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Business Daily

Afghanistan: Can its private sector step up?

Business Daily

BBC

News, Business

4.4796 Ratings

🗓️ 29 October 2025

⏱️ 18 minutes

🧾️ Download transcript

Summary

Since the Taliban took over from a US-led government in Afghanistan in 2021, the economic challenges facing the country have been huge. The amount of aid going in to the country has dropped, the banking system is difficult to navigate, and international investors are staying away.

That is before considering the economic impact of natural disasters such as earthquakes, floods and droughts, which have frequently ravaged rural areas. Government investment seems unlikely, so experts and business owners hope that the private sector can help to rebuild Afghanistan after years of turmoil.

To get in touch with the programme, you can email us at [email protected]

Producer/presenter: Hannah Bewley

(Photo: A man selling used household appliances in a street in Kabul, Afghanistan, in 2020. Credit: Getty Images)

Transcript

Click on a timestamp to play from that location

0:00.0

BBC Sounds, Music, Radio, podcasts.

0:10.6

Hello and welcome to Business Daily from the BBC World Service. I'm Hannah Buley.

0:16.3

Today we head to Afghanistan, a country where almost 15 million people face severe hunger,

0:21.6

and according to the UN is experiencing the sharpest surge in malnutrition ever recorded.

0:26.6

The economic situation has been worsened by devastating earthquakes and a recent 48-hour internet blackout.

0:33.6

The country has relied heavily on aid, but when the US-backed government fell in

0:38.4

2021 to be replaced by the Taliban, the economy contracted drastically, and the amount of

0:44.1

international aid coming in fell sharply. So could the private sector provide a route to

0:49.8

recovery for Afghanistan's economy? There is no future for Afghanistan without its private sector.

0:55.9

And it has also been shown in the past that you cannot build your country with aid money.

1:02.8

Boosting Afghanistan's private sector.

1:05.1

That's all coming up on today's program.

1:10.5

The only reason I downsized was because there were no sales. When there are no sales,

1:17.0

production stops accordingly. This is the reality for a children's clothes manufacturer in the

1:22.7

Afghan capital Kabul. They were describing their situation to the Afghanistan Analyst Network, which is a non-profit

1:28.8

research organization, and their words are spoken by a BBC producer. When people struggle to buy

1:35.0

food, how they can think about clothes. Most people make clothes at home because there is a tailor

1:42.0

in every family, especially women.

1:45.0

Because most of them know how to sew.

1:48.0

They come to the shop and buy one, two or three types of clothing.

1:52.0

Copy them at home and then sell the copies cheaply.

1:56.0

They can sell the clothes cheaply because they have no rent to pay, no taxes, no employees'

...

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