Connect with us

Business

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

Published

on

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.

Business

Afghanistan, Russia discuss expanding trade cooperation

The Ministry of Industry and Commerce said the two sides described the meeting as productive and stressed the need to further expand economic and trade relations between Afghanistan and Russia.

Published

on

Afghanistan and Russia have discussed ways to expand economic and trade cooperation, including increasing exports of Afghan products to Russia and importing Russian machinery and technology into Afghanistan.

Afghanistan’s Minister of Industry and Commerce Nooruddin Azizi met with Nikita Kornienko, Minister of International and Interregional Cooperation of Russia’s Chelyabinsk Region, and his delegation, according to the ministry.

The talks focused on strengthening economic ties, improving coordination between traders from both sides, expanding exports of Afghan goods to Chelyabinsk, importing Russian machinery and modern technologies, and enhancing banking cooperation.

Azizi highlighted the need to increase Afghan exports to Russia and said Afghanistan was ready to establish a distribution centre for Russian goods in Afghanistan and a market for Afghan products in Chelyabinsk.

Kornienko welcomed greater trade cooperation with Afghanistan and invited a delegation from the Islamic Emirate, including private-sector representatives, to visit Chelyabinsk to help strengthen coordination between traders from both sides.

The Ministry of Industry and Commerce said the two sides described the meeting as productive and stressed the need to further expand economic and trade relations between Afghanistan and Russia.

Continue Reading

Business

Afghanistan and Uzbekistan sign 20 trade MoUs worth $267 million

Published

on

Afghanistan’s Ministry of Industry and Commerce says 20 trade memorandums of understanding (MoUs) worth $267 million have been signed following business meetings between Afghan traders and private-sector representatives and officials from Uzbekistan’s Kashkadarya province.

The agreements were signed on the sidelines of a business networking conference between Afghan private-sector representatives and Kashkadarya in Kabul. Officials from Afghanistan’s Ministry of Industry and Commerce, representatives of Kashkadarya province, Uzbekistan’s ambassador to Kabul, and private-sector representatives from both countries attended the conference.

Ahmadullah Zahid, Deputy Minister of Industry and Commerce, said economic relations and trade between Afghanistan and Uzbekistan have increased following visits by delegations from both sides.

He stressed the need to simplify trade and transit procedures and remove existing obstacles. He also said Afghanistan is ready to discuss the transit of its export goods through Uzbekistan.

Shahret Muradov, Deputy Governor of Kashkadarya, said the province is ready to expand trade and industrial cooperation with Afghanistan and host Afghan delegations and traders.

The agreements cover sectors including food products, clothing, construction, livestock, electronic equipment, and furniture.

Continue Reading

Business

Afghanistan transports more than 704,000 tonnes of goods by rail in August

The Hairatan railway route handled the largest share, with 464,767 tonnes, followed by Khaf–Herat with 137,687 tonnes, Torghundi with 62,015 tonnes, and Aqina with 39,831 tonnes.

Published

on

Afghanistan transported more than 704,000 metric tonnes of goods through its railway network in August 2026, the Ministry of Public Works said.

The ministry said 704,300 metric tonnes of petroleum products, non-petroleum goods and other materials were imported and exported through four major railway routes during the month.

The Hairatan railway route handled the largest share, with 464,767 tonnes, followed by Khaf–Herat with 137,687 tonnes, Torghundi with 62,015 tonnes, and Aqina with 39,831 tonnes.

The ministry said the railway network also supported Afghan exports during the month, including 3,751 tonnes of carbonated beverages shipped abroad.

According to the ministry, expanding rail transportation and exports could contribute to job creation, higher national revenues and greater economic stability and self-sufficiency.

The ministry added that the Islamic Emirate is working to improve trade conditions and expand transportation facilities for Afghan traders.

Continue Reading
Advertisement
Advertisement
Advertisement
Advertisement

Trending

Copyright © 2026 Ariana News. All rights reserved!