Economic and Political Overview

Afghanistan: Economic and Political Overview

In this page: Economic Indicators | Foreign Trade in Figures | Sources of General Economic Information | Political Outline | COVID-19 Country Response

Economic Indicators

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Afghanistan's economic recovery came to halt with the Covid-19 outbreak in 2020, weighing on already fragile consumer and investor sentiment and slowing trade flows on the country's borders. Furthermore, since the Taliban regained power in August 2021, the situation in the country is widely reported to have worsened. A complete collapse of banking infrastructure alongside an increase in poverty and hunger has meant that the country is in dire need of humanitarian aid. Although the main global financial institutions do not provide official data, Afghanistan’s GDP is estimated to have contracted by around one-fifth in 2021, with a negative outlook over the forecast horizon. Household consumption (80% of GDP) could contract by 40% as many Afghans are working for no pay, especially in the public sector.

The sudden halt in the flow of aid in the form of grants, including dollar banknotes (previously 40% of GDP), which followed the takeover of the Taliban, has led to the Afghani depreciating against the dollar by almost one-third between the end of 2020 and the end of 2021. Coface expects the currency value to fall further in 2022. The authorities intend to curb the rising budget deficit in 2022 by adopting a 10% rate of VAT. The majority of the new government’s revenues is coming from poppy cultivation and opiate trafficking (estimated at USD 6.6 billion in 2021). Humanitarian aid resumed by the end of 2021 (USD 280 million by the World Bank through the special fund for the reconstruction of the country, plus USD 10 million in debt service relief from the IMF). Meanwhile, following the U.S. decision to suspend and freeze foreign exchange reserves (estimated at over USD 9 billion) the country was forced to reduce its imports. Overall, the public debt, which has been mainly external and very low, is expected to increase and could lead to a sovereign debt default.

Afghanistan is one of the poorest countries in the world, with a GDP per capita (PPP) of around USD 2,474. The population faces unemployment, poor sanitary conditions, weak basic infrastructures (health, water, electricity) and insecurity. According to the World Bank database, the 2021 unemployment rate was equal to 11.7% of the total labour force; however, it should be noted that the undeclared employment rate is higher. Although an Afghan middle-class had begun to emerge - primarily composed of expatriates who grew up in Iran or Pakistan - they tend to be discouraged by the economic and political situation in the country. As such, immigration to Western countries increased significantly in recent years and constitutes a major risk for the country's long-term development. Moreover, the restriction of women's employment imposed by the Taliban may inflict an additional economic loss estimated between 3 and 5% of GDP (Coface).

Main Sectors of Industry

Agriculture was traditionally a driving force of the Afghan economy. Prior to Taliban rule and decades of conflict, Afghanistan was not only able to produce enough food for its own population but also exported many agricultural products, such as almonds, pomegranates, pistachios, raisins, and apricots. Nevertheless, agriculture is now on the way to recovery, mainly through international aid, and continues to be the main source of income for many households. Agriculture accounts for 27% of GDP and employs 42.5% of the labour force (World Bank, latest data available). The 2021 aggregate cereal production was estimated at 4.8 million tonnes by FAO, more than 20% below the 2020 harvest and 12% below average.

Industry is still largely at its infant stage, and dependent on small-scale manufacturing (mainly textile) but also mining and energy production. Manufacturing is the only sector that employs predominantly women (65% of all manufacturing workers are female). Industry as a whole accounts for 12.5% of GDP and employs 18.5% of total workforce. The manufacturing sector’s share of GDP stands at 7.6%.

After years of expansion, the services sector employs 39% of the workforce and accounts for 56.1% of the GDP. Community, social and personal services take up a considerable share of the tertiary sector, followed by whole and retail trade. Financing, insurance, real estate and business services are nearly non-existent and employ 1% of the workforce. It is important to note that official statistics do not take into account illicit activities, such as poppy culture, opium and heroin trafficking as well as cross-border smuggling, which are thought to account for a significant share of the economy.

Breakdown of Economic Activity By Sector	Agriculture	Industry	Services
Employment By Sector (in % of Total Employment)	42.5	18.5	39.0
Value Added (in % of GDP)	33.5	15.6	46.5
Value Added (Annual % Change)	-2.8	-14.2	-32.7

Source: World Bank - Latest available data.

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Monetary Indicators	2016	2017	2018	2019	2020
Afghanistan Afghani (AFN) - Average Annual Exchange Rate For 1 MUR	1.91	1.97	2.12	2.19	1.95

Source: World Bank - Latest available data.

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Country Risk

See the country risk analysis provided by Coface.

Foreign Trade in Figures

After the collapse of the Taliban Government in 2001, Afghanistan opened up to international trade. The state has very few commercial barriers for imported products, and customs duties have been kept flat given weak imports. The share of trade peaked at 49.2% of GDP in 2018 before falling to 45.6% in 2019 (World Bank, latest data available). Afghanistan traditionally exports items with low value, such as dried fruit, carpets, cotton, cereals and non-alcoholic beverages. Its main items of import include wheat, peat, textile and petroleum products. Although not officially recorded, opium remains the main export of the country (as of 2021, Afghanistan's harvest produced more than 90% of illicit heroin globally, and more than 95% of the European supply).

