Afghanistan has a developing economy that is considered low income and among the world's least developed. With a population of around 43 million people, the nation generates $19.66 billion in nominal gross domestic product (GDP) and $101 billion by purchasing power parity (PPP) GDP, as of 2026. The official currency of Afghanistan is the afghani (AFN). Its central bank – known as Da Afghanistan Bank – oversees monetary policy. A burgeoning banking system operates within the country, including the Afghanistan International Bank, Azizi Bank, New Kabul Bank, and Pashtany Bank. The nation exports around $2 billion, with agricultural, mineral and textile products accounting for 94% of total exports. It's external debt has been around $1.4 billion since the early 2020s.
The Afghan economy continues to improve with strengthening trade routes, infrastructure development and the expansion of the strategically important sectors of agriculture, transport, energy and mining. Economic development and political stability is supported by a large and remittance-rich Afghan diaspora. The country holds mineral deposits worth over $2.5 trillion, with vast amounts of copper, rare earths and minerals. Around 48% of its population lives below the poverty line. The population of Afghanistan increased by more than 50% between 2001 and 2014, while its GDP grew eightfold. cf. After the U.S. withdrawal from Afghanistan in 2021, the U.S. government confiscated $9.5 billion worth of Afghanistan's assets to stop the Taliban from accessing it.
Economic history
When Afghanistan was ruled by Emir Abdur Rahman Khan (1880–1901) and his son Habibullah Khan (1901–1919), a great deal of commerce was controlled by the government. These monarchs were eager to develop the stature of government and the country's military capability, and so attempted to raise money by the imposition of state monopolies on the sale of commodities and high taxes. This slowed the long-term development of Afghanistan during that period. Western technologies and manufacturing methods were introduced at the command of the Afghan ruler, but in general only according to the logistical requirements of the growing army. An emphasis was placed on the manufacture of weapons and other military material. This process was in the hands of a small number of foreign experts invited to Kabul by the Afghans. Otherwise, it was not possible for non-Afghans, particularly westerners, to set up large-scale enterprises in Afghanistan during that period.Asian Affairs Journal, Making Money in Afghanistan: The First Western Entrepreneurs 1880-1919, Vol 3, 2012.
In the post-independence period, Da Afghanistan Bank strongly financed the cultivation of cotton; at one point, the Spinzar Cotton Company in Kunduz Province was one of the largest providers of cotton in the world, most of which were exported to the Soviet Union. Fruits were mainly exported to British-controlled India (now Pakistan and India).
The first prominent plan to develop Afghanistan's economy in modern times was the Helmand Valley Authority project of 1952, modeled on the Tennessee Valley Authority in the United States, which was expected to be of primary economic importance., Tudor Engineering Company Glenn Foster, an American contractor working in Afghanistan in the 1950s, stated this about the Afghan people:
The same can be said today. Afghanistan began facing severe economic hardships after the 1979 Soviet invasion, which caused the permanent closure of all its border checkpoints with neighboring Iran and Pakistan. The civil war of the 1990s destroyed much of the country's limited infrastructure, and disrupted normal patterns of economic activity. Eventually, Afghanistan went from a traditional economy to a centrally planned economy up until 2002 when it was replaced by a free market economy following the 2001 war in Afghanistan. Gross domestic product has fallen substantially since the 1980s due to disruption of trade and transport as well as loss of labor and capital. Continuing internal strife severely hampered domestic efforts to rebuild the nation or provide ways for the international community to help.
According to the International Monetary Fund, the Afghan economy grew 20% in the fiscal year ending in March 2004, after expanding 30% in the previous 12 months. The growth was mainly attributed to United Nations assistance. Billions of dollars in international aid and remittances from expats had entered Afghanistan from 2002 to 2021. A GDP of $4 billion in fiscal year 2003 was recalculated by the IMF to $6.1 billion, after adding proceeds from opium production. Mean graduate pay was $0.56 per man-hour in 2010. The country is still striving to be self-sufficient in wheat, rice, poultry and dairy production.
The recent reestablishment of the Islamic Emirate led to temporary suspension of international development aid to Afghanistan. The World Bank and International Monetary Fund also halted payments during that period. In this regard, Hibatullah Akhundzada stated that "the economy of a country is built when its people work together and do not rely on foreign aid" The Biden administration froze about $9 billion in assets belonging to the Da Afghanistan Bank, which was intended to block the Islamic Emirate from accessing the money. The recent droughts, earthquakes and floods in the country have created further adverse economic situation for many residents. The Ministry of Finance has collected over $2 billion in 2022.
The GDP of Afghanistan is estimated to have dropped by 20% following the Islamic Emirate's return to power. Following this, after months of free-fall, the Afghan economy began stabilizing, as a result of restrictions on smuggled imports, limits on banking transactions, and UN aid. In 2023, the Afghan economy began seeing signs of revival. This has also been followed by stable exchange rates, low inflation, stable revenue collection, and the rise of trade in exports. In the third quarter of 2023, the Afghani rose to be the best performing currency in the world, climbing over 9% against the US dollar.
