Tehran- IRAF- The report states that during the same period, development expenditures amounted to 15.7 billion Afghanis, while more than 106 billion Afghanis were allocated to non‑military sectors and public services.
The World Bank also points to trade and currency developments in Afghanistan during this period, noting the strengthening of the Afghani in December and a decline in exports to Pakistan to 2.9 percent in December. The report further notes that India has become Afghanistan’s largest export destination, absorbing more than 61 percent of the country’s exports, while Uzbekistan’s share increased to 7.7 percent in the current fiscal year. It also highlights a 19 percent increase in the trade deficit, driven by higher imports and rising transportation costs.
Budget Deficit and Economic Pressures
The report adds that Afghanistan recorded a budget deficit of about two billion Afghanis in the first nine months of 2025, caused by revenues (200.9 billion Afghanis) falling short of total expenditures (202.9 billion Afghanis).
The World Bank warned that the country is under pressure from the large‑scale return of migrants and the continued closure of borders with Pakistan. Despite low inflation and a relative increase in government revenues, weak investment has hindered sustainable economic growth.
It is projected that per capita income will decline by around four percent in fiscal year 2025, and widespread poverty is expected to persist.
The report concludes that despite economic pressures and trade restrictions, the government’s fiscal position and the relative stability of the foreign exchange market in Afghanistan have so far been maintained.