Afghanistan usually trades with its neighbours, with Pakistan being its major trade partner. Pakistan, along with India, receive around 75% of Afghan exports, followed by the United Arab Emirates, China and Turkey. Iran is the main supplier of goods in Afghanistan, followed by China, Pakistan and Kazakhstan. The poor state of its infrastructure, a legal and business framework that is still under development and continued insecurity act as de facto trade barriers. Nonetheless, at the end of 2015, Afghanistan's application to join the WTO was approved by its member states. Furthermore, the IMF and Afghanistan have been working to establish economic policies to improve the country's trade balance. The development of trade with Central Asia and Iran could increase exports along with the opening of a new railway linking China to Afghanistan via Kazakhstan, Uzbekistan, Kyrgyzstan and Tajikistan.

According to the last available data from WTO, in 2020 exports edged down to USD 732 million from USD 864 million a year earlier; whereas imports increased to USD 7.1 billion (+5.8%). Concerning services, imports stood at USD 1 billion in 2020, while exports reached USD 597 million (-10.1% and +18.4%, respectively). As can be seen from the above figures, Afghanistan has a structural trade deficit, which is expected to worsen following the establishment of the Taliban regime.

Foreign Trade Indicators	2017	2018	2019	2020	2021
Imports of Goods (million USD)	7,580	7,407	6,777	7,171	5,574
Exports of Goods (million USD)	780	875	864	732	1,037
Imports of Services (million USD)	1,054	1,311	1,160	1,042	0
Exports of Services (million USD)	253	621	504	597	0
Trade Balance (million USD)	-5,932	-5,746	-5,294	-5,101	n/a
Trade Balance (Including Service) (million USD)	-6,804	-6,378	-5,855	-5,507	n/a

Source: WTO – World Trade Organisation ; World Bank , Latest Available Data

Main Partner Countries

Main Customers (% of Exports)	2019
India	47.1%
Pakistan	34.3%
China	3.6%
Türkiye	2.9%
United Arab Emirates	2.9%
Iran	1.7%
Iraq	1.7%
Germany	1.3%
Saudi Arabia	1.1%
Tajikistan	0.6%
Kazakhstan	0.4%
United States	0.3%
Uzbekistan	0.2%
Russia	0.2%
United Kingdom	0.2%
Jordan	0.2%
Canada	0.2%
Turkmenistan	0.1%
Australia	0.1%
Lebanon	0.1%
See More Countries	9.3%

Main Suppliers (% of Imports)	2019
Iran	14.6%
China	13.9%
Pakistan	12.9%
United States	9.1%
Turkmenistan	8.1%
Kazakhstan	6.1%
India	5.3%
Uzbekistan	5.1%
Malaysia	3.7%
Türkiye	3.4%
Russia	3.0%
Japan	2.7%
United Arab Emirates	1.8%
Tajikistan	1.4%
Germany	1.0%
Vietnam	0.9%
South Korea	0.8%
Kenya	0.7%
Belarus	0.6%
Azerbaijan	0.6%
See More Countries	41.5%

