International reporting
Afghan economy under pressure from international sanctions
Audio 02:32
This Afghan merchant is suffering from the economic crisis.
© Cléa Broadhurst / RFI
By: Sonia Ghezali Follow |
Clea Broadhurst Follow
3 mins
In Afghanistan, the economy is devastated.
Since the Taliban took power a year ago, the country has been plunged into a serious financial and humanitarian crisis.
The Afghan state budget was 75% dependent on international aid, but this was suspended when religious fundamentalists came to power.
Unemployment skyrocketed.
70% of Afghan households are unable to meet their basic needs. Banks lack liquidity and have been forced for a year to impose weekly withdrawal limits.
The Afghan Central Bank is deprived of its international reserves, its $7 billion in assets having been frozen in the United States after the Taliban took power.
Thousands of businesses have collapsed.
Those who survived are struggling,
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From our special correspondents in Herat,
In the shopping district of Herat, nothing is missing from the store shelves, but prices have doubled in a year.
“
This rice used to cost around
1,800 Afghanis, now it costs 3,000 Afghanis.
And this oil that comes from Russia used to cost 450, now it costs 900 Afghanis
,” exclaims Aziz Ahmad Amiri, a trader.
A fortune for a large part of the population which has sunk into extreme poverty since the Taliban took power.
Aziz Ahmad Amiri has had to lay off around 15 employees in recent months.
He also lost 50% of his clientele.
“
Most rich people have left Afghanistan.
In Afghanistan, it is said that "the village is well when there are trees
"
.
Without rich people or people who have a good situation, we cannot do good business
,” he explains.
He struggles to keep his business afloat.
“The people who stayed here are poor.
So we give them credit.
And we have clients who owe us money, but who have left Afghanistan.
»
Business leaders are also bearing the full brunt of international sanctions.
Jalil Ahmad Karimi is a saffron producer.
Red gold is the pride of the province of Herat, but it has lost 80% of its turnover.
“Before, we sent our products by plane directly to India, China, Europe or the United States.
Now it's complicated because we have to send everything by road to Iran and then ship the parcels to other countries.
»
He has no choice, as international carriers have closed in Afghanistan.
Jalil Ahmad Karimi has not received any money in one year.
And he has been waiting for several months for the equivalent of 334,000 euros from a customer based in India to whom he sent 200 kilograms of saffron.
“
As the Afghan state is not recognized, bank transfers from abroad are prohibited
,” he adds.
Najibullah Khairandish Fushanji imports wholesale flour from Kazakhstan, oil from Malaysia, milk and preserves from China, rice from Pakistan and India.
But in addition to international sanctions, inflation due to the war in Ukraine and the economic crisis in Iran and Pakistan have a direct impact on its activity.
Nevertheless, he highlights some positive points: “
We paid 200,000
Afghanis
at customs, or
2,200 euros for each truck loaded with goods.
It was bribe.
Nothing was legal.
Now, each product is taxed according to a tariff schedule.
It's all legal now
."
Like many business leaders, he only hopes for one thing, diplomatic recognition of the Islamic Emirate of Afghanistan, which would mean the lifting of international sanctions.
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Afghanistan
Economy
Economic crisis