Business
Afghani falls to record low amid pressing currency shortage
Economists are warning of an acute currency shortage in Afghanistan and the subsequent economic predicament as the Afghani has plummeted to its record low in trading.
The United Nations Development Programme (UNDP) issued a report earlier this week urging prompt actions to prevent the Afghan banking system from collapsing, which is now “in disarray” featuring inadequate liquidity and decreased deposits.
The largest currency exchange market in Kabul now has been crowded with people and the Afghani has dropped to its all-time low.
Before the Islamic Emirate of Afghanistan (IEA)’s takeover of Kabul in mid-August, one U.S. dollar was equal to about 70 Afghanis. But now the exchange rate hovers around 90 Afghanis to the dollar. The continued depreciation of the Afghan currency sparked fears among residents, with many flocking to the exchange market.
“Unfortunately in these two weeks the Afghan currency has been dropping down against foreign currencies with one dollar costing 95.5 Afghanis last week. Then the Afghanistan Bank released a statement that they will put 10 million U.S. dollars into the market, more than the 2.5 million dollars they actually took out. However, the price [of the U.S. dollar] didn’t go down but unfortunately have increased day by day,” said Zirak, spokesman from the all money dealers of Afghanistan.
Zirak said the country’s currency shortage was fueled by the combination of its assets frozen by the United States, the increasing domestic demand for U.S. dollars, as well as banks’ restrictions on dollar withdrawal.
The UNDP report noticed that non-performing loans in Afghanistan had increased from around 30 percent at the end of 2020 to 57 percent in September this year.
With the current trend and withdrawal restrictions, approximately 40 percent of the country’s deposit base will be lost by the end of 2021, said the report.
The currency shortage also comes along with rising prices. Some residents and businessmen in Kabul said that the prices of major commodities, such as food and fuel, have almost doubled compared with last year.
A Kabul resident is calling for the U.S. to release the frozen assets to save people’s lives.
“The U.S. blocked the money of Afghanistan, leading to the economic downturn. The poverty rate has reached its peak and people will die, so we urge the U.S. to release money of Afghanistan because [if not,] sure the people will die,” said Mustafa Bahram.
Business
CASA-1000 power project on track to launch in 2027
Once operational, CASA-1000 is expected to strengthen regional energy security, support economic integration, and expand electricity trade across Central and South Asia.
The long-delayed CASA-1000 energy project is expected to begin commercial operations in summer 2027, with construction in Afghanistan due for completion earlier that year, officials said.
Progress on the power project was reviewed during meetings in Dushanbe between April 18 and 20, involving Tajik authorities, Afghanistan’s state power utility Da Afghanistan Breshna Sherkat, the World Bank, and engineering firm KAMANI Engineering Corporation.
Tajik Energy Minister Daler Juma said the project is key to boosting regional cooperation and enabling the export of surplus hydropower from Central Asia to energy-deficient markets in South Asia.
Construction has already been completed in Kyrgyzstan, Tajikistan and Pakistan, while work continues in Afghanistan. According to officials, the Afghan segment is on track to be finalized by spring 2027, paving the way for full project operations later that summer.
Once operational, CASA-1000 is expected to strengthen regional energy security, support economic integration, and expand electricity trade across Central and South Asia.
Business
Afghanistan, Uzbekistan and Kyrgyzstan agree on framework to boost trade and transit
Officials said the talks focused on easing the movement of goods, particularly Afghan export products destined for Uzbekistan and Kyrgyzstan.
Afghanistan, Uzbekistan and Kyrgyzstan have agreed to strengthen regional trade and transit cooperation following a high-level trilateral meeting held in Tashkent on the sidelines of the INNOPROM Central Asia expo.
Afghanistan’s Minister of Industry and Commerce Nuruddin Azizi met with Laziz Kudratov, Uzbekistan’s Minister of Investment, Industry and Trade, and Sanzhar Iskenderovich Asylkulov, Deputy Minister of Economy and Commerce of Kyrgyzstan, to discuss measures aimed at facilitating transit procedures, increasing trade volumes and expanding Afghan exports to Central Asian markets.
Officials said the talks focused on easing the movement of goods, particularly Afghan export products destined for Uzbekistan and Kyrgyzstan.
At the conclusion of the meeting, the three sides agreed to establish a joint working group to oversee implementation of the proposed initiatives. They also reached agreement on Afghanistan’s membership in the exhibition platform.
The event brings together participants from across Central Asia, as well as Russia and Belarus, providing a platform for industrial cooperation and investment.
Officials say Afghanistan’s participation is expected to open new opportunities for local industries to showcase products and strengthen their presence in regional markets, while the agreement marks a step toward deeper economic integration and improved regional connectivity.
Business
Afghanistan showcases industry at key Central Asia expo
The exhibition brings together government officials, investors and manufacturers from across Central Asia and beyond, including participants from Russia, Belarus, Kazakhstan, Kyrgyzstan and Tajikistan.
Afghanistan is making a notable showing at the INNOPROM Central Asia, one of the region’s largest industrial platforms, as Minister of Industry and Commerce Nuruddin Azizi travels to Uzbekistan to attend the event.
The exhibition brings together government officials, investors and manufacturers from across Central Asia and beyond, including participants from Russia, Belarus, Kazakhstan, Kyrgyzstan and Tajikistan.
It is aimed at promoting industrial development, showcasing advanced technologies and expanding regional investment cooperation.
According to Afghanistan’s Ministry of Industry and Commerce, more than 60 Afghan companies are taking part, representing sectors such as cotton, coal, pharmaceuticals and agricultural products.
Officials say the participation highlights efforts to strengthen trade ties and position Afghanistan as a growing economic partner in the region.
INNOPROM Central Asia is widely regarded as a key platform for fostering industrial collaboration and unlocking new investment opportunities across Central Asia.
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