Challenges for Afghan private sector in the Taliban era
Rahmatullah Baghban
Press TV, Kabul
The Taliban takeover of Afghanistan in August 2021 brought about rapid and momentous changes to the country’s economy which was already reeling under the impact of the COVID-19 pandemic, persistent insecurity and weakened private sector confidence. Following the power shift, the war-torn country’s economic activities were greatly affected, with the private sector being hit hard. Many private firms have experienced a drastic decline in consumer demand for their products and services.
A survey by the World Bank shows that many firms in Afghanistan are adjusting to the new business environment but most are still facing daunting challenges. The majority of private firms have responded to those challenges by laying off employees, shifting to cash and informal payment channels, shrinking investments, and lowering staff salaries.
The survey has also found that employment remained around 50 percent lower than before August 2021. Most firms are operating below their full capacity and are only considered partially open.
This as US sanctions have disrupted international payments and limited access to bank accounts and formal banking.
In the meantime, the new survey confirms the resilience of Afghanistan’s private sector, which can play a key role in the economic recovery of the country and improving the livelihood of the Afghan people.
Private sector firms in Afghanistan are impacted by the loss of international assistance and banking relationships. Businesspeople here are calling for positive cooperation between the Taliban and the global community.
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