Source: Comtrade, Latest Available Data

Main Products

0.9 bn USD of products exported in 2019
Grapes, fresh or driedGrapes, fresh or dried	15.0%
Vegetable saps and extracts; pectic substances,...Vegetable saps and extracts; pectic substances, pectinates and pectates; agar-agar and other mucilages and thickeners derived from vegetable products, whether or not modified,	13.2%
Other nuts, fresh or dried, whether or not shelled...Other nuts, fresh or dried, whether or not shelled or peeled (excl. coconuts, brazil nuts and cashew nuts)	11.6%
Dates, figs, pineapples, avocados, guavas, mangoes...Dates, figs, pineapples, avocados, guavas, mangoes and mangosteens, fresh or dried	9.8%
Coal; briquettes, ovoids and similar solid fuels...Coal; briquettes, ovoids and similar solid fuels manufactured from coal	8.0%
Onions, shallots, garlic, leeks and other...Onions, shallots, garlic, leeks and other alliaceous vegetables, fresh or chilled	4.1%
Seeds of anis, badian, fennel, coriander, cumin or...Seeds of anis, badian, fennel, coriander, cumin or caraway; juniper berries	3.4%
Ginger, saffron, turmeric "curcuma", thyme, bay...Ginger, saffron, turmeric "curcuma", thyme, bay leaves, curry and other spices (excl. pepper of the genus piper, fruit of the genus capsicum or of the genus pimenta, vanilla, cinnamon, cinnamontree flowers, cloves [wholefruit], clove stems, nutmeg, mace, cardamoms, seeds of anise, badian, fennel, coriander, cumin and caraway, and juniper berries)	3.0%
Carpets and other textile floor coverings, of...Carpets and other textile floor coverings, of textile materials, knotted, whether or not made up	2.9%
Tomatoes, fresh or chilledTomatoes, fresh or chilled	2.8%
Cotton, carded or combedCotton, carded or combed	2.7%
Dried apricots, prunes, apples, peaches, pears,...Dried apricots, prunes, apples, peaches, pears, papaws "papayas", tamarinds and other edible fruits, and mixtures of edible and dried fruits or of edible nuts (excl. nuts, bananas, dates, figs, pineapples, avocados, guavas, mangoes, mangosteens, citrus fruit and grapes, unmixed)	2.3%
Natural steatite, whether or not roughly trimmed...Natural steatite, whether or not roughly trimmed or merely cut, by sawing or otherwise, into blocks or slabs of a square or rectangular shape; talc	2.1%
Seeds, fruits and spores, for sowing (excl....Seeds, fruits and spores, for sowing (excl. leguminous vegetables and sweetcorn, coffee, tea, maté and spices, cereals, oil seeds and oleaginous fruits, and seeds and fruit used primarily in perfumery, medicaments or for insecticidal, fungicidal or similar purposes)	2.1%
Apricots, cherries, peaches incl. nectarines,...Apricots, cherries, peaches incl. nectarines, plums and sloes, fresh	1.8%
Fresh strawberries, raspberries, blackberries,...Fresh strawberries, raspberries, blackberries, back, white or red currants, gooseberries and other edible fruits (excl. nuts, bananas, dates, figs, pineapples, avocados, guavas, mangoes, mangosteens, papaws "papayas", citrus fruit, grapes, melons, apples, pears, quinces, apricots, cherries, peaches, plums and sloes)	1.7%
Other oil seeds and oleaginous fruits, whether or...Other oil seeds and oleaginous fruits, whether or not broken (excl. edible nuts, olives, soya beans, groundnuts, copra, linseed, rape or colza seeds and sunflower seeds)	1.6%
Cucumbers and gherkins, fresh or chilledCucumbers and gherkins, fresh or chilled	1.2%
Apples, pears and quinces, freshApples, pears and quinces, fresh	1.2%
Dried leguminous vegetables, shelled, whether or...Dried leguminous vegetables, shelled, whether or not skinned or split	1.0%
Articles of lead, n.e.s.Articles of lead, n.e.s.	0.8%
Fruit and nuts, uncooked or cooked by steaming or...Fruit and nuts, uncooked or cooked by steaming or boiling in water, frozen, whether or not containing added sugar or other sweetening matter	0.7%
RiceRice	0.6%
Waste of wool or of fine or coarse animal hair,...Waste of wool or of fine or coarse animal hair, incl. yarn waste (excl. garnetted stock, waste of hair and bristles used in the manufacture of brooms and brushes, and of horsehair from the mane or tail)	0.6%
Guts, bladders and stomachs of animals (other than...Guts, bladders and stomachs of animals (other than fish), whole and pieces thereof, fresh, chilled, frozen, salted, in brine, dried or smoked	0.5%
Cotton sewing thread, whether or not put up for...Cotton sewing thread, whether or not put up for retail sale	0.4%
Raw hides and skins of bovine "incl. buffalo" or...Raw hides and skins of bovine "incl. buffalo" or equine animals, fresh, or salted, dried, limed, pickled or otherwise preserved, whether or not dehaired or split (excl. tanned, parchment-dressed or further prepared)	0.4%
Melons, incl. watermelons, and papaws "papayas",...Melons, incl. watermelons, and papaws "papayas", fresh	0.4%
Buckwheat, millet, canary seed and other cereals ...Buckwheat, millet, canary seed and other cereals (excl. wheat and meslin, rye, barley, oats, maize, rice and grain sorghum)	0.4%
Tanned or crust hides and skins of goats or kids,...Tanned or crust hides and skins of goats or kids, pigs, reptiles and other animals, without wool on, and leather of hairless animals, whether or not split (excl. further prepared and leather of bovine and equine animals, sheep and lambs)	0.3%
Fruit juices, incl. grape must, and vegetable...Fruit juices, incl. grape must, and vegetable juices, unfermented, not containing added spirit, whether or not containing added sugar or other sweetening matter	0.2%
Swedes, mangolds, fodder roots, hay, alfalfa,...Swedes, mangolds, fodder roots, hay, alfalfa, clover, sainfoin, forage kale, lupines, vetches and similar forage products, whether or not in the form of pellets	0.2%
Cigars, cheroots, cigarillos and cigarettes of...Cigars, cheroots, cigarillos and cigarettes of tobacco or of tobacco substitutes	0.1%
Raw skins of sheep or lambs, fresh, or salted,...Raw skins of sheep or lambs, fresh, or salted, dried, limed, pickled or otherwise preserved, whether or not dehaired or split (excl. those with wool on, fleeces of astrakhan, caracul, persian, broadtail or similar lambs, or of indian, chinese, mongolian or tibetan lambs and tanned, parchment-dressed or further prepared)	0.1%
See More Products	42.4%

