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Taliban Rule and Economic Developments in Afghanistan

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Change of Administration in Afghanistan and Subsequent Developments

Afganistan'daki Yönetim Değişikliği ve Sonraki Gelişmeler

Afghanistan experienced a significant change of government on August 15, 2021, when the Taliban took complete control of the country. Since then, the Taliban government has continued to celebrate August 15 as a public holiday. However, due to differences in the Islamic calendar, this year the ceremonies were held on August 14. The new government’s efforts to ensure public order throughout the country stand out as the greatest source of pride for the Afghan people. However, serious steps still need to be taken to solve the economic and social problems inherited from the past.

The new administration is trying to revive the country’s economy by launching various development projects or supporting previously launched projects in order to provide economic recovery. However, difficulties in gaining international recognition continue. The Afghan administration has developed its strongest diplomatic relations with its neighbor China, with whom it shares the shortest border. On September 13, 2023, the new Chinese Ambassador to Kabul, Cao Shing, presented his credentials to the Prime Minister of the Afghan Interim Government, Mullah Mohammad Hassan Akhund. This made him the first ambassador to assume office with the official acceptance of the internationally unrecognized interim government.

The interim government of Afghanistan has appointed ambassador Bilal Karimi to Beijing. China aims to revitalize East-West trade with transportation and infrastructure projects along the historic Silk Road route within the framework of the Belt and Road Initiative. In this context, it has shown interest in various communications, transportation, energy and infrastructure projects to exploit Afghanistan’s rich mineral resources and contribute to the reconstruction of the country. This was the first large-scale resource extraction agreement with a foreign company by the interim government of Afghanistan, which was established after the change of government in August 2021.

Afganistan'da Taliban Yönetimi ve Ekonomik Gelişmeler

In addition, recently the country’s largest copper mine, Mey Aynek, located in Logar province, began to be operated by the Chinese Metallurgical Group Corporation (MCC). In addition, lithium resources in Afghanistan, which the US Department of Defense has estimated at around $1 trillion, continue to attract the attention of many countries, especially China. The Afghan government has also held investment talks in many areas with companies from various European countries, Central Asian countries, the US, Russia, Iran and Turkey.

The Afghan administration, which is trying to revive projects such as roads, dams, water channels, electricity production, railways in the northern region, natural gas and oil production that were destroyed or could not be developed during the period of internal unrest, is also preparing for new projects. One of these projects is the Kushtepe Canal Project, which has been on the agenda since the time of former Afghan leader Davud Khan. Construction of the project began in 2022 and a portion of the water of the Amuderya River will be carried to the interior of the country through a 285-kilometer canal. The project aims to provide water to 550 to 600 thousand hectares of agricultural land.

Taliban Rule and Economic Developments in Afghanistan

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