Afghanistan feels impact of Iran’s economic isolation

1 / 2
Afghans began moving to Iran in large numbers after the Soviet invasion in 1979 and they continued to migrate for work through decades of conflict. (AFP)
2 / 2
The latest drop in remittances from Iran is already having an impact on the economies of the Afghan provinces of Herat, Badghis and Ghor. (AFP)
Updated 25 April 2019
Follow

Afghanistan feels impact of Iran’s economic isolation

GENEVA/KABUL: Abdul Saboor escaped poverty and instability in Afghanistan three years ago with his wife and three children and found work in neighboring Iran. Now he has returned home, despite the fact that life there has not improved.
His job at a grocery store in the central Iranian city of Isfahan brought in about 280 dollars a month, enough to support his family. But the Iranian rial took a dive last year and his employer cut his wages to less than 100 dollars a month.
“The economic situation in Iran is really bad,” said the 28-year-old. “Wages have gone down since last year and a lot of families had to return to Afghanistan.”
Afghans began moving to Iran in large numbers after the Soviet invasion in 1979 and they continued to migrate for work through decades of conflict, sending money to relatives back home that helped bolster Afghanistan’s struggling economy.
In 2017, there were approximately 2.5 million to 3 million Afghans in Iran, according to Iranian government estimates cited by the United Nations.
That number could be cut in half by the end of this year. More than 770,000 Afghans left Iran last year as the currency faltered and an extra 570,000 are expected to go this year, the International Organization for Migration (IOM) said in January.
Iran’s economy has been squeezed since President Donald Trump reimposed sanctions on Iran last year after pulling out of a 2015 nuclear deal between Tehran and world powers.
US officials have said the sanctions are intended to pressure Iran to negotiate over what they say are its aggressive missile program and regional policy; critics say they hurt ordinary people and entrench hard-line rulers.
The rial lost approximately 70 percent of its value last year before recovering slightly, disrupting Iran’s foreign trade and helping boost annual inflation fourfold to nearly 40 percent in November. Currency fluctuations and the unstable economy have led to sporadic street protests since late 2017.
An IOM report in January noted that a big jump in the number of Afghans returning from Iran last year was “largely driven by recent political and economic issues in Iran including massive currency devaluation.”
Afghans typically took harsh, labor-intensive jobs in Iran and their departure will mean higher production costs, said Saeed Leylaz, a Tehran-based economist and political analyst.
Under pressure
Over the past year, many Afghans in Iran have sought advice about returning from the office of Grand Ayatollah Mohaghegh Kabuli — a senior Afghan religious leader based in the holy city of Qom, according to an administrator in the office who asked not to be identified because of the sensitivity of the subject.
“With the crash of the value of the rial, staying in Iran has become very difficult for Afghan migrants,” he said. “They are under pressure.”
Naim, 18, followed the path of two of his older brothers and came to Iran from Afghanistan when he was only ten years old but quickly managed to find work in construction in Tehran.
The work was backbreaking and his family faced hardship: one brother lost four fingers in a construction accident in Tehran.
But he persevered, because he could make more money than at home, and eventually got a job as a doorman at a multi-story apartment complex in Tehran.
Last year, as the economic situation in Iran began to deteriorate, one of his older brothers decided he could no longer support his wife and six children and moved back to Herat in western Afghanistan.
“My brother’s wife and children were hungry and this currency has no value so they went back,” Naim said.
His brother started working in agriculture and has been able to open a small shop in Herat with his earnings. He is now pushing Naim to come home from Iran, a trip that he and approximately 150 friends and extended family are planning to take in two months.
“We work and we work and for what?” Naim said. “We have to go back.”
He could face an uncertain future once he returns.
“The economic opportunities in Afghanistan are no longer there. It’s not like there’s a lack of opportunities in Iran and new opportunities in Afghanistan,” said Sarah Craggs, IOM’s senior program coordinator for Afghanistan, who is based in Kabul. “There are no opportunities in either country really.”
Afghans have long sought better lives in other countries and a lack of jobs in Iran could also boost numbers trying to head further west to Europe.
The latest drop in remittances from Iran is already having an impact on the economies of the Afghan provinces of Herat, Badghis and Ghor, an IOM report said in January.
Abdul Saboor now earns about 130 dollars a month working at a restaurant in Herat.
“Life was much better in Iran but since the financial crisis, it was difficult to survive so we had to come back despite all the hardship here,” he said. “I was the lucky one and found a job while thousands of others are jobless.”