8.6 bn USD of products imported in 2019
Peat, incl. peat litter, whether or not...Peat, incl. peat litter, whether or not agglomerated	9.3%
Petroleum oils and oils obtained from bituminous...Petroleum oils and oils obtained from bituminous minerals (excl. crude); preparations containing >= 70% by weight of petroleum oils or of oils obtained from bituminous minerals, these oils being the basic constituents of the preparations, n.e.s.; waste oils containing mainly petroleum or bituminous minerals	9.2%
Wheat or meslin flourWheat or meslin flour	6.6%
Animal or vegetable fats and oils and their...Animal or vegetable fats and oils and their fractions, boiled, oxidised, dehydrated, sulphurised, blown, polymerised by heat in vacuum or in inert gas or otherwise chemically modified, inedible mixtures or preparations of animal or vegetable fats or oils or of fractions of different fats or oils, n.e.s.	4.5%
Setts, curbstones and flagstones, of natural stone...Setts, curbstones and flagstones, of natural stone (excl. slate)	4.2%
Woven fabrics of flaxWoven fabrics of flax	4.1%
Gas, liquid or electricity supply or production...Gas, liquid or electricity supply or production meters, incl. calibrating meters therefor	2.8%
Petroleum gas and other gaseous hydrocarbonsPetroleum gas and other gaseous hydrocarbons	2.8%
Cane or beet sugar and chemically pure sucrose, in...Cane or beet sugar and chemically pure sucrose, in solid form	2.5%
Electric motors and generators (excl. generating...Electric motors and generators (excl. generating sets)	2.3%
Retreaded or used pneumatic tyres of rubber; solid...Retreaded or used pneumatic tyres of rubber; solid or cushion tyres, tyre treads and tyre flaps, of rubber	1.9%
Pharmaceutical preparations and products of...Pharmaceutical preparations and products of subheadings 3006.10.10 to 3006.60.90	1.6%
Tea, whether or not flavouredTea, whether or not flavoured	1.4%
Parts and accessories for tractors, motor vehicles...Parts and accessories for tractors, motor vehicles for the transport of ten or more persons, motor cars and other motor vehicles principally designed for the transport of persons, motor vehicles for the transport of goods and special purpose motor vehicles of heading 8701 to 8705, n.e.s.	1.3%
Ferrous waste and scrap; remelting scrap ingots of...Ferrous waste and scrap; remelting scrap ingots of iron or steel (excl. slag, scale and other waste from the production of iron or steel; radioactive waste and scrap; fragments of pigs, blocks or other primary forms of pig iron or spiegeleisen)	1.3%
Instruments and appliances used in medical,...Instruments and appliances used in medical, surgical, dental or veterinary sciences, incl. scintigraphic apparatus, other electro-medical apparatus and sight-testing instruments, n.e.s.	1.2%
Wood in the rough, whether or not stripped of bark...Wood in the rough, whether or not stripped of bark or sapwood, or roughly squared (excl. rough-cut wood for walking sticks, umbrellas, tool shafts and the like; wood in the form of railway sleepers; wood cut into boards or beams, etc.)	1.2%
Wheat and meslinWheat and meslin	1.1%
Ferrous products obtained by direct reduction of...Ferrous products obtained by direct reduction of iron ore and other spongy ferrous products, in lumps, pellets or similar forms; iron having a minimum purity by weight of 99,94%, in lumps, pellets or similar forms	1.1%
RiceRice	1.1%
Tanks and other armoured fighting vehicles,...Tanks and other armoured fighting vehicles, motorised, whether or not fitted with weapons, and parts of such vehicles, n.e.s.	1.1%
Diodes, transistors and similar semiconductor...Diodes, transistors and similar semiconductor devices; photosensitive semiconductor devices, incl. photovoltaic cells whether or not assembled in modules or made up into panels (excl. photovotaic generators); light emitting diodes; mounted piezoelectric crystals; parts thereof	1.0%
Chocolate and other food preparations containing...Chocolate and other food preparations containing cocoa	1.0%
Braids of textile materials, in the piece;...Braids of textile materials, in the piece; ornamental trimmings of textile materials, in the piece, not embroidered, other than knitted or crocheted; tassels, pompons and similar articles of textile materials	0.9%
Meat of bovine animals, frozenMeat of bovine animals, frozen	0.8%
Motor vehicles for the transport of goods, incl....Motor vehicles for the transport of goods, incl. chassis with engine and cab	0.7%
Cigars, cheroots, cigarillos and cigarettes of...Cigars, cheroots, cigarillos and cigarettes of tobacco or of tobacco substitutes	0.7%
Motor cars and other motor vehicles principally...Motor cars and other motor vehicles principally designed for the transport of persons, incl. station wagons and racing cars (excl. motor vehicles of heading 8702)	0.7%
Structures and parts of structures "e.g., bridges...Structures and parts of structures "e.g., bridges and bridge-sections, lock-gates, towers, lattice masts, roofs, roofing frameworks, doors and windows and their frames and thresholds for doors, shutters, balustrades, pillars and columns", of iron or steel; plates, rods, angles, shapes, sections, tubes and the like, prepared for use in structures, of iron or steel (excl. prefabricated buildings of heading 9406)	0.6%
