The forced deportation of migrants from Iran has not only triggered a severe humanitarian crisis in Afghanistan but also dealt a significant blow to the country’s economy. Many families in Afghanistan who relied on remittances sent by relatives working in Iran have now lost their primary source of income and are facing widespread hardship. These migrants also played a critical role in supporting the liquidity of Afghanistan’s informal economy. The money sent home through informal transfer systems has been vital to the survival of numerous households.
Economic experts estimate that migrants from Afghanistan residing in Iran send approximately $500 million annually to support their families, purchase property, or fund charitable activities. With the mass deportation of these migrants, remittance flows have sharply declined, severely impacting household purchasing power and the overall economy of Afghanistan.
Thousands of citizens of Afghanistan working in Iran regularly send their income through informal remittance systems to their families back home. These funds fuel Afghanistan’s domestic economy and are crucial to financial stability and household sustenance. However, with the onset of widespread deportations, access to these financial resources has dwindled. This decline has led to reduced cash circulation, further stagnation in the informal economy, and mounting pressure on families who relied on such remittances. Consequently, poverty among these families has intensified, raising growing concerns over renewed migration or increased dependence on foreign humanitarian aid.
Some remittance service providers confirm that since the wave of deportations began, the volume of customer transfers has dropped sharply. According to them, migrants in Iran used to send money to relatives not only in Afghanistan but also in Pakistan. With the mass deportations, the ability to send money has diminished and become more restricted.
One remittance agent, who asked to remain anonymous, said: “In the past few days, transfers have drastically decreased. During this wave of deportations, we had only one remittance. Previously, we had many. Now we sit idle. Most of the migrants have been deported or haven’t received their wages from employers. This situation has had a major impact on the money market.”
Azarkhsh Hafizi, an economic expert and board member of Afghanistan’s Chamber of Commerce and Investment (ACCI), told the Hasht-e Subh Daily that Afghan workers and citizens in Iran send an estimated $500 million annually to their families or for property purchases and other investments in Afghanistan. He said that with the mass exodus of these individuals from Iran, the amount of transferred funds has declined significantly, weakening household purchasing power, stalling the market, and disrupting the currency balance and financial services in the country.
Hafizi added that by the end of 2024, estimates showed that out of the approximately $2.7 billion remitted annually by Afghanistan’s migrant workers abroad, about $500 million originated from Iran. He emphasized that these migrants, who share their income with families back home, play a vital role in boosting purchasing power and energizing markets. Their collective departure from Iran constitutes an economic disaster for Afghanistan.
He further noted that most of those being deported from host countries are young, skilled workers. However, there are no job opportunities for them within Afghanistan, leading to an even more serious crisis. According to Hafizi, not only Iran and Pakistan but also countries like the United States, Germany, Turkey, and others that are deporting migrants from Afghanistan are not only putting the lives of these individuals at risk but also plunging their families in Afghanistan into economic turmoil.
Mir Shekab Mir, former head of financial services development at the Central Bank of Afghanistan under the previous government, also told the Hasht-e Subh Daily that migrants residing in Iran played a major role in sustaining their families by sending money back home. He said these remittances not only supported daily needs but also had a generally positive impact on household economies in Afghanistan.
The International Organization for Migration (IOM) had earlier reported that after the collapse of Afghanistan’s financial system, approximately 90 percent of financial transactions in the country are carried out via remittances. According to the report, over 900 remittance companies and individuals are active across Afghanistan and play a vital role in maintaining liquidity and cash flow. These reports also indicate that about 15 percent of rural households receive remittances, covering an average of 20 percent of their living expenses.
For years, migrant remittances have been a significant source of income for many households in Afghanistan. Estimates suggest that around 5 percent of the population lives in households where remittances are the primary source of income. For many, the money sent by relatives abroad has been essential, sometimes the only means of survival. For example, in 2020, the total remittances sent to Afghanistan were estimated at approximately $787 million—an amount equal to roughly 4 percent of the country’s GDP.
Concerns are growing as, under Iran’s Ministry of Labor and Social Affairs directive, workers from Afghanistan are only allowed to work in hard and low-paying jobs such as construction labor, waste collection, and agriculture. This policy severely restricts employment opportunities for migrants and exposes them to exploitation, economic insecurity, and forced deportation.
Following the 12-day war with Israel, Iran has accelerated the mass deportation of asylum seekers from Afghanistan, reportedly returning up to 30,000 individuals daily. This move has sparked widespread alarm.
Deported migrants are only able to return to their home provinces from the Islam Qala border with the help of local charitable aid. In Herat, residents have distributed food and water to them.
Roza Otunbayeva, Head of the United Nations Assistance Mission in Afghanistan (UNAMA), has called for an urgent response to the situation of returnees. She warned that this issue should sound the alarm for the international community, stressing that managing this crisis exceeds the capacity of humanitarian organizations.
You can read the Persian version of this report here:
قطع جریان حوالهها از ایران؛ بحران اقتصادی در افغانستان عمیقتر میشود
