WB report shows growth in Afghan trade despite closure of Pak routes, Kabul seeks import cuts

New Delhi, Nov 24 A World Bank document has shown that despite the closure of trade routes with Pakistan, Afghanistan’s exports increased by 13 per cent in October compared to September, where India was the largest importer, receiving 50 per cent of Kabul’s total exports last month.

Afghanistan’s Tolo News on Monday, November 24, quoted the bank’s Afghanistan Economic Monitor, also mentioning that imports increased by two per cent in October compared to September, exceeding USD 1.1 billion.

Meanwhile, Afghanistan’s Ministry of Economy has emphasised that increasing exports and reducing imports are key priorities of the country’s economic policy, and alternative trade routes are being explored to meet these goals, added Tolo News.

According to the World Bank, total exports reached USD 1.1 billion during the first seven months of FY2025, up 10 per cent from USD 0.96 billion during the same period in FY2024. India, said the document, emerged as Afghanistan’s largest export destination, accounting for 50 per cent of monthly exports in October and 38.3 per cent of cumulative exports.

Uzbekistan also expanded its share to six per cent during the first seven months of the fiscal year. However, Pakistan, which the monitor pointed out as “historically the top market, saw its share fall to 35.8 per cent, with monthly export halving in October. Continued border closures could push this share even lower,” it added.

This monthly Afghanistan Economic Monitor is part of Afghanistan Futures, the World Bank’s programme of research, monitoring, and analytical reports on the Afghan economy and society. Afghanistan Futures, according to the organisation, seeks to inform the international policy dialogue as the international community assesses how it can support the people of Afghanistan.

The Afghanistan Economic Monitor joins the regular surveys on the private sector, household welfare, and gender, as well as the sectoral reports that inform the Afghanistan Development Update, a biannual flagship report. It pointed out that despite the closure at the Pakistan border, food shipments drove export growth as trade rerouted toward India and Uzbekistan.

Incidentally, Afghanistan does not have a land route to India; Kabul traditionally exported goods and products to Turkiye, Pakistan, Iran, and the United Arab Emirates. After the closure of the volatile Pak border following fierce skirmishes, the Taliban leadership had asked the business community to look for alternate trade routes.

Soon after, Ariana Afghan Airlines last week announced a reduction in cargo tariffs to and from India. Among exports, food reached USD 238.4 million in October, up 8.6 per cent Year-on-Year, “reflecting strong regional demand,” added the World Bank Economic Monitor. Cumulatively, food exports grew by 22.4 per cent during the first seven months of FY2025, reinforcing their dominant role in Afghanistan’s export portfolio.

It also noted Kabul is facing major challenges this year, including the return of refugees from Iran and Pakistan, severe droughts, repeated earthquakes, multi-day internet blackouts, and the temporary closure of trade routes with Pakistan.

The document further noted that inflation had reportedly reached an annual rate of 2.1 per cent in September and had even turned negative during some months. It was also indicated that the government's domestic revenue saw a 16 per cent increase in the first seven months of the year, surpassing USD 2.3 billion. Taxes and customs duties were said to remain the primary sources of this revenue.

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