Padlocks and locks "key, combination or...Padlocks and locks "key, combination or electrically operated", of base metal; clasps and frames with clasps, incorporating locks, of base metal; keys for any of the foregoing articles, of base metal	0.6%
Milk and cream, concentrated or containing added...Milk and cream, concentrated or containing added sugar or other sweetening matter	0.6%
Coke and semi-coke of coal, of lignite or of peat,...Coke and semi-coke of coal, of lignite or of peat, whether or not agglomerated; retort carbon	0.6%
Ceramic articles, n.e.s.Ceramic articles, n.e.s.	0.6%
Dried leguminous vegetables, shelled, whether or...Dried leguminous vegetables, shelled, whether or not skinned or split	0.5%
Cartons, boxes, cases, bags and other packing...Cartons, boxes, cases, bags and other packing containers, of paper, paperboard, cellulose wadding or webs of cellulose fibres, n.e.s.; box files, letter trays, and similar articles, of paperboard of a kind used in offices, shops or the like	0.5%
Sunflower-seed, safflower or cotton-seed oil and...Sunflower-seed, safflower or cotton-seed oil and fractions thereof, whether or not refined, but not chemically modified	0.4%
Petroleum oils and oils obtained from bituminous...Petroleum oils and oils obtained from bituminous minerals, crude	0.4%
Paper, paperboard, cellulose wadding and webs of...Paper, paperboard, cellulose wadding and webs of cellulose fibres, in strips or rolls of a width <= 36 cm, in rectangular or square sheets of which no side > 36 cm in the unfolded state, or cut to shape other than rectangular or square, and articles of paper pulp, paper, paperboard, cellulose wadding or webs or cellulose fibres, n.e.s.	0.4%
Machinery for sorting, screening, separating,...Machinery for sorting, screening, separating, washing, crushing, grinding, mixing or kneading earth, stone, ores or other mineral substances, in solid, incl. powder or paste, form; machinery for agglomerating, shaping or moulding solid mineral fuels, ceramic paste, unhardened cements, plastering materials or other mineral products in powder or paste form; machines for forming foundry moulds of sand; parts thereof	0.3%
Coal gas, water gas, producer gas, lean gas and...Coal gas, water gas, producer gas, lean gas and similar gases (excl. petroleum gases and other gaseous hydrocarbons)	0.3%
Coconuts, brazil nuts and cashew nuts, fresh or...Coconuts, brazil nuts and cashew nuts, fresh or dried, whether or not shelled or peeled	0.3%
Footwear with outer soles of rubber, plastics,...Footwear with outer soles of rubber, plastics, leather or composition leather and uppers of leather (excl. orthopaedic footwear, skating boots with ice or roller skates attached, and toy footwear)	0.3%
Other oil seeds and oleaginous fruits, whether or...Other oil seeds and oleaginous fruits, whether or not broken (excl. edible nuts, olives, soya beans, groundnuts, copra, linseed, rape or colza seeds and sunflower seeds)	0.3%
Articles for the conveyance or packaging of goods,...Articles for the conveyance or packaging of goods, of plastics; stoppers, lids, caps and other closures, of plastics	0.3%
Cereal flours (excl. wheat or meslin)Cereal flours (excl. wheat or meslin)	0.3%
Fruit juices, incl. grape must, and vegetable...Fruit juices, incl. grape must, and vegetable juices, unfermented, not containing added spirit, whether or not containing added sugar or other sweetening matter	0.3%
Other paper and paperboard, uncoated, in rolls of...Other paper and paperboard, uncoated, in rolls of a width > 36 cm or in square or rectangular sheets with one side > 36 cm and the other side > 15 cm in the unfolded state, not worked other than as specified in note 3 to this chapter, n.e.s.	0.3%
Groundnuts, whether or not shelled or broken (excl...Groundnuts, whether or not shelled or broken (excl. roasted or otherwise cooked)	0.3%
Polymers of ethylene, in primary formsPolymers of ethylene, in primary forms	0.3%
Human blood; animal blood prepared for therapeutic...Human blood; animal blood prepared for therapeutic, prophylactic or diagnostic uses; antisera and other blood fractions and immunological products, whether or not modified or obtained by means of biotechnological processes; vaccines, toxins, cultures of micro-organisms (excl. yeasts) and similar products	0.3%
Containers, incl. containers for the transport of...Containers, incl. containers for the transport of fluids, specially designed and equipped for carriage by one or more modes of transport	0.3%
Table, kitchen or other household articles,...Table, kitchen or other household articles, sanitary ware, and parts thereof, of aluminium, pot scourers and scouring or polishing pads, gloves and the like, of aluminium (excl. cans, boxes and similar containers of heading 7612, articles of the nature of a work implement, spoons, ladles, forks and other articles of heading 8211 to 8215, ornamental articles and fittings)	0.2%
