Business
Concerns grow over economic situation as Kabul banks remain closed

Afghans on Tuesday warned the ongoing closure of banks will lead to an economic crisis in the country and appealed to the Taliban to get the banks to reopen as soon as possible.
This comes after the Ministry of Finance issued a statement Sunday saying that the banks would reopen on Tuesday.
Members of the public said if banks do not open soon they will start demonstrating.
Banks have been closed for more than a week, following the takeover of the country by the Taliban.
Residents said they kept their money in banks as a safety precaution but are now facing extreme difficulties.
“We put our money in the bank because of thieves, but now that the security is maintained, we cannot withdraw our money,” said Yasmin, one Kabul resident.
“We call on the Taliban to open the banks as soon as possible,” said Abdul Wali Noor, another resident.
“I come every day, unfortunately the banks do not open and it has made us more worried. If the banks do not open, we will hold demonstrations,” said Mohammadi, another Kabul resident.
Another resident said: “I have several months worth of salaries in the bank, but the banks have been closed for 10 days. We are starving to death,” said Abdullah, another resident.
Economists also say that the closure of banks has had a negative impact on food prices.
“They (bank employees) say there is no money, and the cash we had is now finished. Shopkeepers also will not let you borrow money,” said Ahmad Shah, another resident.
However, the Ministry of Finance issued a statement Sunday saying that the banks would reopen on Tuesday, but this has not happened.
This comes after the Taliban appointed an acting director for the Central Bank.
Business
Pakistan’s deputy PM discusses Trans-Afghan Railway Line project with Uzbek FM
On Thursday, in a post on X, Pakistan’s Foreign Ministry said Dar hoped that the three countries would soon sign the framework agreement for this important regional connectivity project.

Pakistan’s Deputy Prime Minister and Foreign Minister Ishaq Dar held a telephone conversation with the Foreign Minister of Uzbekistan, Saidov Bakhtiyor Odilovich, on Thursday to discuss the Trans-Afghan Railway Line Project.
This comes after Dar’s recent visit to Kabul, where he held talks with officials on the planned Uzbekistan-Afghanistan-Pakistan Railway Line Project.
The three neighboring countries signed an agreement in February 2021 to construct a 573-kilometer railway line through Afghanistan, connecting landlocked Central Asia to Pakistan seaports, with an estimated cost of $4.8 billion to enhance regional economic connectivity.
On Thursday, in a post on X, Pakistan’s Foreign Ministry said Dar hoped that the three countries would soon sign the framework agreement for this important regional connectivity project.
The two leaders also discussed strengthening bilateral relations, enhancing economic and trade connectivity, promoting people-to-people ties, and exchanged views on current regional and international issues.
Business
Afghanistan’s growth prospects remain uncertain amid global uncertainty: World Bank report
According to the report, in Afghanistan, despite aid cuts, the economy is estimated to have grown by 2.5 percent in FY24-25, which was slower than the pace of population growth.

Amid increasing uncertainty in the global economy, South Asia’s growth prospects have weakened, with projections downgraded in most countries in the region, including Afghanistan.
Stepping up domestic revenue mobilization could help the region strengthen fragile fiscal positions and increase resilience against future shocks, said the World Bank in its twice-yearly regional outlook – the South Asia Development Update – which was released on Wednesday.
According to the report, in Afghanistan, despite aid cuts, the economy is estimated to have grown by 2.5 percent in FY24-25, which was slower than the pace of population growth.
Growth is forecast to increase only moderately to 2.2 percent in 2025/26, the World Bank report stated.
Coinciding with the release of the South Asia report was the World Bank’s Afghanistan Development Update report which explained the situation in more detail.
Stating that while the country’s economy is gradually recovering, the outlook remains uncertain due to growing fiscal pressures, a widening trade deficit and persistent poverty and food insecurity.
The report stated that these factors continue to strain households and hinder inclusive growth.
However, Afghanistan recorded its second consecutive year of growth in 2024, the World Bank stated, adding that the recovery was largely driven by the agriculture sector.
Manufacturing and services remained subdued due to an unfavorable business environment, persistent export barriers and declining foreign aid.
Modest gains in private consumption and real estate investment contributed to growth, the report stated, adding that rising imports widened the trade deficit, increasing external vulnerabilities.
At the same time, rapid population growth and the return of refugees continue to strain job creation and public service delivery, further deepening the fragility of the economy.
Deflation meanwhile persisted in 2024, with food prices having declined sharply. Non-food inflation remained stable. Persistent deflation continued in 2024,
Poverty, food insecurity, and malnutrition however remained pressing challenges and despite modest wage growth, high unemployment and restrictions on women continue to strain livelihoods, the report stated.
Early this year, 14.8 million people faced food shortages, while acute malnutrition – now affecting 4.7 million women and children – is worsening. The World Bank warned that without urgent action, human capital development will be further undermined.
Fiscal pressures meanwhile remained high as domestic revenue mobilization, though relatively strong, is insufficient to offset the sharp decline in aid.
The report also stated that exports declined in 2024, while imports surged – widening the trade deficit.
The increase in imports however was driven by rising industrial demand and substitution of domestic consumer goods.
The afghani (AFN) currency, which had appreciated significantly in 2023 due to strong foreign inflows stabilized with slight depreciation in 2024 but the banking sector remained fragile.
The World Bank reported that economic growth is expected to slow to 2.2 percent in 2025 amid aid disruptions, before gradually recovering to 2.5 percent in 2026–27.
The organization however warned that while Afghanistan’s youth remain a vital source of resilience and untapped potential, urgent action to expand job opportunities for them is needed.
Business
Afghanistan-Kazakhstan trade soars by 32%, target set at $3 billion, says Azizi

Acting Minister of Industry and Commerce, Nooruddin Azizi, stated at the end of the first day of the Kazakh-Afghan trade exhibition that trade volume between the two countries has increased by 32 percent.
He added that both sides aim to raise bilateral trade to $3 billion.
According to a statement from the Ministry of Industry and Commerce, Azizi welcomed the visit of the Kazakh delegation to Afghanistan and expressed appreciation for Kazakhstan’s humanitarian assistance, support, and collaboration, including in the area of digitalizing Afghan government institutions.
Azizi emphasized the importance of connecting Central Asia to South Asia through Afghanistan and discussed expanding trade agreements, holding exhibitions of products and goods in both countries, establishing trade centers in Kabul and Almaty, and facilitating exports and imports between the two nations.
Kazakh Deputy Prime Minister Serik Zhumangarin also stressed that Afghanistan and Kazakhstan are key strategic partners in the region. He described the holding of the business forum as significant for enhancing economic cooperation, establishing new trade relations, exchanging experiences, and promoting joint initiatives.
Zhumangarin stated: “We believe a stable and prosperous Afghanistan is a key factor for peace and stability in the region and has the potential to become a major logistical hub connecting Central and South Asia.”
The exhibition of Kazakhstani products and goods was held at the invitation of the Ministry of Industry and Commerce, with the participation of 25 Kazakh companies.
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