Economy Overview
Afghanistan is an extremely poor, landlocked country, highly dependent on foreign aid, farming and livestock raising (sheep and goats), and trade with neighboring countries. Economic considerations have played second fiddle to political and military upheavals during more than 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 4 to 6 million refugees. 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; severe drought added to the nation's difficulties in 1998-2002. The majority of the population continues to suffer from insufficient food, clothing, housing, and medical care, and a dearth of jobs, problems exacerbated by political uncertainties and the general level of lawlessness. International efforts to rebuild Afghanistan were addressed at the Tokyo Donors Conference for Afghan Reconstruction in January 2002, when $4.5 billion was pledged, $1.7 billion for 2002. Of that approximately $900 million was directed to humanitarian aid - food, clothing, and shelter - and another $90 million for the Afghan Transitional Authority. Further World Bank and other aid came in 2003. Priority areas for reconstruction include upgrading education, health, and sanitation facilities; providing income generating opportunities; enhancing administrative and security arrangements, especially in regional areas; developing the agricultural sector; rebuilding transportation, energy, and telecommunication infrastructure; and reabsorbing 2 million returning refugees. The replacement of the opium trade - which may account for one-third of GDP - and the search for oil and gas resources in the northern region are two major long-term issues.
Agriculture Products
opium, wheat, fruits, nuts, wool, mutton, sheepskins, lambskins
Industries
small-scale production of textiles, soap, furniture, shoes, fertilizer, cement; handwoven carpets; natural gas, coal, copper
Industrial Production Growth Rate
NA%
Labor Force
10 million (2000 est.)
Electricity production
334.8 million kWh (2001)
Electricity production by source
Fossil fuel: 36.3%
Hydro: 63.7%
Other: 0% (2001)
Nuclear: 0%
Electricity Consumption
511.4 million kWh (2001)
Electricity Exports
0 kWh (2001)
Electricity Imports
200 million kWh (2001)
Population Below Poverty Line
NA%
Household Income or Consumption by Percentage Share
Lowest 10%: NA%
Highest 10%: NA%
Budget
Revenues: $200 million
Expenditures: $550 million, including capital expenditures of $NA (2003 plan est.)
Commercial Bank Prime Lending Rate
Market Value of Publicly Traded Shares
Reserves of Foreign Exchange and Gold
Debt External
NA (1996 est.)
Stock of Direct Foreign Investment at Home
Stock of Direct Foreign Investment Abroad
Exchange Rates
afghanis per US dollar - 3,000 (October-December 2002), 3,000 (2001), 3,000 (2000), 3,000 (1999), 3,000 (1998), note: before 2002 the market rate varied widely from the official rate; in 2002 the afghani was revalued and the currency stabilized
