Business
World Bank says Afghanistan private sector adversely affected due to economic crisis
A World Bank survey has said that Afghanistan’s ongoing economic crisis has adversely affected economic activities in the country with the private sector suffering the most.
The survey was carried out in October and November and was made public on Thursday, April 7, 2022.
The survey indicates that most Afghan traders complain about the lack of demand in markets, which has reduced economic activities and investment in the country.
One in three respondents of the survey has said that they have suspended their businesses after August 2021.
Based on the findings of the survey, 38 percent of small firms have suspended their operations, 35 of medium firms have been closed, and 25 percent of big firms have stopped their activities.
In the meantime, the existing economic situation has also impacted women-run businesses, and 42 percent of these businesses have been suspended.
Private sector members also approved the findings of the survey.
“We believe that some post-transformation economic problems have arisen, but the cause is the World Bank itself. Had they not stimulated Afghanistan’s economic systems, Afghanistan’s economy would not have been in trouble,” said Sherbaz Kaminzada, CEO of Afghanistan Chamber of Commerce and Industries.
The Afghan Ministry of Finance rejected the report and questioned its accuracy. Its officials said that economic activities in the country have increased over the past few months and that Afghanistan is still developing economically.
“First of all, we have to see how accurate this report is. The other thing is that the World Bank itself is to blame for the economic crisis in Afghanistan. Our assets have been blocked and sanctions have been imposed. These are all the problems,” said Ahmad Wali Haqmal, the finance ministry’s spokesman.
The World Bank survey also points to unemployment after the 15th of August 2021 and says that companies in Afghanistan have laid off more than half of their employees, majority of them being women.
Business
Russia almost doubles LPG exports to Central Asia, Afghanistan this year
Russia has almost doubled exports of liquefied petroleum gas in the January – November period to ex-Soviet republics in Central Asia and Afghanistan to 1.016 million metric tons, Reuters reported citing sources on Friday.
Moscow has had to divert supplies of LPG, or propane and butane, from Europe, which introduced restrictions on LPG imports from Russia in December 2024 over the war in Ukraine.
Traders said supplies to Afghanistan, as well as to Kazakhstan, Kyrgyzstan, Tajikistan and Uzbekistan now account for around 36% of Russia’s total LPG exports, up from 19% in 2024.
Afghanistan is Russia’s largest buyer of LPG in that region. In July, Russia accepted the credentials of a new ambassador of Afghanistan, making it the first nation to recognise the country’s Islamic Emirate government.
According to the sources, supplies of Russia’s LPG to the country, including from Kazrosgaz, a joint venture with Kazakhstan, have jumped 1.5 times in the first 11 months of the year to 418,000 tons.
Traders said that Russia’s LPG supplies to Afghanistan have increased partially at the expense of declining supplies from Iran, which has been sanctioned by the United States.
Business
Major power projects launched in Herat
Baradar urged contracting companies and technical teams to complete the projects with high quality and within the specified timeframe.
Mullah Abdul Ghani Baradar, Deputy Prime Minister for Economic Affairs, on Thursday announced the launch of four major electricity projects and the inauguration of five others in Herat province, with a total investment valued at 3.98 billion afghanis.
Speaking at an official ceremony, Baradar described the projects as vital for Afghanistan’s industrial and economic development. He said that once completed, the projects will provide 24/7 electricity to all industrial parks in Herat, as well as to commercial centers, rural areas, and residential neighborhoods, ensuring stable and reliable power supply.
Baradar also pledged incentives for investors in cold storage facilities, announcing a five-year tax exemption and guaranteeing uninterrupted electricity supply by Afghanistan’s power utility. He encouraged both domestic and foreign investors to take advantage of these opportunities.
Emphasizing the Islamic Emirate’s balanced foreign policy, Baradar said the government’s main focus remains economic growth, security stability, and good governance, urging the international community to pursue engagement with Afghanistan instead of restrictive policies.
Among the projects inaugurated is a 130-kilometer-long 220-kilovolt power transmission line from Turkmenistan, along with the construction of four substations in the districts of Karukh, Pashtun Zarghun, Obey, and Chesht-e-Sharif, which will supply electricity to around 40,000 households.
Newly launched projects include the construction of the Pul-e-Hashemi substation, expansion of the 24 Hoot Martyrs substation, creation of a second line at the Noor-ul-Jihad substation, and the extension of power transmission lines linking the Pul-e-Hashemi, Noor-ul-Jihad, and 24 Hoot Martyrs substations.
Baradar urged contracting companies and technical teams to complete the projects with high quality and within the specified timeframe.
Business
Sharp drop in exports to Afghanistan drives Pakistan’s trade deficit surge
Meanwhile, Afghanistan is actively seeking alternative trade routes and partnerships to reduce future reliance on Pakistan’s commercial channels and strengthen its economic independence.
Recent data from Pakistan’s central bank reveals that a sharp decline in exports to Afghanistan has become a key factor behind the country’s growing trade deficit, challenging previous claims by Pakistani officials that halting trade with Afghanistan would not harm their economy.
According to the State Bank of Pakistan, the trade deficit with nine neighboring countries increased by more than 39 percent in the first five months of the 2025–2026 fiscal year, rising from $4.4 billion to $6.2 billion. The report highlights that reduced exports to countries such as China and Afghanistan played a central role in this increase.
Exports from Pakistan to Afghanistan fell dramatically by over 94 percent during this period, dropping from $408 million last year to approximately $210 million. Economic analysts note that Afghanistan has historically been one of Pakistan’s key export markets, particularly for food items, cement, medicine, and daily-use goods—products that cannot be easily replaced.
The steep decline follows the complete suspension of trade between the two countries in October 2025. Despite previous statements by Pakistani officials asserting that reduced or halted trade with Afghanistan would not negatively impact Pakistan’s economy, the latest figures suggest otherwise.
Meanwhile, Afghanistan is actively seeking alternative trade routes and partnerships to reduce future reliance on Pakistan’s commercial channels and strengthen its economic independence.
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