of one family killed in Helmand in Pakistan airstrike
-
Sport4 days agoACB announces Afghanistan squads for Bangladesh, Zimbabwe series
-
Sport1 day agoCricket Bonanza: Afghanistan set for packed international schedule
-
Latest News4 days agoRussia expects to ease Afghanistan-Pakistan tensions at Moscow Format meeting
-
International Sports4 days agoAfghanistan to face Pakistan, India and Australia at 2027 Cricket World Cup
-
Regional4 days agoSaudi-led coalition says Houthis attacked power station for Prophet’s Mosque in Medina
-
Regional4 days agoCargo stacks up as Pakistan seizes containers to block capital routes
-
Latest News3 days agoKazakhstan, Uzbekistan and UAE sign MoU on CASA railway project via Afghanistan