Afghanistan Economy Remains Steady At Dawn Of Fourth Anniversary Of Taliban Rule

By Vijian Paramasivam

PHNOM PENH, Aug 15 (Bernama) -- After four years in power, the Taliban-led government says Afghanistan's economy is prepared to withstand American tariffs and ready to welcome millions of Afghan refugees. 

Today marks the fourth anniversary of Taliban rule in Afghanistan, as the nation faces new economic challenges, including a 15 per cent export levy imposed by the United States in August. 

And, millions of Afghans have returned to their homeland after fleeing the treacherous civil war that devastated the resource-rich nation. 

In an exclusive interview with Bernama from Kabul, the Acting Minister of the Ministry of Commerce and Industry, Nooruddin Azizi, acknowledged the burdensome challenges but expressed confidence that the current government has the tools to navigate them.

"In the short term, the tariffs won't have much impact because our exports to the US amount to only RM46 million (US$11 million). We primarily export carpets, handicrafts and agricultural products to the US. 

"But in the long run, we may face difficulties because we want to expand our exports to the US. The US is a big market for us," said Nooruddin. 

The Taliban captured Kabul on Aug 15, 2022, after the previous regime collapsed following the US-NATO troops' withdrawal, ending a 20-year bloody civil war. 

The Taliban had earlier ruled Afghanistan from 1996 to 2001.

Nooruddin, instrumental in shaping the Taliban's economic agenda, is proving Western naysayers wrong, many of whom predicted that Afghanistan's economy would collapse miserably after they took over.

Since the installation of the Taliban government, trade volume rose from RM32 billion (US$7.5 billion) in 2022 to RM55 billion (US$13 billion) in 2025, while the Gross Domestic Product (GDP) increased from RM59 billion (US$14.1 billion) in 2022 to RM73 billion (US$17.3 billion) this year, he said. 

The World Bank's April 2025 report said that Afghanistan's GDP is estimated to have grown 2.5 per cent in 2024, marking the second consecutive year of economic expansion. 

The ADB Bank project forecasts a moderate 2.6 per cent growth for this year.

The recovery is primarily driven by agriculture, mining, construction, and commerce. 

Perched between Central Asia and South Asia, the landlocked Afghanistan exports include apples, apricots, cotton, grapes, dried nuts, saffron, pomegranates and raisins.

Challenges abound. Unemployment, lack of basic infrastructure like roads, rural poverty, airports and railways, restrictions on women, girls' education and weak industrial growth remain a bane to the nation. 

The International Organisation for Migration, in August, said four million Afghan refugees have returned home from neighbouring Iran and Pakistan since 2023, with 1.5 million expected to return this year. 

"We have handled returning refugees before; we are fully ready and committed. Our government is working to facilitate their return," said Nooruddin.

He said the US sanctions against Afghanistan have hurt the economy, especially the freezing of RM39 billion (US$9.3 billion) in Afghan assets and sanctions against banks that have crippled trade and investments.

In addition, the failure of Washington to recognise the Islamic Emirate of Afghanistan, the nation's official name, as the legitimate government impacts its diplomatic status.  

Russia was the first country to recognise the new regime in July. 

Over the last four years, the government has implemented roadmaps to jump-start the economy, eliminate corruption, and build key infrastructure to boost the economy.

The development of the 1,600-kilometre Turkmenistan-Afghanistan-Pakistan-India Gas Pipeline (TAPI), also known as the Trans-Afghanistan Pipeline, is a major natural gas pipeline infrastructure to revive the economy.

"We have completed 15 kilometres of the pipeline inside Afghanistan in Herat province. We have also launched the five-year national development strategy, industrial parks and SMEs (small and medium enterprises). 

"So we are confident that 2025 and onwards will be a better year for Afghanistan and its people," said the minister.

--  BERNAMA