Historically, there has been a dearth of information and reliable statistics about Afghanistan's economy. The 1979 Soviet invasion and ensuing civil war destroyed much of the country's limited infrastructure and disrupted normal patterns of economic activity. Gross domestic product had fallen substantially because of loss of labor and capital and disruption of trade and transport. Continuing internal strife hampered both domestic efforts at reconstruction as well as international aid efforts. However, Afghanistanís economy has grown at a fast pace since the 2001 fall of the Taliban, albeit from a low base. In 2003, growth was estimated at close to 30%, and the estimated growth rate for 2004 was 7.5%.

Overall agricultural production dramatically declined following severe drought as well as sustained fighting, instability in rural areas, and deteriorated infrastructure. The easing of the drought and the end of civil war produced the largest wheat harvest in 25 years during 2003. Wheat production was an estimated 58% higher than in 2002. However, the country still needed to import an estimated one million tons of wheat to meet its requirements for the 2003 year. Millions of Afghans, particularly in rural areas, remained dependent on food aid.

Opium has become a source of cash for many Afghans, especially following the breakdown in central authority after the Soviet withdrawal, and opium-derived revenues probably constituted a major source of income for the two main factions during the civil war in the 1990s. Opium is easy to cultivate and transport and offers a quick source of income for impoverished Afghans. Afghanistan was the world's largest producer of raw opium in 2005. Much of Afghanistan's opium production is refined into heroin and is either consumed by a growing regional addict population or exported, primarily to Western Europe.

The most important resource has been natural gas, first tapped in 1967. At their peak during the 1980s, natural gas sales accounted for $300 million a year in export revenues (56% of the total). Ninety percent of these exports went to the Soviet Union to pay for imports and debts. However, during the withdrawal of Soviet troops in 1989, Afghanistan's natural gas fields were capped to prevent sabotage by the mujahidin. Restoration of gas production has been hampered by internal strife and the disruption of traditional trading relationships following the collapse of the Soviet Union. Trade in smuggled goods into Pakistan once constituted a major source of revenue for Afghan regimes, including the Taliban, and still figures as an important element in the Afghan economy, although efforts are underway to formalize this trade.

Reviving the Road: Restoration of the highway has been an overriding priority of President Hamid Karzai. It is crucial to extending the influence of the new government. Without the highway link, Afghanistanís civil society and economy would remain moribund and prey to divisive forces. The economic development that the highway makes possible will help guarantee the unity and long-term security of the Afghan people. The restored highway is a visually impressive achievement whose symbolic importance should not be underestimated. It marks a palpable transition from the recent past and represents an important building block for the future. Recently, an official in Herat likened the ring road to veins and arteries that nourish and bring life to the "heart" of Kabul and the body of the country. The highway will not end in Kandahar: there are plans to complete the circuit, extending it to Herat and then arcing it back through Mazar-e Sharif to Kabul. The route is sometimes referred to as the Ring Road.

Landlocked Afghanistan has no functioning railways, but the Amu Darya (Oxus) River, which forms part of Afghanistan's border with Turkmenistan, Uzbekistan, and Tajikistan, has barge traffic. During their occupation of the country, the Soviets completed a bridge across the Amu Darya. The United States, in partnership with Norway, has agreed to reconstruct this bridge, which will stretch more than 650 meters over the Amu Darya/Pyandzh River between Afghanistan and Tajikistan, near Pyanji Poyon (Tajikistan) and Shir Khan Bandar (Afghanistan). The bridge is set for completion in 2007.

Afghanistanís national airline, Ariana, operates domestic and international routes, including flights to New Delhi, Islamabad, Dubai, Moscow, Istanbul, Tehran, and Frankfurt. A private carrier, Kam Air, commenced domestic operations in November 2003. Many sections of Afghanistanís highway and regional road system are undergoing significant reconstruction. The U.S. (with assistance from Japan) completed building a highway linking Kabul to the southern regional capital, Kandahar. Construction is soon to begin on the next phase of highway reconstruction between Kandahar and the western city of Herat. The Asian Development Bank is nearing completion on a road reconstruction project between Kandahar and Spin Boldak, located at the southeastern border with Pakistan.