Business
Afghanistan’s economic prospects are bleak: World Bank
The absence of GDP growth coupled with declining external financing avenues for off-budget expenditures paint a bleak picture of Afghanistan’s economic prospects, the World Bank said.
After a severe 20.7 percent GDP contraction in 2021, the Afghan economy contracted further by 6.2 percent in 2022, the bank said in a report.
“While Afghanistan’s agricultural and subsistence economy, including illicit opium production, provided some resilience in rural areas, higher prices, reduced demand, lower employment, and disruptions to services had severe impacts across the country,” it said.
The proportion of households that did not have enough income to meet basic food needs more than doubled from 16 percent to 36 percent in this period, according to the bank.
In the context of deep concerns about the policies of the Islamic Emirate of Afghanistan (IEA), including restrictions imposed on women and girls, the international community, including the World Bank, recalibrated its approach to supporting Afghanistan: first to providing humanitarian support and then to providing off-budget support for basic service delivery and livelihoods.
However, IEA moved to restore domestic revenues, which reached $2.2 billion or 15 percent of GDP in 2022. “Nevertheless, overall economic activity remained depressed, unemployment stayed high, and the banking sector was dysfunctional due to constraints on international transfers and concerns about liquidity and solvency.”
World Bank said that Afghanistan’s economic outlook remains uncertain, with the threat of stagnation looming large until at least 2025. “This economic stagnation will deepen poverty and unemployment, with job opportunities expected to decrease and food insecurity expected to increase.”
The bank noted that for a sustainable future, Afghanistan needs to focus on its comparative advantages, particularly in the agricultural and extractive sectors. Agriculture could be a key driver of growth and poverty reduction, with the potential to create jobs, it added.
Business
Afghan trade delegation visits Bangladesh to boost economic ties
The delegation, led by Deputy Minister of Industry and Commerce Ahmadullah Zahid, includes senior government officials as well as five Afghan traders representing various sectors.
A senior Afghan trade delegation has arrived in Bangladesh on an official visit aimed at strengthening bilateral trade and expanding economic cooperation between the two countries.
The delegation, led by Deputy Minister of Industry and Commerce Ahmadullah Zahid, includes senior government officials as well as five Afghan traders representing various sectors.
According to Afghanistan’s Ministry of Industry and Commerce, discussions during the visit will focus on enhancing trade relations, facilitating exports and imports, and identifying opportunities for joint investment.
Talks are also expected to explore broader commercial cooperation and the potential signing of memoranda of understanding to support long-term trade partnerships.
Officials said the visit is intended to help Afghan traders gain access to new markets, increase export opportunities for Afghan products, and promote closer regional economic integration.
The Ministry emphasized that such high-level engagements play a key role in driving economic growth, expanding trade links, and strengthening the foundations of Afghanistan’s national economy.
Business
500 Jeribs of land allocated for industrial park in Kandahar
The land, located in the Noda area of Daman district, was formally handed over to the Directorate of Industry and Commerce after the completion of all legal and administrative procedures.
Five hundred jeribs of state-owned land have been officially allocated for the construction of an industrial park in Daman district of Kandahar province, based on a decree issued by the Islamic Emirate’s Supreme Leader decree.
The land, located in the Noda area of Daman district, was formally handed over to the Directorate of Industry and Commerce after the completion of all legal and administrative procedures.
The transfer was carried out by the General Directorate of Land Affairs of the Ministry of Agriculture, with technical cooperation from the Kandahar Department of Agriculture, Irrigation and Livestock.
Esmatullah Farhad, director of land transfer and distribution, said a standard industrial park will be developed on the site, providing space for industrial factories and contributing to the growth of industry and expansion of trade in Kandahar.
Officials say the move is part of broader efforts to strengthen economic infrastructure, support investment, and promote domestic production in the country.
Business
Afghanistan Chamber of Commerce officials meet FM Muttaqi to discuss trade issues
Officials from the Afghanistan Chamber of Commerce and Investment (ACCI) met with Foreign Minister Amir Khan Muttaqi on Tuesday to discuss key issues related to trade, transit, and investment in the country.
During the meeting, Syed Karim Hashemi, head of the ACCI, highlighted the importance of attracting foreign investors to various economic sectors and called on the Ministry of Foreign Affairs to provide additional support and facilitation to encourage investment. He also addressed matters concerning the operations and development of the Chamber itself.
Minister Muttaqi welcomed the Chamber’s proposals and pledged full cooperation from the Ministry in trade and transit initiatives, particularly by creating enhanced facilities for foreign investors to promote economic growth in Afghanistan.
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