IT would not be an overstatement to say that the flawed policies of the Taliban regime have worsened the socio-economic crisis in Afghanistan.
Ironically, Afghanistan is plunging deeper in the quagmire with every passing day under the rule of an unelected self-style government which lacks international recognition.
Tensions with neighbouring Pakistan have turned volatile amid long standing issue of cross-border terrorism which continues to endanger the regional peace. The close, ideological and tactical partnership between the Afghan Taliban and the banned Tehrik-e-Taliban Pakistan (TTP) has created severe, long-term damage to both the security and economy of Afghanistan.
By harbouring and supporting the TTP—which is responsible for a surge in terror attacks in Pakistan—the Taliban regime has created a “triple failure” of legitimacy, security and welfare. The Taliban’s backing of the TTP has led to increased friction with Pakistan, resulting in frequent, unannounced closures of key border crossings like Torkham and Chaman. These closures cost the Afghan economy an estimated $1 million per day in lost trade, according to reports in 2025-2026. The ongoing security crisis and the Taliban’s refusal to curb extremist groups create a volatile environment, making foreign investment nearly impossible, which keeps the country in a “low growth, high vulnerability” trap.
The regime has failed to build a sustainable economy, relying on external aid for over 40% of public revenue while the TTP nexus diverts focus away from economic development. UNDP reports that only 7% of women were employed outside the household in 2024, compared with 84% of men and identifies Afghanistan as the most repressive country for women’s rights. The UN Monitoring Team notes that bans on girls’ education and women’s employment have long-term economic effects because half the population is not educated or able to work freely. The Security Council has warned that peace and prosperity are unattainable until bans on women and girls are reversed.
Taliban has removed half the country from the economy, then blames the world for Afghanistan’s poverty. Restrictions on female nurses, midwives and aid workers also weaken humanitarian delivery to Afghan women and children. The atmosphere of lawlessness encourages illicit trade in minerals, timber and narcotics, which undermines formal economic growth. By supporting the TTP, the Taliban has provided space for other extremist networks, including ISKP, which continues to mount attacks in high-security areas of Kabul. The Taliban’s protection of the TTP has led to severe tension with Pakistan, including retaliatory strikes from Pakistan in 2026. This escalates the risk of a full-scale border war, which would cripple the already fragile state.
The Taliban’s return to power in 2021 saw the release of over 8,000 TTP fighters from Afghan jails, directly increasing the number of armed, violent extremists operating within Afghan territory. By enabling the TTP, viewed by the UN as the largest terrorist group in Afghanistan, the regime isolates itself further from the international community, hindering any chances of diplomatic recognition or formal economic assistance. No improvement is expected in Afghanistan unless the current Taliban regime amends its flawed policies.
—The writer is contributing columnist, based in Islamabad.
