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COVID-19 wreaks havoc on livelihoods of Afghans: World Bank report 

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Photo credit: World Bank
(Last Updated On: October 25, 2022)

COVID-19 will have a profound effect on Afghanistan’s economy which is likely to contract by between 5.5 percent and 7.4 percent this year, said the World Bank in its latest biannual Afghanistan Development Update. 

According to the World Bank, this will exacerbate poverty and lead to a sharp decline in government revenue. 

“The COVID-19 crisis is having a devastating impact on the livelihoods of Afghans while undermining the government’s revenue collection and its capacity to finance comprehensive programs to save lives, protect the poor, and jumpstart the economy,” said Henry Kerali, World Bank Country Director for Afghanistan.

The report titled Surviving the Storm was released on Wednesday and examines the coronavirus impacts on Afghanistan’s economic development. 

As stated in the report, COVID-19 has hit Afghanistan in the midst of a difficult political transition, an intensifying conflict, and significant uncertainty regarding future grant support. 

“While a peace agreement has been signed between the US and the Taliban, laying the foundations for negotiation of a comprehensive political settlement, Taliban attacks on Afghan security forces have intensified,” the report states. 

It also points out the future of international assistance remains in question, while the US has substantially reduced troop numbers this year, with further reductions likely. 

Current grant pledges expire at the end of 2020, and international partners are due to consider future aid commitments at an international conference in November. 

“Without progress towards a sustainable peace and commitments to continued grant support from international partners, medium-term prospects appear increasingly grim,” read the report.  

The report warns that the proportion of Afghans living in poverty may increase from 55 percent in 2017 to between 61 percent and 72 percent in 2020 because of declining incomes and the rising cost of food. The report finds that economic activity plummeted in the first half of 2020 as lockdowns and social distancing measures to curb COVID-19 negatively impacted the industry and service sectors. 

To address the impacts of the crisis, the report recommends that tightly constrained public expenditures be carefully prioritized to protect the most vulnerable and limit long-term economic damage. 

The report highlights the need for continued financial support from development partners. 

“Short-term measures are needed to support households through the current crisis, while improvements in the business regulatory environment and maintaining the core functions of government will pave the way for longer-term recovery,” said Kerali. 

“Ongoing support from development partners will help finance critical government operations and restore private sector confidence. The World Bank is working closely with the Government of Afghanistan both to implement the short-term response and lay the foundations for longer-term recovery,” Kerali added.

For full report CLICK HERE 

https://documents.worldbank.org/en/publication/documents-reports/documentdetail/132851594655294015/afghanistan-development-update-surviving-the-storm 

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Turkmenistan makes ‘significant progress’ on TAPI pipeline project

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(Last Updated On: April 29, 2024)

Turkmenistan has made “significant progress” on the Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline project, said TAPI Pipeline Company Limited CEO Muhammetmyrat Amanov.

“Turkmenistan is making significant progress on the TAPI natural gas pipeline, which will supply 33 billion cubic meters to South Asia annually,” he said.

Speaking at the Turkmen Energy Investment Forum (TEIF 2024) currently being held in Paris, Amanov highlighted that Turkmenistan’s section of the pipeline had been completed and ongoing discussions to advance the project beyond Turkmenistan were in strict alignment with the international standards.

He said the project envisaged environmental sustainability by leveraging natural gas to reduce emissions significantly compared to coal and oil, thereby tackling indoor pollution and enhancing regional air quality.

“In light of the ongoing project developments, Turkmenistan remains committed to upholding the international law, fulfilling its obligations and adhering to international norms and regulations,” he said.

This approach reaffirms Turkmenistan’s dedication to global cooperation and legal integrity in executing the TAPI project.

Looking ahead, the project’s focus is shifting to the Herat Offtake Strategy in Afghanistan, which will play a critical role in environmental protection by reducing air pollution, while also contributing to maintaining public safety, he said.

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Azizi calls on Malaysian investors to invest in Afghanistan

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(Last Updated On: April 24, 2024)

Nooruddin Azizi, Acting Minister of Commerce and Industry, met with representatives from the ministries of foreign affairs, defense and interior of Malaysia, along with other senior officials, on Wednesday and called on Malaysians to invest in Afghanistan.

The visiting delegation is being led by senior diplomat Dr. Shazelina Zainul Abidin.

According to the IEA’s foreign ministry, the two sides discussed bilateral trade, holding a business communication conference to strengthen trade relations between the two countries, the trade balance between Afghanistan and Malaysia, and creating a market for Afghan products, including carpets, cotton, and minerals.

According to the ministry, at the end of the meeting, the Acting Minister emphasized the increase of investment from regional countries in Afghanistan and called on Malaysian investors to also invest in Afghanistan.

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Afghanistan starts exporting via railway to Turkey

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(Last Updated On: April 22, 2024)

The Ministry of Interior says that Afghanistan has started exporting goods to Turkey via the Herat-Khaf railway line.

In a post on X, the ministry said: “Afghanistan’s exports to Turkey started in a calm atmosphere through the Herat-Khaf railway line.”

The ministry added that one train will run daily for a month and then two trains will run daily.

According to the ministry, the security of Khaf-Herat railway line is provided by the guards of the National Public Protection Agency.

Khaf-Herat railway project not only connects Iran and Afghanistan by rail, but also completes a 2,000-kilometer route along the east-west rail corridor from China, through Uzbekistan, to Afghanistan, to Iran, and on to Turkey and Europe.

As a landlocked country, this railway network will provide a safe route to connect with Europe via Iran’s railway network and Iran’s southern ports.

This railway line is strategic for trade between Iran and Afghanistan and will allow six million tons of goods to be sent between the two countries.

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