World Bank Report: Afghanistan’s Exports Decline by 14% Amid Economic Challenges
The World Bank reports a 14% decrease in Afghanistan’s exports from January 1 to September 1, 2024, primarily due to changes in Pakistan’s trade policies and increased taxes on Afghan agricultural products, Hasht-e-Subh Daily reported in an article yesterday, adding that the total exports reached over $920 million during this period.
The report highlights ongoing challenges in Afghanistan, including weak human capital, high unemployment, widespread poverty, and food insecurity. It notes that demand does not align with supply, further complicating the economic landscape. Pakistan remains Afghanistan’s largest export market, accounting for 46% of total exports, followed by India at 28%. Iran has emerged as the largest source of imports, comprising 30% of total imports.
In August 2024, the Consumer Price Index (CPI) decreased by 6.7% compared to the previous year, driven by an 11.5% drop in food prices and a 1.8% decrease in non-food goods. Despite these reductions, core inflation, which excludes volatile items, fell by only 1.4%, indicating persistent supply-demand mismatches.
Trade barriers, including increased tariffs by Pakistan and border closures, have disrupted exports, particularly in coal, which saw a 71% decline. Afghanistan’s coal exports fell from $209 million to $61 million, with exports to Pakistan dropping by 23%. Additionally, mineral imports rose by 29%, indicating potential growth in Afghanistan’s manufacturing sector.
The report underscores the need for Afghanistan to enhance the competitiveness of its products, particularly in raw minerals, and calls attention to the socio-economic restrictions imposed by the Taliban, which hinder future progress.
