KABUL: Afghanistan trade deficit jumped to 95 percent in 2014, with the total value of trade reaching $8.697 billion USD, of which $7.697 billion USD were imports and only $571 million USD were exports.
As a country that has strived to bolster industry and improve exports over the years, a trade deficit of $7.126 billion USD is not a good sign. Afghanistan continues to import far more than it exports, sending more currency abroad than the country is bringing in.
According to officials at the Central Statistics Office (CSO), last year was one of the worst economically for Afghanistan on record.
“Afghanistan is a country dependent on imports, and this shows a lack of government management,” CSO Economic Director Azizullah Faqeeri said on Wednesday. “The government must lay out economic plans and increase exports by using the available resources. Increase in exports will not only increase employment opportunities, but it will also result in a decrease in imports. This will also prevent millions of dollars from leaving the country every year.”
Afghan Chamber of Commerce and Industries (ACCI) has warned that political infighting among National Unity Government leaders has distracted from much needed economic reform and initiative.
“A 95 percent deficit in the trade balance of a country is concerning, but government leaders are still busy with distribution of power and have not paid any attention in this regard,” ACCI Financial Deputy Tawfiq Dawari said. “We warn that if the government does not work toward increasing domestic products, the country will go toward an economic crisis. If that happens, these leaders will not be able to do anything.”
According to Central Statistics Office data, in the year 1393, most of Afghanistan’s exported goods were dry and fresh fruits, carpets and gems. Food, oil and fuel products were among its major imports.
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