Business
Afghanistan’s 2026 Development Framework meeting highlights self-reliance and economic stability
The Ministry said these measures helped preserve relative economic stability and deliver stronger economic growth compared with the previous year.
The Ministry of Economy of Afghanistan says a coordination meeting on the United Nations’ 2026 Development Framework for Afghanistan was held under the chairmanship of Qari Din Mohammad Hanif, Minister of Economy, focusing on advancing national development priorities and long-term economic stability.
The meeting was attended by representatives from the Ministry of Foreign Affairs, the United Nations Assistance Mission in Afghanistan (UNAMA), heads of UN agencies operating in the country, delegates from the European Union, and a range of international organizations.
During the session, the Minister of Economy outlined Afghanistan’s current situation, recent achievements, and key economic priorities, while expressing appreciation for the continued support of international partners during challenging years.
According to the Ministry, Afghanistan faced severe economic, social, and climate-related pressures in 2025.
These included the impacts of climate change and natural disasters, the forced return of more than two million Afghan migrants from neighboring countries, ongoing sanctions, frozen foreign reserves, and a sharp decline in development and humanitarian assistance. Together, these factors have significantly affected the livelihoods of vulnerable communities.
Despite these challenges, the Islamic Emirate has implemented a series of economic and development programs centered on prudent policymaking and national priorities.
The Ministry said these measures helped preserve relative economic stability and deliver stronger economic growth compared with the previous year.
Improved economic governance, support for domestic production and the private sector, exchange rate stability, export growth, national infrastructure projects, inflation control, and increased domestic revenues were cited as key contributors.
The Ministry also highlighted the role of the United Nations in addressing urgent humanitarian needs, noting that UN assistance has been critical in responding to climate impacts, supporting migrants and returnees, strengthening food security and livelihoods, delivering basic health services, and reducing overall human suffering.
Data from the Ministry of Economy show that around $1.009 billion in international assistance was allocated to Afghanistan in 2025 across various sectors, with approximately $590 million earmarked for project expenditures. However, figures from the UN Office for the Coordination of Humanitarian Affairs indicate a significant drop in humanitarian funding, with only 36 percent of the $2.4 billion required having been secured.
The Ministry emphasized that sustainable economic stability can only be achieved through self-reliance, growth-driven economic policies, and constructive engagement with the international community.
Afghanistan’s Development Strategy, a long-term framework developed under the leadership of the Economic Deputy of the Prime Minister and coordinated by the Ministry of Economy, aims to promote balanced development, job creation, poverty reduction, infrastructure expansion, private sector support, and environmental protection.
Business
Afghanistan inaugurates first phase of Kandahar cement factory
According to officials, the first phase of the factory has a daily production capacity of 1,500 metric tons of cement and is expected to generate thousands of direct and indirect jobs.
Afghanistan has inaugurated the first phase of the Shorandam Cement Factory in Kandahar province, marking a step toward expanding domestic cement production and reducing reliance on imports.
Mullah Abdul Ghani Baradar, Deputy Prime Minister for Economic Affairs, officially opened the facility on Thursday at a ceremony attended by senior officials of the Islamic Emirate.
Speaking at the ceremony, Baradar said sustainable economic development requires the effective use of domestic resources and a shift from a consumer-based economy to a production-driven one.
He stressed the need to boost local production, reduce imports, expand exports and strengthen the country’s industrial sector.
According to officials, the first phase of the factory has a daily production capacity of 1,500 metric tons of cement and is expected to generate thousands of direct and indirect jobs. Work on the second phase is also expected to begin in the future.
Hidayatullah Badri, Minister of Mines and Petroleum, said cement production had resumed in Afghanistan for the first time since the Islamic Emirate returned to power.
He added that six major cement production projects are currently underway across the country, involving a combined investment of $662 million.
According to Badri, the projects are expected to create employment opportunities for around 15,000 people and meet nearly 50 percent of Afghanistan’s domestic cement demand once completed.
Islamic Emirate spokesperson Zabihullah Mujahid also welcomed the factory’s inauguration, describing it as positive news for the country and emphasizing the importance of maintaining production quality and industrial standards.
Afghanistan currently relies heavily on imported cement to meet domestic demand. The expansion of local production is expected to reduce dependence on imports, support the construction industry and create employment opportunities.
