Business
$1 billion US aid cut to ‘hit Afghan security force funds’
The US would cut $1 billion of its aid to Afghanistan from funds for Afghan security forces, Reuters reported citing to US sources.
The sources have told Reuters that the aid cut would undercut both Kabul’s ability to fight the Taliban and its leverage to negotiate a peace deal with them.
After the US secretary of state, Mike Pompeo failed to convince Ghani and Abdullah to an agreement to resolve the political disputes following the announcement of the results of the election, the US announced a $1 Billion reductions in aid to the country.
Pompeo, however, said the aid cut could be reversed if the two sides resolved their dispute.
Meanwhile, the US’s Principal Deputy Assistant Secretary for South and Central Asian Affairs, said in a tweet that international aid requires partnership with an inclusive government, referring to Afghanistan.
“It can’t be business as usual for international donors in Afghanistan. International aid requires partnership with an inclusive government and we all must hold Afghan leaders accountable to agree on a governing arrangement,” Wells said.
Two U.S. congressional aides have told Reuters on condition of anonymity due to the sensitivity of the matter that State Department officials told Congress the $1 billion would come from a $4.2 billion Pentagon fund that underwrites about three-quarters of the Afghan security forces’ annual budget.
“The idea they would cut security forces funding goes against U.S. national security interests,” one aide has told Reuters, arguing the money is needed to maintain the U.S.-backed government’s ability to fight the Taliban while preserving its bargaining power in peace talks.
Most of the fund pays for salaries, food, fuel, equipment, and infrastructure to support Afghan troops and national police, the report said.
Business
‘Made in Afghanistan’ expo opens in Tashkent
The Afghanistan Chamber of Commerce and Investment has announced that a major exhibition of Afghan products titled “Made in Afghanistan” is opening today (Wednesday) in Uzbekistan’s capital Tashkent.
According to the chamber, the expo—supported financially by the United Nations Development Programme—will run until Friday and aims to showcase Afghanistan’s production and export potential.
More than 60 booths have been set up by Afghan traders, featuring a wide range of products including carpets, dried and fresh fruits, saffron, pine nuts, cotton, precious and semi-precious stones, as well as beverages.
Officials from the chamber expressed hope that the expo will help expand trade relations between Afghanistan and countries in the region, particularly Uzbekistan.
Business
Afghani strengthens nearly 10% against US dollar amid banking sector reforms
The bank said it has expanded oversight of financial institutions and private lenders, improving transparency and promoting more consistent standards across the sector.
Afghanistan’s central bank, Da Afghanistan Bank, says the national currency has appreciated by 9.93% against the US dollar during the year 1404, citing steady progress in the country’s financial and banking systems.
Officials attributed the gains to cautious monetary policies that have helped stabilise the Afghani against major global currencies while also boosting its value against the dollar.
The bank said it has expanded oversight of financial institutions and private lenders, improving transparency and promoting more consistent standards across the sector.
As part of efforts to better manage liquidity, authorities also collected and destroyed worn-out banknotes in circulation. At the same time, officials reported growth in electronic banking, with digital payment usage rising in recent months.
Central bank spokesperson Haseebullah Noori said initiatives are underway to broaden access to banking services nationwide, including the wider rollout of Islamic banking options.
Analysts welcomed the stabilisation efforts but stressed the need to address ongoing challenges facing domestic banks, including the impact of international financial sanctions on Afghanistan.
They added that expanding Islamic banking could help draw more savings into the formal financial system, noting that a significant share of personal wealth remains outside banks. Bringing those funds into the sector, they said, could inject billions of Afghanis into the economy and further support financial stability.
Business
Uzbekistan delivers over 290 tons of aid to Afghanistan
The assistance, provided ahead of Eid al-Fitr, is intended to support vulnerable communities while reinforcing ties between the neighboring countries.
Uzbekistan has delivered more than 290 tons of humanitarian aid to Afghanistan, according to the country’s Ministry of Foreign Affairs.
The assistance, provided ahead of Eid al-Fitr, is intended to support vulnerable communities while reinforcing ties between the neighboring countries.
The shipment includes essential food supplies such as flour, rice, wheat, vegetable oil, instant meals, pasta, and confectionery. An official handover ceremony was held in the border town of Hairatan.
Local officials, including Balkh province representatives and authorities from Hairatan, expressed appreciation for the continued support, acknowledging Uzbekistan’s efforts to assist the Afghan people.
Among those present at the ceremony were Uzbekistan’s Ambassador to Afghanistan, Oybek Usmanov, and Surkhandarya regional governor Ulugbek Kosimov.
The aid delivery underscores Uzbekistan’s ongoing humanitarian engagement and its broader efforts to promote regional cooperation and stability.
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