UNDP: Private Sector Key to Afghanistan’s Economic Stability
The United Nations Development Programme (UNDP) has stated that the sharp decline in trade and production in Afghanistan since 2021 has impacted the livelihoods of millions, and currently, the private sector is the main pathway to achieving economic stability and recovery in the country.
On Tuesday, February 16, UNDP released a report highlighting that despite some signs of modest economic growth and relative improvements in monetary stability, Afghan citizens continue to face widespread economic hardships. According to the report, the severe recession in recent years has placed heavy pressure on households and reduced the financial capacity of many.
The UNDP emphasized that micro, small, and medium-sized enterprises play a fundamental role in production, creating job opportunities, and supporting the economic well-being of families, especially women. The organization believes that strengthening this sector can pave the way for sustainable growth and reduce the population’s reliance on humanitarian aid.
The report notes that efforts to revive private sector activities, expand trade and investment, accelerate economic growth, and generate employment continue. The main focus remains on identifying obstacles faced by businesses, improving market access, and enhancing economic resilience in the country.
These remarks come as the United Nations had previously reported that 75 percent of Afghanistan’s population struggles to meet basic daily needs, and 88 percent of female-headed households lack access to minimum livelihood requirements. Experts believe that ongoing restrictions and the absence of a stable economic framework under Taliban rule pose serious challenges to economic recovery and investment.
