World Bank: 56% of Afghanistan’s Imports Pass Through Iran

The World Bank has reported that 56% of Afghanistan’s imports in May were conducted directly or through transit corridors in Iran, highlighting the country’s growing trade dependence on these routes. According to the institution, another 41% of imports were routed through Central Asian countries.

Based on the report, Iran was Afghanistan’s largest trading partner in the current fiscal year, supplying 31.6% of the country’s total imports, followed by the United Arab Emirates, China, and Uzbekistan. The World Bank warned that relying heavily on a single trade route makes Afghanistan more vulnerable to geopolitical tensions, potential border closures, and disruptions in transportation networks.

The report also describes foreign trade as one of the weakest sectors in Afghanistan’s economy. Exports in May reached $79.2 million, marking a 17% decrease from the previous month and a 14% drop compared to the same period last year. Meanwhile, the value of imports in the same month was approximately $970 million, down 11% from April and 16% year-on-year.

The World Bank identified the continued closure of border crossings with Pakistan and instability in West Asia as key factors behind the decline in trade. These issues have caused interruptions in transit routes, increased transportation costs, and weakened regional commerce.

The report also highlights a significant drop in investment within the country. Imports of capital goods fell by 41% compared to last year, transportation equipment by 49%, machinery by 16%, textiles by 43%, and mineral products by 28%. The World Bank views these figures as indicative of ongoing economic uncertainty and diminished enthusiasm for new investments.

Although the institution noted that Afghanistan’s economy has been on a path to recovery nearly five years after the Taliban resumed power, with economic growth accompanied by increased domestic demand and relative price stability, it stressed that rapid population growth, the return of millions of refugees, trade disruptions, and weak investment have prevented this recovery from improving the living standards of citizens.

Economic experts believe that without diversifying trade routes, boosting domestic production, and creating a predictable environment for investors, the country’s economic fragility will persist. They emphasize that the Taliban administration bears direct responsibility for economic management and ensuring sustainable stability.