The World Bank has released updated figures on Afghanistan’s 2025 state budget. According to the report, the Taliban allocated 49% of all government spending to the security sector — roughly 75.6 billion afghanis ($1.14 billion). Total expenditures increased by 18.5%, reaching 155.7 billion afghanis ($2.35 billion), Afintl.af reports.
Afghanistan’s economy remains highly vulnerable. The report notes that earthquakes, drought, the mass return of migrants, and disruptions in telecommunications continue to negatively affect the country. Despite these challenges, the Taliban administration’s domestic revenues rose by 16% compared to last year.
Exports Grow Despite Pakistan Border Closure
Even though Pakistan has shut down key border crossings, Afghanistan’s exports in October 2025 increased by 13% year-on-year, reaching $267 million. The World Bank notes that trade flows were “successfully redirected” to India and Uzbekistan. The harvest season and low domestic inflation also helped maintain exporters’ competitiveness.
Food exports reached $238.4 million — 8.6% higher than last year — reflecting strong regional demand for Afghan agricultural products.
Trade with Pakistan Remains Frozen
Trade and transit between Afghanistan and Pakistan have been blocked for more than a month due to border clashes. Pakistan cites security concerns as the reason for the shutdown, while Kabul insists the halt has not harmed the economy.
Deputy Prime Minister for Economic Affairs Abdul Ghani Baradar urged businesses to look for alternative trade routes. The Ministry of Finance stated that cooperation with neighboring and regional partners continues as usual.
The World Bank warns that with continued restrictions and a high share of military-related spending, Afghanistan’s financial stability remains uncertain.
CentralasianLIGHT.org
26 November 2025