Afghanistan’s Untapped Economic Potential Hindered By Limited Trade and Investment, Says UN Expert
Afghanistan’s economy possesses immense untapped potential, particularly in its natural resources and commercial opportunities, but much of this potential remains unrealized due to limited direct trade, according to Dr. Nagesh Kumar, former Director of the United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP).
Speaking at the release of the UN World Economic Situation and Prospects (WESP) 2025 report at the United Nations office in New Delhi on Thursday, Dr. Kumar told Khaama Press that political differences must be set aside for regional cooperation to flourish, ultimately benefiting the Afghan people. He also stressed the need for greater investment in Afghanistan’s critical mineral resources for economic growth.
The WESP 2025 report, published by the United Nations Department of Economic and Social Affairs (UN DESA), in collaboration with UNCTAD and the five UN regional commissions, offers a broad economic outlook for the global economy, with particular focus on developing regions.
Dr. Kumar pointed out that South Asia’s economic outlook remains strong, with regional GDP expected to grow by 5.7% in 2025, slightly down from 5.9% in 2024. The growth is driven by strong performances in India, as well as economic recoveries in Bhutan, Nepal, Pakistan, and Sri Lanka. The report also highlights a global rise in women-owned enterprises, an encouraging trend for economic development.
Dr. Nagesh also stressed the need for Multilateral Development Banks (MDBs) to enhance their lending capacities to support developing nations in the face of growing economic challenges.
He cautioned that electoral rhetoric often does not reflect the true state of a country’s economy, urging policymakers to focus on realistic economic strategies rather than political promises. He stated further that IMF policies will determine economies like Sri Lanka, Maldives, Bangladesh.
The report further provided projections for major economies: India’s economy is expected to grow by 6.6% in 2025, following an estimated 6.9% growth in 2024, fueled by strong private consumption and investment. In contrast, China’s economy is projected to expand by 4.8% in 2025, slightly lower than the 4.9% growth forecasted for 2024.
Li Junhua, United Nations Under-Secretary-General for Economic and Social Affairs, concluded that governments must adopt forward-looking policies and comprehensive regulatory frameworks to ensure sustainable resource extraction, equitable benefit-sharing, and investments in critical sectors like mineral resources to maximize developmental gains.
Despite Afghanistan’s vast natural resources and economic potential, the country faces a dire humanitarian crisis, with ongoing political instability and limited international support hindering development.
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