Empty Pockets and Heavy Taxes: Kabul Shopkeepers Struggle Amid Economic Decline
Shopkeepers and vendors in Kabul city are increasingly worried about the declining purchasing power of the public and the shrinking job market.
According to multiple vendors, the combination of widespread unemployment, unstable incomes, capital flight, soaring prices, blocked foreign aid, and a lack of transparent economic governance have all directly contributed to a significant downturn in market activity and consumer spending, a recent article by, Hasht-E-Subh Daily revealed.
Factors such as unstable incomes, capital flight, rising prices, blocked foreign aid, and a lack of transparent economic governance have severely weakened consumer demand and market activity.
Many vendors report that goods remain unsold for extended periods, with customers unable to afford purchases due to joblessness and income reductions. High operational costs—including taxes, rent, and electricity bills—compound the financial strain, while frequent power outages disrupt business further.
Economic experts highlight that, beyond unemployment, the absence of clear and coherent market regulations worsens the situation. They stress the need for transparent laws to control prices and regulate the number of businesses based on local population needs. Additionally, widespread illiteracy and lack of business expertise among entrepreneurs undermine market efficiency.
Since the Taliban’s takeover, Afghanistan’s economic infrastructure has deteriorated significantly. Unemployment has doubled, poverty affects over 97% of the population, and women’s participation in the workforce has drastically declined. Nearly 70% of Afghans lack a steady source of income.
Without urgent reforms to improve market regulation, support entrepreneurship, and create job opportunities, the purchasing power of the public will continue to erode, deepening unemployment and prolonging the country’s economic recession.