Economic development, recovery and downturn
Afghanistan embarked on a modest economic development program in the 1930s. The government founded banks; introduced paper money; established a university; expanded primary, secondary, and technical schools; and sent students abroad for education. In 1952 it created the Helmand Valley Authority to manage the economic development of the Helmand and Arghandab valleys through irrigation and land development, a scheme which remains one of the country's most important capital resources.
In 1956, the government promulgated the first in a long series of ambitious development plans. By the late 1970s, these had achieved only mixed results due to flaws in the planning process as well as inadequate funding and a shortage of the skilled managers and technicians needed for implementation. , Socio-Economic Overview of Afghanistan, Strategic Outlook Afghanistan became a member of ECO, OIC, SAARC, and WTO. It has an observer status in the SCO.
Some of the ongoing national mega projects include the Qosh Tepa Canal, the TAPI gas pipeline, the CASA-1000 electricity line, the Afghanistan Ring Road modernization, and the New Kabul housing project. Other smaller housing projects include the Qatar Township in Kabul, Aino Mena in Kandahar and the Ghazi Amanullah Khan Town east of Jalalabad. Hundreds of similar projects are also found in Herat in the west, Mazar-e-Sharif in the north, Khost in the east, and in other cities.
After the Islamic Emirate returned to power, the country suffered from a major liquidity crisis and lack of banknotes. Because outside donors have severely cut funding to support Afghanistan's health, education, and other essential sectors, many Afghans lost their incomes. Under the assessment system of the World Food Programme (WFP), almost 20 million people suffered either level-3 “crisis” or level-4 “emergency” levels of food insecurity. The impact of the crisis on women and girls was especially severe. Officials under the Islamic Emirate continue to provide communication services to areas that lacked them. They collected 61 billion afghanis in tariffs in 2022, which increased to 76 billion in 2023. And they continue to attract foreign investors.
Agriculture, animal husbandry and forestry
Agriculture remains Afghanistan's most important source of employment: 60-80 percent of Afghanistan's population works in this sector, although it accounts for less than a third of GDP due to insufficient irrigation, drought, lack of market access, and other structural impediments. Most Afghan farmers are primarily subsistence farmers.
Afghanistan produced in 2018:
3.6 million tons of wheat; 984 thousand tons of grape (18th largest world producer); 615 thousand tons of potato; 591 thousand tons of vegetable; 381 thousand tons of watermelon; 352 thousand tons of rice; 329 thousand tons of melon; 217 thousand tons of apple; 150 thousand tons of onion; 106 thousand tons of maize; 56 thousand tons of barley; 47 thousand tons of peach;
In addition to smaller productions of other agricultural products.
Afghanistan produces around 1.5 million tons of fresh fruits annually, which could be increased significantly. It produces some of the finest fruits, especially pomegranates, grapes, melons, apples, cherries and mulberries. Other fruits grown in the country include apricots, figs, kiwi, oranges, peaches, pears, persimmons, plums, and strawberries. Organic farming has always been widely practiced in Afghanistan than modern farming. Many of its citizens have recently turned to using greenhouses. There were about 5,000 greenhouses reported in 2017.
Afghanistan's dried fruit exports rose to $667 million in 2025. The country's northern and western provinces are known for pistachio cultivation. In recent years, farmers in the southern provinces began growing American pistachio trees. The provinces of Paktika, Paktia, Khost, Nangarhar, Nuristan and Kunduz are famous for pine nuts. The dried fruits basically grow in all provinces of Afghanistan, and they are not only sold locally but also exported to other countries.
The northern and central provinces are more famous for almond and walnut production. The Bamyan Province is the leader of superior potatoes, which produced 370,000 tons in 2020. Nangarhar, Laghman and Kunar are the only provinces in the country where major farming of grapefruits, lemons, limes, and oranges can be found. Nangarhar also has farms of dates, peanuts, olives, and sugarcane. Cultivation of these products have gradually spread to more provinces. Other agricultural products such as avocados, bananas, guavas, mangos and pineapples have recently been planted in the provinces of Balkh, Helmand, Laghman, Nangarhar, and Paktia.
Afghanistan is listed as the 54th largest vegetables producing country. Most of its vegetables are for domestic consumption and include beans, broccoli, cabbages, carrots, cauliflowers, chickpeas, coriander, corns, cucumbers, eggplants, leeks, lettuces, okras, onions, peppers, potatoes, pumpkins, radishes, rhubarb, spinach, tomatoes, turnips, and zucchinis. Wheat and cereal production is Afghanistan's traditional agricultural mainstay. The nation is nearing self-sufficiency in grain production. It requires an additional 2.33 million tons of wheat to become self-sufficient, which is predicted to be accomplished in the near future.
Arable land in Afghanistan was reported to be over 7.5 million hectares. Wheat production had stood at 4.83 million metric tons in 2024, nurseries held 119,000 hectares of land, and grape production is at 615,000 tons. Cotton production has jumped to 500,000 tons. Around of farm land in Afghanistan is used to cultivate saffron, mostly in the west, north and south of the country. Sugarcane is currently grown on of land, and asafoetida on nearly of land.