In August 2021, in a matter of weeks, the Taliban seized control over Afghanistan, causing the democratically-elected government to collapse and a mass exodus of citizens and expatriates.
The Taliban, after the absence of 20 years, had taken control of Afghanistan.
From the look of it, Afghanistan’s formal economy is likely to crash. This would mean a humanitarian crisis, a refugee crisis, and political instability which is far worse than we are already seeing.
The key reason being that Afghanistan’s economy is heavily dependent on foreign trade. And there is no alternative that will make up for the sheer volume of funding that foreign countries have been providing for the last twenty years.
Afghanistan is staring right at a liquidity crisis. Around 80% of the Afghan government budget was funded by the United States and other foreign institutions.
40% of the country’s GDP which is 42.9% to be precise, came from foreign aid. Importantly, 4% of Afghanistan’s GDP comes from remittances, that’s money from overseas workers that get sent back home.
That’s one of the highest rates in the world and those remittances have not been able to reach Afghan people in the country who needs it.
EFFECTS OF TRADE UNDER THE CONTROL OF TALIBAN
This is no secret that trading is one of the most profitable businesses on the globe. We are trading internationally over the globe in the foreign market with various kinds of commodities.
Unfortunately, the trades have been affected in recent days in Afghanistan because of the Taliban. Afghanistan is under the risk factor by the control of the Taliban terrorist.
With the information available, it is stated that the incident will impact the whole world in a higher manner.
The business of import and export is widely affected by the interference of the Taliban terrorists.
After coming into power, the Taliban has started to implement their own rules & regulations, and terms & conditions causing instability in the global trades resulting in low level of import-export business. Therefore, the trade in this country is now declining.
However, many foreign countries depend on their importing products like spices, and dry fruits. Before the Taliban came into power, Afghanistan used to trade over millions of dollars, which is now lost.
Now the trade is derived by the new terms & conditions forced and implemented by Taliban Terrorists. This is so that the Taliban can apply additional charges for the import-export of the stocks.
With the increase in the interference of the Taliban, in the import-export business, many foreign institutions have canceled their tie-ups with Afghanistan.
ITEMS TRADING IN AFGHANISTAN
Export data of Afghanistan shows that they were trading in several goods over the globe, in the international market with different foreign institutions.
The top ten exports of Afghanistan according to its export data include Rugs and carpets with total coverage of around 45% of export. Dry fruits cover 31% of exports, and the rest 12% of coverage goes to drugs and medicinal plants for medical purposes.
The import data of Afghanistan stated that the country stays dependent on the global trade for commodities such as apparatus, natural gas & petroleum, machinery, and other equipment, articles & metals, and other food products.
The current trade balance of Afghanistan according to the available data is around 6.36 billion USD deficit.
Both the trading of imports and exports after the collapse of Afghanistan are affected globally.
AFGHANISTAN TRADING PARTNERS
As per the list of the trade statistics 2021, the main global trade partners of Afghanistan include India, Iraq, Russia, Turkey, Iran, and Pakistan. At present, Turkey is taking over Afghanistan Airports for security measures.
Therefore it is difficult to even guess which of the countries will abandon or protect Afghanistan when the time comes.
CHALLENGES PEOPLE OF AFGHANISTAN ARE FACING WITH UNSATISFACTORY GLOBAL TRADE
The Taliban has closed all the possible portals that would bring opportunities for trading. Because of which demand for products used for daily life purposes is increasing in Afghanistan.
It is quite difficult and near to impossible for the people of Afghanistan to manufacture all the goods and products on their own in their country.
The lives of people in this country are in danger and require immediate action and help from world power.
CONCLUSION
In the above article, we have summarised the events taking place in the country of Afghanistan and how it is affecting the global trade of import and export.
For any assistance regarding the Import-export business, you can connect with us @Info@eximtradedata.com as we provide up-to-date and highly researched import-export data based on the current market flow.
