The World Bank recently reported that Afghanistan’s economic growth remains fragile, with citizens becoming increasingly vulnerable to poverty and unemployment.
According to the report, the key factors contributing to this economic instability include the lack of clear policies, financial isolation, a decline in foreign aid, and a fragile trade relationship with Pakistan.
The World Bank’s report states: “Afghanistan’s economic recovery remains unstable for several reasons, including unclear policies, financial isolation, reduced foreign aid, and a fragile trade relationship with Pakistan. Persistent high levels of poverty, unemployment, limited resources, and weak purchasing power continue to leave millions of Afghans, who have suffered from years of war and natural disasters, highly vulnerable.”
The report further reveals that Afghanistan’s trade deficit increased by 54% last year, while exports dropped by 5%. However, officials from the Ministry of Economy reject the World Bank’s findings, claiming that they are detached from Afghanistan’s realities.
Abdul Rahman Habib, the Ministry’s spokesperson, told Salam Watandar: “The latest report by the World Bank is far from the reality of our country, and we reject it. Afghanistan is moving towards financial and economic self-sufficiency by prioritizing natural resources, mining, and efficient use of transit capacities, alongside regional connectivity. These are key issues in reducing unemployment, fostering economic development, and creating jobs.”
Ministry officials also argue that positive international engagement and the release of Afghanistan’s frozen foreign assets could play a constructive role in boosting the country’s economic growth and improving citizens’ livelihoods.
Economic experts acknowledge the ongoing economic challenges in Afghanistan, but they emphasize the significant role of the international community in shaping the current situation.
Nabi Afghan, an economic expert, says: “On the one hand, global sanctions, pressures from neighboring countries, and Afghanistan’s complex situation after recent political changes contribute to this condition. Neighbors are preventing Afghanistan from improving and growing. The responsibility lies with the neighboring countries and global sanctions.”
Another economic expert, Eraj Faqiri, adds: “Initially, we need a political balance to engage with neighboring countries flexibly. We need to manage this process thoughtfully, with well-planned and long-term strategies focused on infrastructure and development programs.”
Political experts also believe that Afghanistan’s current economic situation is influenced by the political status of the de-facto government on the international stage.
Borna Salehi, a political analyst, says: “There is a close relationship between politics and economics, especially in the current situation in Afghanistan. Until the political recognition of the Islamic Emirate is achieved, and the conditions for economic activities with international organizations that provide aid are met, unfortunately, Afghanistan’s economic situation will not improve.”
Since the rise of the Islamic Emirate, most development projects in Afghanistan have been halted. According to data from international organizations, Afghanistan has entered an economic crisis, creating significant challenges for the de-facto government in improving the country’s economic conditions.
