Kabul, Jan 27 (.) The Taliban administration spent an estimated 96.9 billion Afghanis (USD 1.492 billion) on security during the first nine months of the 2025 fiscal year, according to a new report by the World Bank, amid the country’s bid to tackle terror groups threatening to plunge Afghanistan back into political disarray, and ensure the continuation of law and order.
By contrast, development spending remained limited at 15.7 billion afghanis, while just over 106 billion afghanis went to civilian sectors and public services, the report said, according to Afghanistan International.
Afghanistan ran a modest budget deficit of around 2 billion afghanis over the period, as total revenues of 200.9 billion afghanis narrowly failed to cover expenditures of 202.9 billion afghanis.
In its December economic update, the World Bank said the Afghan economy remains under increasing strain due to the mass return of migrants from Iran and Pakistan, and its ongoing border closures with Pakistan, which has led to much economic turmoil on both sides.
While inflation has stayed low and government revenues have shown a relative increase, weak private investment continues to weigh on long-term growth and productivity.
The outlook for living standards remains bleak. Per capita income is expected to fall by about 4% in the 2025 fiscal year, with poverty remaining a widespread problem.
The report also noted that although the afghani strengthened in December, the country’s trade deficit widened by 19%, driven by higher imports and rising transport costs.
Trade patterns are also shifting. Afghanistan’s exports to Pakistan continued to decline, with Pakistan accounting for just 2.9% of total exports in December.
India emerged as the country’s largest export destination, absorbing more than 61% of Afghan exports that month, while Uzbekistan’s share rose to 7.7% over the current fiscal year.
Despite mounting economic pressures and trade disruptions, the World Bank said Afghanistan has so far managed to maintain its overall fiscal position and a degree of stability in the foreign exchange market.
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