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Afghanistan faces severe medicine shortage amid Forex restrictions

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Afghanistan is now faced with medicine shortage due to disrupted border crossings and limited operation of banks.

Almost all medicine in Afghanistan is imported from neighboring countries, such as Pakistan, India, Bangladesh, Iran and Turkey.

However, the border crossings between Afghanistan and its neighbors were disrupted in the lead-up to the Islamic Emirate of Afghanistan’s (IEA) takeover, and normal operations are yet to resume.

Worse still, wholesalers have been unable to complete transactions due to the limited operation of banks.

"Yes, since the takeover, banks are closed [for international transactions]. As the banks are closed, we can't transfer payments to suppliers. If we don't transfer money to the suppliers legally, they will not be able to deliver us the medicine and prices will definitely rise. When demand is high, and supply is low, the prices naturally go up. We are facing a shortage in supply of essential medicine," said Rohullah Alokozay, President of GPS Pharma, Reuters reported.

Officials said the number of visitors at government hospitals has increased since the change of regime. The good news is that international donors have increased their focus towards government hospitals.

"In fact, we have even more visiting patients. Fortunately, we got more attention from UNICEF and the WHO, especially, towards our hospital which is a children's hospital. They didn't have enough focus in the last few years, but in the last month they increased our medical supply," said Noor ul Haq Yousufzai, president of Indira Gandhi Institute for Children's Health.

In fact, the government hospitals didn't have enough medical facilities in the past three to four years due to lengthy procurement processes and the problem of corruption.

Government hospitals were not able to provide medicines to patients despite the continued funding in the previous regime.

"On one hand, prices have increased, while on the other hand, the people have become poorer. This has affected the doctors, patients and the society. Even in the former regime, patients used to buy their medicine at the market. We used to prescribe the medicine. Patients were not provided even with a single pill from the hospital," said Dr. M. Fayaz Safi, Head of Medical Doctors' Association in Afghanistan.

Many of the problems in the health sector have been left over from the previous regime. Wahid Majrooh, former acting minister of public health in the previous government said the former Afghan authorities had tried to solve the issues in coordination with stakeholders, but efforts were unsuccessful.

"And it led us to having few or no supplies, and most of our health facilities including essential medicine, fuel, oxygen, staff salary. We have been trying to work with different stakeholders to see if we can fulfil the urgent needs, but we haven't been able to do it successfully," said Majrooh.

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IEA ‘disappointed’ over Norway’s decision to reduce level of ties with Afghanistan

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The Foreign Ministry Spokesman Abdul Qahar Balkhi on Friday expressed disappointment regarding decision by the Kingdom of Norway to downgrade diplomatic relations with Afghanistan.

Balkhi said in a post on X that The Islamic Emirate hopes such decisions should not be linked with internal affairs of other countries.

“Diplomatic engagement is most effective when it fosters mutual understanding and respect, even amidst differing viewpoints,” he stated.

“Access to consular services is a fundamental right of all nationals. We strongly urge all parties to prioritize this principle in the spirit of international cooperation,” he added.

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Qatari and British officials discuss situation in Afghanistan

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Qatar’s Foreign Ministry said in a statement Thursday that Maryam bint Ali bin Nasser Al Misnad, Minister of State for International Cooperation, has met with British Special Representative for Afghanistan Andrew McCoubrey for talks on Afghanistan.

According to the statement, the need to strengthen bilateral cooperation in the fields of health, education and humanitarian and development projects in Afghanistan were discussed.

Qatari and British officials stressed that the meeting was testimony to the strategic commitment of the two countries in support of the people of Afghanistan.

Currently, most countries cooperate only in the humanitarian sector. Some regional countries have also forged diplomatic ties with Afghanistan.

Western countries however continue to keep their diplomatic distance.

Qatar in turn is considered as a diplomatic, economic and humanitarian supporter of Afghanistan and has hosted the Doha meeting three times.

But according to experts, these meetings have not delivered tangible results so far because the sanctions have not been lifted nor have officials of the Islamic Emirate been removed from the blacklist.

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Afghanistan’s economy shows modest growth but recovery remains fragile

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The Afghan economy is showing signs of moderate growth, but still faces significant challenges, including fiscal constraints, trade imbalances, and a limited capacity for public investment, the World Bank (WB) said Wednesday.

According to the organization’s latest Afghanistan Development Update, issued on Wednesday, “Afghanistan’s economic recovery remains uncertain”.

Modest GDP growth of 2.7%, driven by private consumption, has recouped only about 10% of past economic losses, indicative of the slow and fragile nature of the recovery, the WB said.

According to the organization, this level of growth has done little to address deeper structural issues and significant vulnerabilities within Afghanistan’s economy.

“Enabling women’s participation in the economy, strengthening domestic resource mobilization, maintaining price stability, and addressing critical deficits in human capital - particularly in education and healthcare, and especially for women - will be essential for long-term recovery and reducing vulnerability to future shocks,” the WB said in a statement.

Faris Hadad-Zervos, World Bank Country Director for Afghanistan said: “Afghanistan's long-term growth prospects depend on tapping into the substantial potential of the domestic private sector and improving the overall business environment.

“Key to this is increased investment, providing access to finance to small businesses, and supporting educated and skilled women entrepreneurs so their businesses can thrive. Without this, the country risks prolonged stagnation with limited prospects for sustainable development,” he said.

Meanwhile, the partial recovery, coupled with falling food prices, has contributed to a gradual improvement in household welfare.

But most Afghan households continue to struggle to meet basic needs and poverty remains widespread.

“Vulnerable groups, including women, children, and displaced populations, continue to bear the brunt of the economic hardship, due to the lack of social protection mechanisms,” the WB stated.

In addition, Afghanistan’s trade dynamics remain a significant challenge.

In 2023-24, the country’s exports remained stable, but imports surged, leading to a widening trade deficit, the WB reported.

The appreciation of the afghani (AFN) made imports cheaper, fueling demand for foreign goods, while domestic industrial activity revived, increasing the need for imported inputs.

However, the trade deficit, exacerbated by Afghanistan’s reliance on imports for essential goods like fuel, food, and machinery, might pose a risk to the country’s economic stability, the organization stated.

Meanwhile, Deputy Minister of Economy Abdul Latif Nazari said that Afghanistan's economy has a clear outlook and the current problems are caused by sanctions and the freezing of the country's foreign exchange reserves.

“Afghanistan's economic outlook is bright and hopeful. Some of the economic problems that exist are due to sanctions, banking restrictions and the freezing of assets of the Afghan people,” Nazari added.

“Our effort is to free the property of the people of Afghanistan as soon as possible and use it in line with the economic growth and development of the country.”

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