Economy Overview
Afghanistan is an extremely poor, landlocked country, highly dependent on farming and livestock raising (sheep and goats). Economic considerations have played second fiddle to political and military upheavals during two decades of war, including the nearly 10-year Soviet military occupation (which ended 15 February 1989). During that conflict one-third of the population fled the country, with Pakistan and Iran sheltering a combined peak of more than 6 million refugees. In early 1999, 1.2 million Afghan refugees remained in Pakistan and about 1.4 million in Iran. Gross domestic product has fallen substantially over the past 20 years because of the loss of labor and capital and the disruption of trade and transport. The majority of the population continues to suffer from insufficient food, clothing, housing, and medical care. Inflation remains a serious problem throughout the country. International aid can deal with only a fraction of the humanitarian problem, let alone promote economic development. The economic situation did not improve in 1998-99, as internal civil strife continued, hampering both domestic economic policies and international aid efforts. Numerical data are likely to be either unavailable or unreliable. Afghanistan was by far the largest producer of opium poppies in 1999, and narcotics trafficking is a major source of revenue.
Agriculture Products
opium poppies, wheat, fruits, nuts, karakul pelts; wool, mutton
Industries
small-scale production of textiles, soap, furniture, shoes, fertilizer, and cement; handwoven carpets; natural gas, oil, coal, copper
Industrial Production Growth Rate
Labor Force
8 million (1997 est.)
Electricity production
430 million kWh (1998)
Electricity production by source
Fossil fuel: 41.86%
Hydro: 58.14%
Nuclear: 0%
Other: 0% (1998)
Electricity Consumption
510 million kWh (1998)
Electricity Exports
0 kWh (1998)
Electricity Imports
110 million kWh (1998)
Currency
1 afghani (AF) = 100 puls
Unemployment Rate
8% (1995 est.)
Population Below Poverty Line
NA%
Household Income or Consumption by Percentage Share
Lowest 10%: NA%
Highest 10%: NA%
Budget
Revenues: $NA
Expenditures: $NA, including capital expenditures of $NA
Commercial Bank Prime Lending Rate
Market Value of Publicly Traded Shares
Reserves of Foreign Exchange and Gold
Debt External
$5.5 billion (1996 est.)
Stock of Direct Foreign Investment at Home
Stock of Direct Foreign Investment Abroad
Exchange Rates
afghanis (Af) per US$1 - 4,700 (January 2000), 4,750 (February 1999), 17,000 (December 1996), 7,000 (January 1995), 1,900 (January 1994), 1,019 (March 1993), 850 (1991); note - these rates reflect the free market exchange rates rather than the official exchange rate, which was fixed at 50.600 afghanis to the dollar until 1996, when it rose to 2,262.65 per dollar, and finally became fixed again at 3,000.00 per dollar in April 1996
