World Bank: Afghanistan’s Exports Grow Despite Pakistan Route Closures
The World Bank, in its latest report, has said that although Afghanistan’s economy is fragile, it is still progressing.
The report highlights that despite the closure of trade routes with Pakistan, Afghanistan’s exports increased by 13% in October compared to September. Afghan traders have had to find alternative export routes through India and Uzbekistan.
According to the report, India remains the largest importer of Afghan goods, receiving 50% of Afghanistan’s exports in October.
The report states:
“Food exports reached USD 238.4 million in October, up 8.6 percent YoY, reflecting strong regional demand. Cumulatively, food exports grew by 22.4 percent during the first seven months of FY2025, reinforcing their dominant role in Afghanistan’s export portfolio.”
The World Bank also noted that Afghanistan faced major challenges in 2025, including the return of refugees from Iran and Pakistan, severe droughts, repeated earthquakes, multi-day internet blackouts, and temporary closure of trade routes with Pakistan.
The report further noted that inflation had reportedly reached an annual rate of 2.1% in September and had even turned negative during some months. It was also indicated that the government’s domestic revenue saw a 16% increase in the first seven months of the year, surpassing $2.3 billion. Taxes and customs duties were said to remain the primary sources of this revenue.
Economist Mohammad Asif Stanikzai said: “Signs of economic growth in a country include road construction, which has recently accelerated, strengthening the agriculture sector with canal construction underway, modernization of agriculture, and attracting investment in Afghanistan’s natural resources.”
Meanwhile, the Ministry of Economy emphasized that increasing exports and reducing imports are key priorities of the Islamic Emirate’s economic policy, and alternative trade routes are being explored to meet these goals.
Deputy Minister of Economy, Abdul Latif Nazari, said: “Boosting exports and reducing imports are central to the Islamic Emirate’s economic policy. We are working to identify various trade and transit routes. The Islamic Emirate’s policy is to maintain commercial and economic relations with all countries.”
The World Bank also reported that imports increased by 2% in October compared to September, exceeding $1.1 billion.
In the first seven months of the 2025 fiscal year, the total value of imports reached $7.6 billion, showing a 21% annual increase, with raw material imports up by 45%.
