World
2026.08.31 19:10 GMT+8

Five years of Taliban rule (Ep. 2): Afghanistan sees signs of economic recovery amid challenges

Updated 2026.08.31 19:10 GMT+8
CGTN

After more than four decades of war and conflict, Afghanistan's economy is showing early signs of recovery. The Taliban-led government is seeking to attract investment, develop the mining sector, expand trade and build critical infrastructure. But frozen foreign assets in the US, limited access to financial resources and weak domestic markets continue to constrain sustainable economic growth. Despite these difficult conditions, local entrepreneurs are finding ways to keep their businesses running, including women, who continue to operate under strict restrictions.

Samira Mohamadi, head of the Women's Restaurants Association in Afghanistan, has turned recovery into reality. She currently runs three restaurants, providing employment for dozens of Afghan women, and recently opened an 8,000-square-meter family venue on the outskirts of Kabul. Despite sweeping restrictions imposed on women, her story demonstrates that resilience can still create opportunities and livelihoods.

"Fortunately, I am very happy that I have been able to serve as the head of the association. After I opened my first restaurant, more than 270 restaurants across Afghanistan are now being managed and owned by women," Mohamadi said.

However, she noted that high rents, lack of financial support, and limited resources remain major obstacles. Without government subsidies to cover rent and with newly opened venues yet to become profitable, one of her businesses faces severe financial pressure. "I invested around two million afghanis from my personal savings, but unfortunately, due to the difficulties that followed, in short, everything vanished," she added.

For small businesses and ordinary citizens who depend on daily wages, immediate economic assistance remains an urgent need. At the same time, officials say the administration is focusing on long-term investment and major infrastructure projects, including the 285-kilometer Qosh Tepa irrigation canal and the 1,800-kilometer TAPI gas pipeline, as part of efforts to stimulate broader economic growth.

Abdul Latif Nazari, Deputy Minister of Economy, outlined the strategy: "Over recent years, several major steps were taken: first, the nourishment of domestic products; second, strengthening the private sector; and third, efforts to develop agriculture, trade, and industries. These three factors can pave the way for long-term development in Afghanistan."

Economic experts highlight improved security and freedom of movement as major opportunities following decades of conflict. However, Sulaiman Bin Shah, CEO of business consulting firm Catalysts Afghanistan, pointed out that sanctions, banking restrictions, high unemployment, and weak infrastructure remain the central hurdles. "You can count tens of great things happening in the country, but at the same time, we must remain cognizant of the hardships the people continue to face, whether due to domestic policies or international negligence," he noted.

Despite small business growth, many residents still face severe poverty and unemployment.

"Unemployment has increased drastically," said Ataullah Lazemzoy, a Kabul resident. "You see women begging on the streets and many children deprived of education, forced to polish shoes or wash cars." Another resident, Naweedullah Sahil, added: "Compared to the past, many people have rebuilt their businesses, though some remain discouraged. Still, we must not lose hope."

Five years after the Taliban returned to power, Afghanistan has made progress in rebuilding its economy. However, the critical challenge ahead lies in converting this initial momentum into long-term, sustainable stability for businesses, workers, and the national economy.

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