Published on: 08/16/2022 – 00:09
In Afghanistan, the economy is devastated. Since the Taliban took power a year ago, the country has plunged into a severe financial and humanitarian crisis. The Afghan national budget was 75% dependent on international aid, but this was suspended when religious fundamentalists came to power. Unemployment skyrocketed. 70% of Afghan households cannot meet their basic needs, banks lack liquidity and have been forced to set weekly withdrawal limits for a year. The Afghan central bank is being stripped of its international reserves and its $7 billion in assets have been frozen in the United States after the Taliban took power. Thousands of companies collapsed. The survivors are fighting, victims of the international sanctions that weigh on their country, led by a Taliban government whose legitimacy has not been recognized by any country to this day.
From our special correspondents in Herat,
Nothing is missing from store shelves in Herat’s business district, but prices have doubled in a year.
“This rice used to cost around 1,800 afghanis, now it costs 3,000 afghanis. And this oil that comes from Russia used to cost 450 Afghans, now it costs 900 Afghans,” says Aziz Ahmad Amiri, a trader.
A fortune for much of the population, who have sunk into extreme poverty since the Taliban took power. Aziz Ahmad Amiri has had to lay off around 15 employees in recent months. He also lost 50% of his clientele.
“Most of the rich have left Afghanistan. In Afghanistan they say: “The village is fine when there are trees”. Without rich people or people who have it good, we can’t do good business,” he explains.
He struggles to keep his business going.
“The people who stayed here are poor. So we give them credit. And we have customers who owe us money but have left Afghanistan. »
Business leaders are also bearing the full brunt of international sanctions.
Jalil Ahmad Karimi is a saffron producer. Red gold is the pride of Herat province but has lost 80% of its turnover.
“We used to send our products directly to India, China, Europe or the United States by air. Now it is complicated because we have to send everything to Iran by land and then ship the packages to other countries. »
He has no choice as international airlines have closed in Afghanistan. Jalil Ahmad Karimi has not received any money for a year. And for several months he has been waiting for the equivalent of 334,000 euros from a customer in India, to whom he sent 200 kilograms of saffron.
“Since the Afghan state is not recognized, bank transfers from abroad are prohibited,” he adds.
Najibullah Khairandish Fushanji imports wholesale flour from Kazakhstan, oil from Malaysia, milk and preserves from China, rice from Pakistan and India. But in addition to international sanctions, inflation due to the war in Ukraine and the economic crisis in Iran and Pakistan directly affect their activity.
Nevertheless, he highlights some positive points: “We paid 200,000 afghan at customs, or 2,200 euros for each truck loaded with goods. It was bribery. Nothing was legal. Now every product is taxed according to a tariff scheme. Everything is legal now.”
Like many business leaders, he only hopes for one thing: diplomatic recognition of the Islamic Emirate of Afghanistan, which would mean the lifting of international sanctions.