World Bank2024-06-212024-06-212024-06-21https://hdl.handle.net/10986/41753Since the Interim Taliban Administration (ITA) assumed control of the country in August 2021, Afghanistan’s economy has experienced a significant contraction that affected all sectors. The declines in international aid, economic output, and employment during this period have been compounded by the adverse effects of climate change, insufficient infrastructure, and the inability of most of the population to afford basic food items. The country remains isolated from the global economy, with continued high poverty and tighter restrictions on women’s economic activities. In this context, the World Bank continues to monitor the pulse of the country’s businesses through iterative implementation of a Private Sector Rapid Survey (PSRS). To better understand the economic situation on the ground and identify bottlenecks to growth, there is a need for ongoing collection and analysis of reliable micro-level data from the private sector. This report provides a new update on the private sector operating environment in the country, based on the results of Round 3 of the PSRS, implemented in March 2023, in large part through in-person interviews. The findings of this report underscore key constraints that prevent Afghanistan’s private sector from becoming a self-sustaining endogenous growth engine for economic recovery.en-USCC BY-NC 3.0 IGOECONOMIC GROWTH DIAGNOSTICSPUBLIC SECTOR SURVEY DESIGNDISASTER RISK ASSESSMENTECONOMIC GROWTH POLICYECONOMIC GROWTH ANALYTICSDECENT WORK AND ECONOMIC GROWTHSDG 8NO POVERTYSDG 1ZERO HUNGERSDG 2GENDER EQUALITYSDG 5INDUSTRY, INNOVATION AND INFRASTRUCTURESDG 9CLIMATE ACTIONSDG 13Working PaperWorld Bank10.1596/41753