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Outlook for Afghan economy ‘dire’ as household incomes shrink: World Bank

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(Last Updated On: April 14, 2022)

The outlook for Afghanistan’s economy is dire with per capita income having fallen by over a third in the last four months of 2021 after the Islamic Emirate of Afghanistan (IEA) seized power and foreign forces withdrew, the World Bank said on Wednesday.

“One of the poorest countries in the world has become much poorer,” said Tobias Haque, World Bank Senior Country Economist for Afghanistan.

“The isolation of the Afghan economy following last August’s political crisis risks…leading to grave poverty, displacement, fragility, and extremism threats,” he told a briefing for the release of the World Bank’s first development update on the country since August Reuters reported.

The IEA takeover prompted foreign governments, led by the United States, to cut development and security aid, and the strict enforcement of sanctions has debilitated the country’s banking sector.

The World Bank update said that incomes had dropped so starkly that around 37% of Afghan households did not have enough money to cover food while 33% could afford food but nothing more, Reuters reported.

An IEA failure to meet Western conditions, in particular access to education for all girls, has led the international community to withhold international assistance and keep financial sanctions in place, with exceptions for humanitarian aid.

“Under current conditions, the outlook for Afghanistan’s economy is dire,” the World Bank said in a statement accompanying the update.

If current conditions continued, the World Bank predicted, Afghanistan’s real gross domestic produce (GDP) per capita would decline by around 34% between the end of 2020 and the end of 2022, reversing all progress since 2007.

The United States cancelled planned meetings in March, some of which would have included the World Bank, to discuss key economic issues after the IEA sent all high school-aged girls home after they had arrived ready for classes.

The U-turn angered donors, foreign governments and many Afghans as IEA officials had previously said they were opening all schools.

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Afghan, Turkmen officials discuss early completion of Herat Noorul Jihad substation

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(Last Updated On: April 30, 2024)

Da Afghanistan Breshna Sherkat (DABS) leadership has met with a delegation from Turkmenistan to discuss the completion and inauguration of the new Herat Noorul Jihad substation.

At the meeting, Mawlawi Abdul Rahman Rahmani, Chief Operating Officer of DABS, provided an update on the progress of the substation and said work on the project is almost complete.

It was agreed that the substation will be operational once all remaining technical issues between the two parties are resolved.

Murad Artikov, Turkmenistan’s Head of International Projects, commended DABS for its cooperation in the construction of the Noorul Jihad substation, and expressed confidence that the project will be completed in the near future.

He also said that a protocol outlining equipment and technical matters will be finalized by both parties.

Upon the completion of this project, the import of electricity from Turkmenistan to Herat is expected to increase, benefiting thousands of new customers in the province.

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Tehran ‘ready to help’ IEA fight terrorism after Herat mosque shooting

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(Last Updated On: April 30, 2024)

Iran’s embassy in Kabul has announced Tehran is ready to work with the Islamic Emirate of Afghanistan (IEA) to fight terrorism.

This came just hours after a gunman opened fire on worshipers at a mosque in Herat province. At least six people are believed to have been killed in the shooting – which the Iranian embassy labeled a “terrorist incident”.

The embassy said it wants the perpetrators identified and punished.

Abdul Mateen Qani, the spokesman of Afghanistan’s Ministry of Interior, said the incident happened on Monday night in Herat province, in the Shahrak area of Guzara District, when an unknown gunman opened fire on worshipers with an AK-47.

Qani said six people died and one was wounded.

He stated that further details would be released later.

So far, no group or individual has claimed responsibility for the attack.

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IEA’s deputy prime minister meets with Chinese ambassador

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(Last Updated On: April 30, 2024)

China’s ambassador to Kabul Zhao Xing, said in a meeting with Mawlawi Abdul Salam Hanafi, the administrative deputy prime minister of the Islamic Emirate, that relations between the two countries were unique on a regional level and that China wants to expand these relations as much as possible in the political, economic and cultural fields.

Zhao said in order to further strengthen relations between the two countries, China provides scholarships to Afghan students and also organizes short-term training courses to improve the capacity of Afghans.

In addition to expressing his sympathy to the victims of the recent flash floods in the country, the Chinese ambassador also announced his country’s offer of $100,000 in aid to flood victims.

Hanafi in turn described relations between the two countries as historical and emphasized the need to keep expanding these ties.

He also said the IEA appreciates China’s position regarding the Islamic Emirate in international forums and said that the Islamic Emirate supports China’s policy and Beijing’s economic projects such as One Belt and One Road.

Hanafi added that the Islamic Emirate wants good relations with all countries and does not allow anyone to use Afghanistan’s soil against other countries.

He said the IEA expects other countries to treat Afghanistan based on mutual respect.

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