Efforts are underway to stem the import of inferior Iranian saffron, which President Ashraf Ghani banned October 7.
The Afghan government is providing incentives for Herat farmers to grow saffron, worth up to $8 per gram, instead of illegal or haram crops such as opium poppies.
Afghanistan moved up 16 places in the World Bank's rankings for ease of doing business.
Afghan saffron has been repeatedly ranked as the world's best, but low-quality saffron smuggled recently from Iran has either been mixed in with Afghan saffron or marketed as such, tainting the reputation of the product.
Poppy farmers in Nangarhar are switching to the legal, money-making flowers to supply perfumes and essential oil to local and foreign customers.
Iran's supreme leader Ayatollah Ali Khamenei said the country's economic problems were the result of internal mismanagement by the government.
Iran is trying to violate global trade practices by illegally exporting its saffron via Afghanistan and consequently is undermining Afghan farmers and the reputation of Afghan goods.
The disruption by Iran of energy supplies to Herat has led to millions of dollars in damage, layoffs and deterioration of living conditions.
The electricity outage has caused massive financial losses, spoiled raw materials and put hundreds of Afghans out of work, local officials and factory owners say.
The Afghan economy is losing millions of dollars through smuggling or transferring of hard currency to Iran from Herat Province, officials and economists warn.
The US has offered political support and planning consultations on extending the Hairatan-to-Mazar-e-Sharif railway, an Uzbek project that observers say could improve stability in Afghanistan.
Farmers find that roses provide more income than opium poppies do and -- equally as important -- do not fund the Taliban.