Despite various development projects launched across the country in 2024, poverty and unemployment remained persistent and pressing challenges. The situation was further exacerbated by continued international economic sanctions on Afghanistan and a decline in humanitarian aid, deepening the country’s economic woes.
Additionally, migration and natural disasters such as floods compounded the economic struggles, leaving many Afghans in a precarious situation. These overlapping crises underscored the urgent need for sustainable solutions to address the root causes of poverty and unemployment.
According to private sector officials, banking restrictions on transferring money and the freezing of Afghanistan’s assets were major obstacles for trade and industry in 2024, contributing to rising poverty and unemployment.
Jan Aqa Naveed, spokesperson for the Chamber of Commerce and Investment, told TOLOnews: "Our suggestion is to separate political matters from economic issues and allow the Afghan people, traders, and the private sector to carry out their business and economic activities freely."
Funding Shortages for Humanitarian Aid
Various United Nations agencies, including the Office for the Coordination of Humanitarian Affairs (OCHA), repeatedly expressed concerns about a lack of funding for aid to Afghanistan. In its latest report, OCHA stated that $2.42 billion will be needed to assist 16.8 million people in Afghanistan in 2025.
Isabelle Moussard Carlsen, Head of OCHA in Afghanistan, said in an exclusive interview with TOLOnews: "This humanitarian needs and response plan I have talked about, as of October, it's only be in 31, 32 percent funded, which means that there is a big gap of funding to cover all the needs.”
World Bank Reports
The World Bank addressed Afghanistan's economic conditions in two consecutive reports released in December 2024. While the reports indicated signs of moderate economic growth, they also highlighted key challenges, including financial constraints, trade imbalances, and limited investment capacity.
The World Bank warned of a severe food security crisis in Afghanistan, reporting that approximately 11.6 million Afghans—25 percent of the population—are facing critical food insecurity.
Abdul Rahman Habib, spokesperson for the Ministry of Economy, said: "Combating food insecurity requires a comprehensive approach and global cooperation. Lifting economic sanctions and supporting developmental programs that strengthen household economies can play a significant role in addressing food insecurity."
Experts emphasize the importance of specialization in Afghanistan's various economic sectors to reduce poverty and unemployment. They also stress the need for the Islamic Emirate to strengthen relations and cooperation with international organizations and other countries to address these challenges.
Impact of Climate Change
Climate-related events such as droughts and devastating floods are seen as major contributors to Afghanistan’s food crisis and rising poverty.
In its latest report, the World Food Programme (WFP) noted that one-third of Afghanistan’s population urgently needs humanitarian assistance but added that it can currently only support six million people.
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