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U.S. Cuts $160m Aid to Afghanistan Because of Gov’t Corruption
The U.S. has cut $160 million aid for Afghanistan on Thursday while accusing Afghan government of failing to fight corruption.
The U.S. Secretary of State, Mike Pompeo said in a statement that “Afghan government institutions and leaders must be transparent and accountable to the Afghan people.”
Pompeo added that the U.S. stands against those who “exploit” their positions of power and influence to deprive the Afghan people of the benefits of foreign assistance and a more prosperous future.
The U.S. had allocated $100 million for an energy infrastructure project in the country, “which consists of five substations and other transmission infrastructure between Ghazni and Kandahar and Kajaki and Kandahar.”
“Due to identified Afghan Government corruption and financial mismanagement, the U.S. Government is returning approximately $100 million to the U.S. Treasury that was intended for a large energy infrastructure project,” the statement said.
However, Pompeo said that his country would still complete the project but wouldn’t spend the money through the Afghan government.
“We will be using a U.S. Government “off-budget” mechanism given the Afghan government’s inability to transparently manage U.S. Government resources,” Pompeo noted.
Meanwhile, the U.S. will be “withholding” another $60 million in planned assistance for Afghanistan due to the government’s failure to meet benchmarks for transparency and accountability in public financial management.
“We expect the Afghan government to demonstrate a clear commitment to fight corruption, to serve the Afghan people, and to maintain their trust,” Pompeo said adding, “Afghan leaders who fail to meet this standard should be held accountable.”
“We also have concluded that the Afghan government’s Monitoring and Evaluation Committee is incapable of being a partner in the international effort to build a better future for the Afghan people,” U.S. Secretary of State underscored.
“We will cease funding to this entity at the end of this calendar year,” he said. “American taxpayers and the Afghan people can count on the United States to act when we see assistance funds misused.”
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China seeking to build trust between Afghanistan and Pakistan
Zhao Xing, China’s ambassador to Kabul, told Amir Khan Muttaqi, Afghanistan’s foreign minister, that his country is working to create an atmosphere of trust between Afghanistan and Pakistan and has initiated talks with neutrality and cooperation.
According to a statement from the Ministry of Foreign Affairs of the Islamic Emirate, the meeting focused on bilateral cooperation, regional developments, and the ongoing dialogue process between Afghanistan and Pakistan, which took place in the city of Urumqi, China.
During the meeting, Zhao added that he hopes, given an understanding of the regional geopolitical situation, that the process of confidence-building, goodwill, and tension-free relations between Afghanistan and Pakistan will continue.
Muttaqi, while positively assessing the bilateral relations and existing cooperation between the two countries, expressed gratitude to his Chinese counterpart and their team for facilitating and hosting the Urumqi talks, as well as to Saudi Arabia, Turkey, Qatar, and the United Arab Emirates for their mediating efforts.
Muttaqi stated that so far there have been good discussions between Kabul and Islamabad and expressed hope that minor differences in interpretation do not hinder the progress of the negotiations.
The foreign minister emphasized that the Islamic Emirate of Afghanistan’s stance regarding tensions has been defensive, considering the protection of its territory a legitimate right, and remains committed to continued understanding and dialogue based on mutual respect and comprehension.
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Japan and UNDP launch $2.35 million livelihoods initiative in Afghanistan
The Government of Japan, in partnership with the United Nations Development Programme, has launched a new $2.35 million initiative aimed at supporting vulnerable communities in Afghanistan facing economic hardship, climate shocks, and the aftermath of the country’s collapsing poppy economy.
The project, titled “Resilient Income Solutions Empowering Alternative Livelihoods (RISE)”, will run from March 2026 to March 2027 and target some of the country’s most affected regions, including Balkh Province and Nimroz province.
Funded by the Japan, the initiative seeks to help vulnerable Afghans, particularly women and women-led households, transition to sustainable sources of income.
The program will invest in productive infrastructure such as irrigation systems, water management facilities, and market-supporting assets, while also strengthening local value chains and supporting women-led businesses.
The project comes at a critical time, as Afghanistan faces overlapping challenges, including food insecurity, large-scale returnee movements, and limited economic opportunities. By promoting alternative livelihoods, the initiative aims to reduce reliance on illicit economies and help stabilize high-risk communities.
Japanese Ambassador to Afghanistan, Kenichi Masamoto, reaffirmed Japan’s commitment to the country’s recovery. “This project will build upon our previous support to continue providing much-needed sustainable livelihood opportunities, especially for women and vulnerable communities,” he said.
Meanwhile, Stephen Rodriques, Resident Representative of UNDP in Afghanistan, highlighted the urgency of such efforts. He described the initiative as part of a long-standing partnership between Japan and UNDP, adding that it “offers hope to vulnerable communities most affected by ongoing economic, social, and environmental crises.”
In addition to infrastructure and economic support, the RISE project will promote social cohesion by bringing together host communities and returnees through shared economic activities.
The initiative builds on UNDP’s earlier programs under the Area-Based Approach to Development Emergency Initiatives (ABADEI) and aligns with broader UN strategies for Afghanistan, with a focus on inclusive recovery and long-term stability.
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Afghan Public Works Minister and Iran envoy discuss economic, trade ties in Kabul
Mullah Mohammad Isa Sani, the Islamic Emirate’s Minister of Public Works, met Tuesday with Alireza Bikdeli, Iran’s ambassador in Kabul, to discuss the expansion of economic and trade relations between Afghanistan and Iran.
The talks also covered railway construction projects, increasing transport along the Khaf–Herat railway, and the comprehensive development of trade transit facilities between the two countries.
Mohammad Ashraf Haqshenas, spokesperson for the Ministry of Public Works, said that during the meeting both sides emphasized joint cooperation between Afghanistan and Iran and discussed projects related to the repair, reconstruction, and modernization of railways, roads, and bridges.
According to Haqshenas, the meeting also stressed further strengthening economic ties between Afghanistan and Iran, increasing trade exchanges, and continuing close and sustainable cooperation in infrastructure projects.
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