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Afghanistan’s GDP to expand by 3% in 2021: ADB

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The Asian Development Bank (ADB) forecasts that Afghanistan’s gross domestic product GDP growth will increase by 3% in 2021 and 4% in 2022 after the normalization of business activity and market sentiment.

In its Asian Development Outlook (ADO) 2021 released on Wednesday, the ADB stated that Afghanistan’s economic growth is expected to recover this year and accelerate next year after a sharp decline in 2020 from the coronavirus disease (COVID-19) pandemic and continued violence and instability.

“Afghanistan’s economy experienced unprecedented disruption in 2020 due to COVID-19 pandemic, political instability and continued violence, which cut remittances, trade, and revenue,” said ADB Country Director for Afghanistan Narendra Singru. 

“With a successful COVID-19 vaccine rollout and post-pandemic recovery, the country should be on track to achieve economic growth this year and in 2022 as business activity and market sentiment normalize,” Singru said.

According to the report, inflation more than doubled from 2.3% in 2019 to 5.6% in 2020 driven by higher food prices. Food price inflation in 2020 was estimated at 10% with the highest spike recorded in April when border closure and panic buying propelled it to 16.6%. Inflation is projected to moderate to 5.0% in 2021 and 4.0% in 2022 as food supplies improve.

However, risks remain, including implementing vaccinations in remote and insecure areas, conflict, criminality, corruption, political instability, and broader social fragility. If unaddressed, these could weigh heavily on the economy and impede recovery.

“Supporting the recovery of micro, small, and medium-sized enterprises (MSMEs) hard hit by the pandemic is pivotal to safeguarding workers’ incomes and livelihoods, according to the report. Before the pandemic, MSMEs were estimated to provide nearly 1.6 million service and industry jobs. The government approved a 2-year support package worth $295 million in October 2020 to improve business conditions and implemented countercyclical measures that include support for MSMEs,” the report read.

The ADB suggests that Afghanistan should facilitate MSME access to markets by developing infrastructure, improving security, combating corruption, simplifying regulation, strengthening property rights and contract enforcement, and promoting innovation and better labor skills in order to improve the business environment.

“Increasing access to credit and further expanding the formal bank sector is also crucial,” the organization said.

“ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region,” the report concluded.

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Pakistan’s exports to Afghanistan rise by over 64% in 9 months

Overall exports to Afghanistan were recorded at $623.285 million during July-March (FY2024-25) against exports of $378.922 million during the same period last year. 

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Pakistan has reported that its export of goods and services to Afghanistan witnessed an increase of 64.48 percent during the first nine months of the fiscal year (2024-25) as compared to the exports of the corresponding period of last year.

According to the State Bank of Pakistan (SBP), the overall exports to Afghanistan were recorded at $623.285 million during July-March (FY2024-25) against exports of $378.922 million during the same period last year. 

On a year-on-year basis, the exports to Afghanistan decreased by 45.54 percent from $55.907 million in March 2024, against the exports of $30.445 million in March 2025. 

On a month-on-month basis, the exports to Afghanistan also dipped by 15.37 percent during March 2025 as compared to the exports of $35.977 million in February 2025, the SBP data revealed. 

On the other hand, the imports from Afghanistan into the country during the months under review were recorded at $20.127 million against $6.438 million last year, showing an increase of 212.62 percent in July-March (2024-25). 

On a year-on-year basis, the imports from Afghanistan witnessed an increase of 99.79 percent, going up from $0.960 million in March 2024 against the imports of $1.918 million in March 2025. 

On a month-on-month basis, the imports from Afghanistan into the country also witnessed a decrease of 36.23 percent during March 2025, as compared to the imports of $3.008m during February 2025, according to the data.

 

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Chinese company keen to invest $50 million in automobile industry in Afghanistan

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Chinese automobile company Dongfeng has expressed an interest to invest $50 million in Afghanistan.

A representative of the company said in a meeting with Ahmadullah Zahid, Deputy Minister of Industry and Commerce, that the company wants to invest $50 million in the automobile manufacturing sector in Afghanistan in four phases over a period of three and a half years.

He added that with this investment, 2,000 vehicles will be manufactured per year.

Welcoming the company’s interest in investing in the country Ahmadullah Zahid, the Deputy Minister of Industry and Commerce, described Afghanistan as one of the safe and secure places for investment with favorable profits.

He assured the Chinese that all domestic and foreign investors will be treated equally and will be fully supported.

In the meeting, the representative of Dongfeng also emphasized that the company’s investment in Afghanistan will create jobs for 500 to 700 people in the country.

He said that the company’s products will include cars, trucks, ambulances, and buses.

 

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Kyrgyzstan exports 25 million liters of petrol to Afghanistan in 2 months

The gasoline, worth $11.5 million, was exported to Afghanistan during January and February this year

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Kyrgyzstan has in two months exported 24.9 million liters of gasoline to Afghanistan, the Kyrgyz National Statistics Committee said Monday. 

According to local media, the gasoline, worth $11.5 million, was exported during January and February this year. 

Exports of gasoline to Afghanistan have been steadily rising over the past two years. 

In the first six months of last year, 700 liters went to Afghanistan, against just 19 liters in the same period in 2023. 

Overall trade between the two countries also saw a steady increase after the Kyrgyz government removed the Islamic Emirate of Afghanistan (IEA) from their list of banned organizations in September last year. 

Afghanistan is now the main consumer of Kyrgyz motor gasoline, accounting for about 92 percent of all exports of this fuel.

While Afghanistan has its own oil and gas reserves, particularly in the Amu Darya basin, it relies heavily on imports, especially from Central Asian countries and Iran, to meet its energy needs. 

 

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