Electric instantaneous or storage water heaters...Electric instantaneous or storage water heaters and immersion heaters; electric space-heating apparatus and soil-heating apparatus; electro-thermic hairdressing apparatus, e.g. hairdryers, hair curlers and curling tong heaters, and hand dryers; electric smoothing irons; other electro-thermic appliances of a kind used for domestic purposes; electric heating resistors (other than those of heading 8545); parts thereof	0.2%
Manufactured tobacco and manufactured tobacco...Manufactured tobacco and manufactured tobacco substitutes and "homogenised" or "reconstituted" tobacco, tobacco extracts and tobacco essences (excl. cigars, incl. cheroots, cigarillos and cigarettes)	0.2%
Fluorine, chlorine, bromine and iodineFluorine, chlorine, bromine and iodine	0.2%
Bananas, incl. plantains, fresh or driedBananas, incl. plantains, fresh or dried	0.2%
New pneumatic tyres, of rubberNew pneumatic tyres, of rubber	0.2%
Impregnated, coated or covered textile fabrics;...Impregnated, coated or covered textile fabrics; painted canvas being theatrical scenery, studio backcloths or the like, n.e.s.	0.2%
Polymers of vinyl chloride or of other halogenated...Polymers of vinyl chloride or of other halogenated olefins, in primary forms	0.2%
Carbon electrodes, carbon brushes, lamp carbons,...Carbon electrodes, carbon brushes, lamp carbons, battery carbons and other articles of graphite or other carbon, with or without metal, of a kind used for electrical purposes	0.2%
Aluminium wire (excl. stranded wire, cables,...Aluminium wire (excl. stranded wire, cables, plaited bands and the like and other articles of heading 7614, electrically insulated wires, and strings for musical instruments)	0.2%
Sanitary towels (pads) and tampons, napkins and...Sanitary towels (pads) and tampons, napkins and napkin liners for babies, and similar articles, of any material	0.2%
Millstones, grindstones, grinding wheels and the...Millstones, grindstones, grinding wheels and the like, without frameworks, for milling, grinding, pulping, sharpening, polishing, trueing or cutting, hand sharpening or polishing stones, and parts thereof, of natural stone, of agglomerated natural or artificial abrasives, or of ceramics, with or without parts of other materials (excl. perfumed pumice stones and grinding wheels etc. specifically for dental drill engines)	0.2%
Waters, incl. mineral waters and aerated waters,...Waters, incl. mineral waters and aerated waters, containing added sugar or other sweetening matter or flavoured, and other non-alcoholic beverages (excl. fruit or vegetable juices and milk)	0.2%
Groundnut oil and its fractions, whether or not...Groundnut oil and its fractions, whether or not refined, but not chemically modified	0.2%
Vegetable saps and extracts; pectic substances,...Vegetable saps and extracts; pectic substances, pectinates and pectates; agar-agar and other mucilages and thickeners derived from vegetable products, whether or not modified,	0.2%
Semi-finished products of iron or non-alloy steelSemi-finished products of iron or non-alloy steel	0.2%
Dates, figs, pineapples, avocados, guavas, mangoes...Dates, figs, pineapples, avocados, guavas, mangoes and mangosteens, fresh or dried	0.2%
Leguminous vegetables, shelled or unshelled, fresh...Leguminous vegetables, shelled or unshelled, fresh or chilled	0.2%
Oxygen-function amino-compoundsOxygen-function amino-compounds	0.2%
Birds' eggs, in shell, fresh, preserved or cookedBirds' eggs, in shell, fresh, preserved or cooked	0.2%
Photographic cameras, photographic flashlight...Photographic cameras, photographic flashlight apparatus and flashbulbs (excl. discharge lamps of heading 8539)	0.2%
Plates, sheets, film, foil and strip, of...Plates, sheets, film, foil and strip, of non-cellular plastics, not reinforced, laminated, supported or similarly combined with other materials, without backing, unworked or merely surface-worked or merely cut into squares or rectangles (excl. self-adhesive products, and floor, wall and ceiling coverings of heading 3918)	0.2%
Roots and tubers of manioc, arrowroot, salep,...Roots and tubers of manioc, arrowroot, salep, jerusalem artichokes, sweet potatoes and similar roots and tubers with high starch or inulin content, fresh, chilled, frozen or dried, whether or not sliced or in the form of pellets; sago pith	0.2%
Fixed vegetable fats and oils, incl. jojoba oil,...Fixed vegetable fats and oils, incl. jojoba oil, and their fractions, whether or not refined, but not chemically modified (excl. soya-bean, groundnut, olive, palm, sunflower-seed, safflower, cotton-seed, coconut, palm kernel, babassu, rape, colza and mustard oil)	0.2%
Vegetables, uncooked or cooked by steaming or...Vegetables, uncooked or cooked by steaming or boiling in water, frozen	0.2%
Base metal mountings, fittings and similar...Base metal mountings, fittings and similar articles suitable for furniture, doors, staircases, windows, blinds, coachwork, saddlery, trunks, chests, caskets or the like; base metal hat-racks, hat-pegs, brackets and similar fixtures; castors with mountings of base metal; automatic door closers of base metal	0.2%
Meat and edible offal of fowls of the species...Meat and edible offal of fowls of the species gallus domesticus, ducks, geese, turkeys and guinea fowls, fresh, chilled or frozen	0.2%
