Business
EU helps Afghanistan with debt relief amid ongoing pandemic
The EU announced Tuesday it will provide Afghanistan with 2.9 million Euros in grant funding to be used towards debt relief in a bid to help the country maintain its commitment and path towards reaching its Sustainable Development Goals.
The EU said in a statement the ongoing pandemic has carried severe health, social and economic consequences around the world, including in Afghanistan. In many developing countries, debt levels were already high before the crisis and are now at risk of becoming unsustainable.
“Afghanistan has to cope with sharply declining revenue as a consequence of the crisis, driven by restrictions on economic activity and trade. Tax revenue dropped by 40 percent in April–May 2020 while the expenditure burden for health and other social services increased,” the statement read.
“The Afghan government successfully managed to borrow considerable amounts in highly concessional loans from the IMF to cover its fiscal deficit during the crisis. Although Afghanistan’s debt level still remains low, the current revenue position increased vulnerability,” read the statement.
EU Chargé d’ Affaires Arnout Pauwels meanwhile said: “Today’s announcement is good news for Afghanistan, as this additional funding will free space to increase the social, health and economic spending in response to the COVID-19 crisis.
“This comes in addition to the substantial support the EU has already provided to Afghanistan to tackle the pandemic, both bilaterally and through the COVAX facility,” he said.
The support announced Tuesday will also contribute to Afghanistan’s macro-economic stability. This comes at an important moment, as the EU’s assessment of the government’s performance on the 2020 State and Resilience Budget Support begins. For years, economic stability and sound public finance management have been at the heart of the EU’s dialogue with countries receiving EU budget support.
Since the start of the pandemic, the EU has mobilised almost 147 million euros to Afghanistan to address the immediate health crisis and provide humanitarian assistance to the people in need. As the largest donor to the COVAX facility, the EU and its member states have also enabled the delivery of almost 500,000 doses of vaccine to Afghanistan.
Cooperation between the Afghanistan Chamber of Commerce and Investment and the Uzbekistan Chamber of Commerce has paved the way for exporting potatoes from Bamyan province to the Uzbek market.
In this regard, Sayed Karim Hashemi, President of the Afghanistan Chamber of Commerce and Investment, and Doran Vahabov, President of the Uzbekistan Chamber of Commerce, have agreed on the export of 100,000 tons of Bamyan potatoes to Uzbekistan. Work is underway to finalize the export agreement.
Meanwhile, the first shipment of potatoes, consisting of eight trucks, has departed for the Uzbek city of Termez through the Hairatan Port.
The chambers of commerce of both countries, in cooperation with local authorities in Bamyan, have facilitated connections between traders and farmers and coordinated the purchasing, marketing, and transportation of the produce. This initiative is expected to expand market opportunities for Bamyan farmers and strengthen trade between Afghanistan and Uzbekistan.
Afghanistan’s Deputy Minister of Industry and Commerce, Ahmadullah Zahid, has travelled to India to attend the India International Trade Fair (IITF) 2026 in New Delhi.
The ministry said Zahid is scheduled to meet senior Indian government officials, trade representatives and investors during the visit.
Discussions are expected to focus on expanding bilateral trade and economic relations, increasing trade between the two countries, exploring new markets for Afghan products and identifying opportunities for joint investment.
The ministry said the visit aims to strengthen trade cooperation, promote Afghanistan’s production and export potential, and create new opportunities for economic engagement between Kabul and New Delhi.
The 45th India International Trade Fair (IITF) 2026 takes place from November 13 to November 27 in New Delhi.
Business
Afghanistan hosts dialogue on Islamic microfinance to expand access to Sharia-compliant financial services
Participants also explored practical solutions and future steps to strengthen the sector, emphasizing the importance of cooperation, knowledge-sharing and better coordination among relevant institutions.
A dialogue on Islamic microfinance was held in Kabul on Wednesday, bringing together representatives of financial institutions, government authorities, international partners and Afghanistan’s microfinance sector to discuss ways of expanding inclusive financial services in the country.
The event was organized by The Liaison Office in coordination with the Afghanistan Microfinance Association (AMA), Da Afghanistan Bank (DAB) and the Indonesian Embassy in Kabul.
Participants discussed opportunities and challenges facing the development of Islamic microfinance services, with a focus on expanding access to financial products that comply with Islamic Sharia principles.
Representatives of AMA, Da Afghanistan Bank and the Indonesian Ambassador to Afghanistan delivered keynote remarks, highlighting the current situation of the microfinance sector, international experiences and opportunities for developing diverse Islamic financial products.
Two panel discussions focused on major challenges facing microfinance institutions, including structural barriers to growth, limited access to capital, funding and liquidity constraints, difficulties in securing guarantees, and the long-term sustainability of Islamic microfinance services.
Participants also explored practical solutions and future steps to strengthen the sector, emphasizing the importance of cooperation, knowledge-sharing and better coordination among relevant institutions.
The dialogue concluded with calls for stronger collaboration among financial institutions and development partners to improve access to inclusive, sustainable and Sharia-compliant financial services across Afghanistan.
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