Sanctions seen as major obstacle to Afghanistan’s five-year development plan

Afghanistan’s newly unveiled five-year development strategy, intended to chart the country’s path toward economic and social progress, faces formidable challenges due to international sanctions and banking restrictions, officials and experts warn.

The strategy, announced by the Islamic Emirate, is built on three main pillars and 15 priority sectors.

Six of these focus directly on economic development, including sustainable use of natural resources, agricultural and livestock growth, energy security, improved financial management, electricity expansion, and the development of transport and transit infrastructure.

Officials from the Ministry of Economy said the plan provides a clear roadmap for the country’s future, but acknowledged that sanctions imposed by the international community and restrictions in global banking networks have severely limited implementation.

Frozen Afghan assets abroad, coupled with the absence of formal ties to global banks, continue to block investment and smooth money transfers, both of which are critical for large-scale development.

“The strategy is a unified document aimed at aligning state resources with Afghanistan’s national priorities,” a ministry spokesperson said, noting that it had been approved under the directive of the Supreme Leader of the Islamic Emirate.

Its three pillars also cover governance and international relations, as well as security and public order, alongside economic and social development.

Economic experts argue that if implemented effectively, the plan could help stabilize Afghanistan’s fragile economy, generate jobs, and reduce dependency on aid.

However, they caution that the country’s isolation from the global financial system remains a major obstacle. Without progress in easing restrictions and rebuilding international partnerships, many of the strategy’s goals may prove difficult to achieve.

Since the Islamic Emirate returned to power in 2021, Afghanistan has struggled under the weight of sanctions, with billions of dollars in assets frozen abroad.

Humanitarian aid continues to flow, but development funding — needed for long-term recovery and infrastructure — remains limited.