Women's or girls' blouses, shirts and...Women's or girls' blouses, shirts and shirt-blouses (excl. knitted or crocheted and vests)	0.2%
Tomatoes, fresh or chilledTomatoes, fresh or chilled	0.2%
Electrical ignition or starting equipment of a...Electrical ignition or starting equipment of a kind used for spark-ignition or compression-ignition internal combustion engines, e.g. ignition magnetos, magneto-dynamos, ignition coils, sparking plugs, glow plugs and starter motors; generators, e.g. dynamos and alternators, and cut-outs of a kind used in conjunction with such engines; parts thereof	0.2%
Casks, drums, cans, boxes and similar containers,...Casks, drums, cans, boxes and similar containers, incl. rigid or collapsible tubular containers, of aluminium, for any material (other than compressed or liquefied gas), of a capacity of <= 300 l, not fitted with mechanical or thermal equipment, whether or not lined or heat-insulated, n.e.s.	0.1%
Containers of iron or steel, for compressed or...Containers of iron or steel, for compressed or liquefied gas (excl. containers specifically constructed or equipped for one or more types of transport)	0.1%
Live poultry, "fowls of the species gallus...Live poultry, "fowls of the species gallus domesticus, ducks, geese, turkeys and guinea fowls"	0.1%
Polymers of propylene or of other olefins, in...Polymers of propylene or of other olefins, in primary forms	0.1%
Bodies, incl. cabs, for tractors, motor vehicles...Bodies, incl. cabs, for tractors, motor vehicles for the transport of ten or more persons, motor cars and other motor vehicles principally designed for the transport of persons, motor vehicles for the transport of goods and special purpose motor vehicles of heading 8701 to 8705	0.1%
Lubricant preparations, incl. cutting-oil...Lubricant preparations, incl. cutting-oil preparations, bolt or nut release preparations, anti-rust or anti-corrosion preparations and mould-release preparations based on lubricants; textile lubricant preparations and preparations of a kind used for the oil or grease treatment of textile materials, leather, furskins or other materials (excl. preparations containing, as basic constituents, >= 70% petroleum oil or bituminous mineral oil by weight)	0.1%
Soap; organic surface-active products and...Soap; organic surface-active products and preparations for use as soap, in the form of bars, cakes, moulded pieces or shapes, whether or not containing soap; organic surface-active products and preparations for washing the skin, in the form of liquid or cream and put up for retail sale, whether or not containing soap; paper, wadding, felt and nonwovens, impregnated, coated or covered with soap or detergent	0.1%
Refrigerators, freezers and other refrigerating or...Refrigerators, freezers and other refrigerating or freezing equipment, electric or other; heat pumps; parts thereof (excl. air conditioning machines of heading 8415)	0.1%
Glass mirrors, whether or not framed, incl....Glass mirrors, whether or not framed, incl. rear-view mirrors (excl. optical mirrors, optically worked, mirrors > 100 years old)	0.1%
Men's or boys' shirts, knitted or crocheted (excl....Men's or boys' shirts, knitted or crocheted (excl. nightshirts, t-shirts, singlets and other vests)	0.1%
Wire, rods, tubes, plates, electrodes and similar...Wire, rods, tubes, plates, electrodes and similar products, of base metal or of metal carbides, coated or cored with flux material, of a kind used for soldering, brazing, welding or deposition of metal or of metal carbides; wire and rods, of agglomerated base metal powder, used for metal spraying	0.1%
Registers, account books, notebooks, order books,...Registers, account books, notebooks, order books, receipt books, letter pads, memorandum pads, diaries and similar articles, exercise books, blotting pads, binders, folders, file covers, manifold business forms, interleaved carbon sets and other articles of stationery, of paper or paperboard; albums for samples or for collections and book covers, of paper and paperboard	0.1%
Bread, pastry, cakes, biscuits and other bakers'...Bread, pastry, cakes, biscuits and other bakers' wares, whether or not containing cocoa; communion wafers, empty cachets of a kind suitable for pharmaceutical use, sealing wafers, rice paper and similar products	0.1%
Sugar confectionery not containing cocoa, incl....Sugar confectionery not containing cocoa, incl. white chocolate	0.1%
Tractors (other than tractors of heading 8709)Tractors (other than tractors of heading 8709)	0.1%
Wire of iron or non-alloy steel, in coils (excl....Wire of iron or non-alloy steel, in coils (excl. bars and rods)	0.1%
Polymers of styrene, in primary formsPolymers of styrene, in primary forms	0.1%
Flours and meals of oil seeds or oleaginous fruits...Flours and meals of oil seeds or oleaginous fruits (excl. mustard)	0.1%
Air conditioning machines comprising a...Air conditioning machines comprising a motor-driven fan and elements for changing the temperature and humidity, incl. those machines in which the humidity cannot be separately regulated; parts thereof	0.1%
Cotton waste, incl. yarn waste and garnetted stockCotton waste, incl. yarn waste and garnetted stock	0.1%
See More Products	66.1%