Filipinos celebrate Christmas on a budget amid soaring costs

Children spend the afternoon at Quezon Memorial Circle in Quezon City, Philippines on Dec. 23, 2025. (PNA)
Updated 55 min 52 sec ago
Follow

Filipinos celebrate Christmas on a budget amid soaring costs

  • Filipinos are choosing modest Christmas gifts, scaling down year-end festivities
  • Millions look to content creators for tips on how to spend less for Christmas dinner

MANILA: As the predominantly Catholic Philippines celebrates one of its most important annual holidays on Thursday, many Filipinos have been forced to rethink their traditional Christmas celebrations amid soaring prices. 

This year, street food vendor Gemma Gracia is among those who will keep her business open during the holidays. 

“As a vendor, I’ve felt the prices go up since I also still buy at the market for our needs and for our selling needs,” she told Arab News. 

But as celebrating Christmas was important for her family, the 39-year-old has allocated 1,000 Philippine pesos ($17) for a family meal out at Jollibee, the Philippines’ biggest fast-food chain restaurant. 

“When you don’t have food to share on the table on this holiday, it’s a sad day. That’s why we make sure that we always have something on the table each year,” she said. 

For many Filipinos, the time-honored traditions of Noche Buena, or Christmas Eve, is the most awaited part of this holiday season, when dinner tables across the country are filled with a hearty selection of traditional dishes. 

Noche Buena, which is Spanish for “the good night,” is the dinner that follows the last evening mass of the season, known as misa de gallo or simbang gabi.

In the Philippines, such festive staples include meaty Filipino-style spaghetti and hamonado, the local version of a Christmas ham that usually serves as the centerpiece of Christmas dinner tables.

But the pinch from rising prices has affected Filipino shoppers in recent years, forcing them to adjust according to their budget. 

Although the country’s central bank said inflation had eased to 1.5 percent in November, many say the statistics do not reflect on-the-ground realities, where people reel from rising retail prices, shrinking portions and diminishing purchasing power of the peso. 

Allan Manansala, a 48-year-old construction worker in Manila, told Arab News that he is expecting to spend 5,000 pesos for his family of five in 2025, nearly a third of his monthly wage and about a fifth higher than what he spent in previous years. 

“I might have to skip giving my children gifts this year because of the costs,” he said. 

To get around the high costs, Manansala is skipping the Noche Buena festivities altogether and has instead decided to splurge on New Year’s Eve dinner, which is also a significant occasion in the Philippines. 

Others, like Allan Melenio, look for different ways to save up. 

“Our relative owns a meat shop, so we’re able to save on that since the prices are quite low,” he told Arab News. “But everywhere else, a piece of meat can cost so much.” 

While the economy has forced Filipinos to make smarter choices and get creative, content creators are among those offering ideas to address consumers’ woes, teaching people how to stretch their meager budgets for the holidays. 

One such tip came from Ninong Ry, a food content creator who challenged himself to prepare an eight-dish Noche Buena dinner with a budget of 1,500 pesos. Posted about two weeks before Christmas, his one-hour YouTube video has since garnered more than 1.4 million views. 

The video was also a response to comments from Philippine Trade Secretary Cristina Aldeguer-Roque, who suggested last month that 500 pesos was enough for a family of four to host a modest Christmas Eve dinner, sparking anger among Filipinos who said she was out of touch with reality. 

Jelmark Toqueb, who works as a plumber in Manila, said that the 500-peso budget was unrealistic. 

“It is clearly not enough. (Five hundred pesos) is not even enough for you to cook spaghetti with meat. Maybe just the noodles and the sauce,” he told Arab News.

For 32-year-old Toqueb and his wife, who works as a public school teacher, the holiday season remains a cherished occasion to spend quality time with the family. As their Christmas tradition involves gift-giving, he chose more modest presents this year to circumvent the high costs. 

“The prices now are different even from last year, (when they were) already high,” Toqueb said. “Even if the gift is simple, it’s fine. It’s the thought that counts.”