Statement of the Deputy PM for Economic Affairs Office in Response to the Recent World Bank Report on Afghanistan's Economic Situation

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On April 18, 2024, the World Bank published a report assessing Afghanistan's economic status. The report highlights a challenging economic climate over the past two years, citing a decline in GDP, reduced inflation rates, a constrained supply of Afghani to the market, and a trade deficit. However, the report also acknowledges positive developments, such as Afghani's strengthened value against foreign currencies and a 90 percent decrease in opium cultivation. Furthermore, it notes a 9 percent increase in revenue collection compared to the 2023 target. The Deputy Prime Minister for Economic Affairs Office of the Islamic Emirate of Afghanistan acknowledges the report's positive and factual aspects. However, it refutes aspects that deviate from the reality on the ground. Contrary to the report's claims, GDP levels have seen an increase since the re-establishment of the Islamic Emirate. The decrease in prices of both food and non-food items is attributed to enhanced domestic production. Effective monetary policies and market assessments have ensured the appropriate supply of Afghani based on market demand, leading to significant strides in reducing the trade deficit. For instance, in 1400 SH, exports amounted to 850 million dollars, while by 1402 SH, exports had reached 2 billion dollars. Concurrently, imports have decreased, largely due to increased domestic production of goods. Moreover, the Islamic Emirate has generated employment opportunities for hundreds of thousands of individuals across sectors such as mining, infrastructure, industry, and agriculture. A notable example is the inauguration of 9 infrastructure projects, worth 16.5 billion Afghanis, in the first month of 1403 SH. Regarding the report's mention of farmers losing income due to the ban on opium cultivation, the Islamic Emirate acknowledges this policy and its efforts to provide alternative crops to farmers. The Islamic Emirate of Afghanistan urges the international community to fulfill its responsibility in this regard. The Islamic Emirate of Afghanistan emphasizes that positive engagement from the international community, including the removal of sanctions and the release of Afghanistan's frozen assets, along with cooperation in various sectors and financing development projects, will result in the creation of new job opportunities and positively impact the country's economic situation.

The Islamic Emirate of Afghanistan

Deputy PM for Economic Affairs Office