Source: Comtrade, Latest Available Data

To go further, check out our service Import Export Flows.

Main Services

0.7 bn USD of services exported in 2019
Other business servicesOther business services	23.03%
Government servicesGovernment services	22.62%
Construction servicesConstruction services	16.96%
TransportationTransportation	16.34%
TravelTravel +	11.12%
Personal travelPersonal travel	10.67%
Business travelBusiness travel	0.45%
Computer and information servicesComputer and information services	8.24%
Cultural and recreational servicesCultural and recreational services	1.07%
Financial servicesFinancial services	0.60%
Insurance servicesInsurance services	0.02%
Royalties and license feesRoyalties and license fees	n/a%

1.2 bn USD of services imported in 2019
TransportationTransportation	77.29%
TravelTravel +	10.84%
Personal travelPersonal travel	10.80%
Business travelBusiness travel	0.04%
Government servicesGovernment services	4.41%
Other business servicesOther business services	3.40%
Computer and information servicesComputer and information services	2.30%
Insurance servicesInsurance services	1.17%
Royalties and license feesRoyalties and license fees	0.40%
Financial servicesFinancial services	0.11%
Construction servicesConstruction services	0.09%
Cultural and recreational servicesCultural and recreational services	n/a%

Source: United Nations Statistics Division, Latest Available Data

Sources of General Economic Information

Ministries: Ministry of Economy
Statistical Office: National Statistics and Information Authority
Central Bank: Da Afghanistan Bank (Central Bank of Afghanistan)
Stock Exchange: There is no stock exchange in Afghanistan
Search Engines: Afghana Search Engine
Google Afghanistan
Economic Portals: Economic news from the Central Bank of Afghanistan
Pajhwok Business News Portal
Afghan Online News Portal - Economic News

Political Outline

Current Political Leaders: Hibatullah Akhundzada is the leader of the Taliban movement
Prime Minister: Mullah Mohammad Hassan Akhund
Next Election Dates: TBD
Main Political Parties: Afghanistan had a multi-party system with numerous political parties before the takeover of the Talibans.
Type of State: Dictatorial regime (since August 2021)
Executive Power: After taking power in August 2021, the Taliban established a regime that severely limited democratic freedom in the country. Most countries (including the G7) do not recognize the Taliban government.
Legislative Power: Before the takeover of the Talibans in 2021, the legislative power was bicameral. The parliament, or the National Assembly, was composed of an upper and lower house. The lower house, Wolesi Jirga, was the more powerful of the two houses, and its members (no more than 250, the 2004 electoral law set the size of the house at 249 members) were elected by the people for a five-year term. The upper house, Meshrano Jirga, used to be composed by 102 seats and its members served 5-year terms.

The National Assembly was effectively dissolved on 15 August 2021 after the fall of Kabul.

Indicator of Political Freedom

Definition

Definition:

The Indicator of Political Freedom provides an annual evaluation of the state of freedom in a country as experienced by individuals. The survey measures freedom according to two broad categories: political rights and civil liberties. The ratings process is based on a checklist of 10 political rights questions (on Electoral Process, Political Pluralism and Participation, Functioning of Government) and 15 civil liberties questions (on Freedom of Expression, Belief, Associational and Organizational Rights, Rule of Law, Personal Autonomy and Individual Rights). Scores are awarded to each of these questions on a scale of 0 to 4, where a score of 0 represents the smallest degree and 4 the greatest degree of rights or liberties present. The total score awarded to the political rights and civil liberties checklist determines the political rights and civil liberties rating. Each rating of 1 through 7, with 1 representing the highest and 7 the lowest level of freedom, corresponds to a range of total scores.

Ranking:: Not Free

Political freedom in the world (interactive map)
Source: Freedom in the World Report, Freedom House

COVID-19 Country Response

COVID-19 epidemic evolution: To find out about the latest status of the COVID-19 pandemic evolution and the most up-to-date statistics on the COVID-19 disease in Afghanistan, please visit the U.S.A Embassy in Afghanistan website. To discover the regional segmentation you can also check the national covid-19 tracker.
For the international outlook you can consult the latest situation reports published by the World Health Organisation as well as the global daily statistics on the coronavirus pandemic evolution including data on confirmed cases and deaths by country.
Sanitary measures: To find out about the latest public health situation in Afghanistan and the current sanitary measures in vigour, please consult the Emergency Response and Health Systems Preparedness Project including the up-to-date information on the containment measures put in place and public health recommendations.You can also find more information on the Afghanistan COVID19 Emergency Response.
Travel restrictions: The COVID-19 situation, including the spread of new variants, evolves rapidly and differs from country to country. All travelers need to pay close attention to the conditions at their destination before traveling. Regularly updated information for all countries with regards to Covid-19 related travel restrictions in place including entry regulations, flight bans, test requirements and quarantine is available on TravelDoc Infopage.
It is also highly recommended to consult COVID-19 Travel Regulations Map provided and updated on the daily basis by IATA.
The US government website of Centers of Disease Control and Prevention provides COVID-19 Travel Recommendations by Destination.
The UK Foreign travel advice also provides travelling abroad advice for all countries, including the latest information on coronavirus, safety and security, entry requirements and travel warnings.
Import & export restrictions: For the information on all the measures applicable to movement of goods during the period of sanitary emergency due to the COVID-19 outbreak (including eventual restrictions on imports and exports, if applicable), please consult the website of the Afghan Customs.
For a general overview of trade restrictions due to COVID-19 pandemic, please consult the section dedicated to Afghanistan on the International Trade Centre's COVID-19 Temporary Trade Measures webpage.
Economic recovery plan: To know about the economic measures taken by the Afghan government to address the impact of the COVID-19 pandemic on the national economy, the World Bank Country Update provides a good insight.
For the general overview of the key economic policy responses to the COVID-19 outbreak (fiscal, monetary and macroeconomic) taken by the Afghan government to limit the socio-economic impact of the COVID-19 pandemic, please consult the section dedicated to Afghanistan in the IMF’s Policy Tracker platform.
Support plan for businesses: The country's government oﬃcial sources do not provide yet information with regards to speciﬁc schemes in support of business or exporting companies following the coronavirus epidemic outbreak. For the updated information please visit the website of the Afghan Ministry of Economy.
For a general overview of international SME support policy responses to the COVID-19 outbreak refer to the World Bank's Map of SME-Support Measures in Response to COVID-19.
Support plan for exporters: The country's government oﬃcial sources do not provide yet information with regards to speciﬁc schemes in support of business or exporting companies following the coronavirus epidemic outbreak. For the updated information please visit the website of the Afghan Ministry of Economy.

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