Business
WFP report notes high food and fuel costs continue to pressure Afghan households
Pastoralist households also faced declining purchasing power. The sale of a one-year-old female sheep could buy 260 kilograms of low-priced wheat flour, 12% less than a year earlier.
Rising food, fuel and agricultural input costs continue to strain Afghan households despite a relatively strong afghani (AFN), according to the World Food Programme’s (WFP) latest weekly market report.
The afghani traded at an average of 64.9 against the US dollar in the first week of October, remaining 2% stronger than a year earlier and 7% above its three-year average. However, several staple foods and essential agricultural inputs remained significantly more expensive than a year ago.
WFP’s report found that prices for Palawi rice were 17% higher than last year, while the lower-priced Sholae variety had risen by 31%. Cooking oil and sugar prices were also up 12% and 10%, respectively, while wheat grain and low-priced wheat flour were both 10% more expensive.
Fuel costs continued to add pressure, with diesel selling at an average of AFN 80.9 per litre, 3% higher than a year earlier and 14% above its three-year average. Fertiliser prices also remained elevated, with urea up 24% and diammonium phosphate (DAP) up 10% year-on-year.
The report highlighted growing pressure on household purchasing power as wages and employment opportunities weakened. Unskilled labour availability averaged just two days per week, 14% below the previous year and 21% below the three-year average. Daily wages for unskilled workers were also 5% lower than a year earlier.
As a result, an unskilled labourer’s daily wage could purchase an average of 9.9 kilograms of low-priced wheat flour, down 13% from a year earlier. The real purchasing power of unskilled labour households fell by 25% year-on-year and stood 30% below the three-year average.
Pastoralist households also faced declining purchasing power. The sale of a one-year-old female sheep could buy 260 kilograms of low-priced wheat flour, 12% less than a year earlier.
Some commodities recorded price declines during the week. Potato prices fell by 4.1%, onions by 3.1% and Palawi rice by 1.9%. However, potatoes remained 25% more expensive than a year earlier, while Palawi rice was 19% above its three-year average.
WFP said the in-kind food basket cost AFN 6,033 in the first week of October, 4% higher than a year earlier. The report also noted significant differences in prices between provinces, reflecting variations in transport costs, market supplies and seasonal availability.
The findings underscore continued pressure on Afghan households, as high essential commodity prices, weak labour availability and declining purchasing power limit access to food despite support from the stronger national currency.
Business
Iran moves to ease export barriers to Afghanistan, Pakistan and Iraq
If implemented, the proposals could help address some of the obstacles facing Iranian exporters trading with neighboring markets, including Afghanistan.
Iran is reviewing measures to remove barriers to exports to neighboring countries, including Afghanistan, Pakistan and Iraq, as part of efforts to support exporters facing transportation and logistics challenges, a senior Iranian Foreign Ministry official said.
Hamid Ghanbari, Iran’s deputy foreign minister for economic diplomacy, announced the proposals following the 12th meeting of the Economic Relations Coordination Headquarters, which focused on trade diplomacy and non-oil exports.
The meeting, held at the Iranian Foreign Ministry on Saturday, brought together economic deputies from government agencies to discuss exporters’ challenges and coordinate practical solutions.
Ghanbari said disruptions to transportation and logistics had prevented some exporters from fulfilling their obligations. In other cases, exporters who had received foreign currency to import raw materials were unable to complete their purchases because of difficulties along transportation routes.
To address these challenges, Iranian authorities have proposed revising existing procedures and regulations governing exporters’ obligations. Ghanbari said the proposed measures had received approval from relevant government agencies.
Iran Seeks to Facilitate Regional Trade
The Iranian official also highlighted proposals to resolve problems affecting exports to neighboring countries, particularly Afghanistan, Pakistan and Iraq.
He said the proposals could be pursued through negotiations with foreign counterparts, with Iran’s embassies and consulates expected to follow up on the relevant issues.
The initiative comes as Iran seeks to maintain its export flows and strengthen regional trade links despite ongoing economic and logistical challenges.
Ghanbari expressed hope that the measures would help preserve existing export markets, improve the targeting of shipments and support further growth in Iran’s non-oil exports.
However, the specific measures for Afghanistan, Pakistan and Iraq, as well as the timeline for their implementation, have not yet been announced.
If implemented, the proposals could help address some of the obstacles facing Iranian exporters trading with neighboring markets, including Afghanistan.
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