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Remembering King Amanullah Khan’s Economic Reforms

King Amanullah Khan launched a number of economic reforms after gaining Afghanistan's independence from Britain.

During the era of King Amanullah Khan, economic initiatives included imposing tariffs on imports, raising taxes, introducing the budget, designating the Afghani as the new currency, and creating a national bank.

However, Afghanistan has not yet become financially independent and continues to rely on foreign aid.

"He imposed taxes, increasing tariffs, without measuring its consequences, like how much should the tax be, and when it should be collected, that is why it caused social uprisings,” said Asif Nang, an economist.

"During this time, the level of revenue increased, and at one point, 180 million Kabul rupees in GDP was collected, of which about a third was spent on preventative measures," said Nematullah Bizhan, an international relations analyst.

According to economists, the Amani era's economic reforms were more beneficial than social reforms; the budget was first introduced in 1922, and the Afghani was introduced as a new monetary unit in 1923.

The National Bank was established in 1928 during this period, and the banking industry in the nation saw remarkable growth.

"More attention was devoted to infrastructure during the era of King Amanullah Khan, which is regarded as a time of economic stability. For instance, a railway was built for the first time during this time. For the first time, flights started which was connecting Kabul-Tashkent and Kandahar. Additionally, banks and schools were constructed,” said Abdul Nasir Reshtia, an economist.

In the more than a century after the nation gained its independence, certain improvements to the economy have been made, but none of them have been fundamental, and the economy continues to face difficulties, amalysts said.

According to the Ministry of Economy, major obstacles to the nation's economic independence include a lack of security, unstable infrastructure, and a lack of a theoretical framework for the economy.

"Afghanistan has lacked an economic infrastructure so far, Afghanistan wasn't able to have stable security so far, and in a society where there is no security, a stable economy will not be formed,” said Abdul Latif Nazari, Deputy of the Ministry of Economy.

After the start of the elected governments in 2002, the economic system of the country was chosen as the market economy system, and despite the billions of dollars pouring into the country during this earlier period, now Afghanistan is a country dependent on foreign aid with a weak economy and very little economic growth.

Remembering King Amanullah Khan’s Economic Reforms

However, Afghanistan has not yet become financially independent and continues to rely on foreign aid.

تصویر بندانگشتی

King Amanullah Khan launched a number of economic reforms after gaining Afghanistan's independence from Britain.

During the era of King Amanullah Khan, economic initiatives included imposing tariffs on imports, raising taxes, introducing the budget, designating the Afghani as the new currency, and creating a national bank.

However, Afghanistan has not yet become financially independent and continues to rely on foreign aid.

"He imposed taxes, increasing tariffs, without measuring its consequences, like how much should the tax be, and when it should be collected, that is why it caused social uprisings,” said Asif Nang, an economist.

"During this time, the level of revenue increased, and at one point, 180 million Kabul rupees in GDP was collected, of which about a third was spent on preventative measures," said Nematullah Bizhan, an international relations analyst.

According to economists, the Amani era's economic reforms were more beneficial than social reforms; the budget was first introduced in 1922, and the Afghani was introduced as a new monetary unit in 1923.

The National Bank was established in 1928 during this period, and the banking industry in the nation saw remarkable growth.

"More attention was devoted to infrastructure during the era of King Amanullah Khan, which is regarded as a time of economic stability. For instance, a railway was built for the first time during this time. For the first time, flights started which was connecting Kabul-Tashkent and Kandahar. Additionally, banks and schools were constructed,” said Abdul Nasir Reshtia, an economist.

In the more than a century after the nation gained its independence, certain improvements to the economy have been made, but none of them have been fundamental, and the economy continues to face difficulties, amalysts said.

According to the Ministry of Economy, major obstacles to the nation's economic independence include a lack of security, unstable infrastructure, and a lack of a theoretical framework for the economy.

"Afghanistan has lacked an economic infrastructure so far, Afghanistan wasn't able to have stable security so far, and in a society where there is no security, a stable economy will not be formed,” said Abdul Latif Nazari, Deputy of the Ministry of Economy.

After the start of the elected governments in 2002, the economic system of the country was chosen as the market economy system, and despite the billions of dollars pouring into the country during this earlier period, now Afghanistan is a country dependent on foreign aid with a weak economy and very little economic growth.

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