Due to a failure to improve the stagnating economy, he lost both positions on 9 June 1971 and became ambassador to Italy. Unlike many politicians who were prominent under the rule of Zahir Shah, Etemadi remained in the government after the 1973 coup in which a republic was established under the rule of Mohammed Daoud Khan.
Because of economic stagnation, he vacated both roles on June 9, 1971, and took up the position as an Italian ambassador. Unlike other politicians who were influential during Zahir Shah's rule, Etemadi remained in government after the 1973 coup that transformed Afghanistan into a republic under Mohammed Daoud Khan.