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IEA’s finances in much better shape: The Economist

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The Islamic Emirate of Afghanistan’s (IEA) finances appear to be in much better shape than expected, The Economist magazine said in an article published Wednesday.

The British media outlet said that when the IEA seized power, it seemed obvious that they would struggle to administer a country of 40 million, especially for lack of money.

“Yet the new government’s finances appear to be in much better shape than anybody expected,” the report read.

Last month IEA announced its first full-year budget, forecasting revenues of $2.1bn.

The World Bank’s estimate is more modest but still impressive: it reckons the government will collect about $1.7bn this year (about 12% of GDP) in domestic revenue, from things like taxes, customs and fees for services.

That is nearly three-quarters of the $2.3bn the previous government raised domestically in 2020, before business and trade dried up and many taxpaying Afghans left the country.

The previous government’s total funding including foreign finance came to $5.7 billion, but IEA do not have access to the grants and loans that made up the rest.

The Economist said that the IEA managing to keep revenue flowing despite the obstacle is “remarkable.” One reason for their success is that they have plenty of experience collecting taxes, it noted.

Moreover, a handful of holdovers from the former government are maintaining sophisticated financial-management software to run their revenue-collection systems.

IEA has also cracked down on graft, a serious problem under the previous government, The Economist noted.

IEA’s Ministry of Finance welcomed the report, saying the government was seeking to make Afghanistan self-reliant.

“IEA members together with former professionals are working in a brotherhood atmosphere and with it transparency has come and revenues have increased. We have stopped corruption that unimaginably existed in the ministry of finance,” said Ahmad Wali Haqmal, a spokesman of the Finance Ministry.

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Afghanistan says Pakistani military post destroyed near Spin Boldak

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Afghanistan’s Ministry of Defense says a Pakistani military post near Spin Boldak was targeted and destroyed after Pakistani forces opened fire toward Afghanistan.

Ministry spokesperson Enayatullah Khwarazmi said in a post on X that Afghan forces suffered no casualties or damage in the clash.

Khwarazmi also rejected claims made by the Pakistani side about the incident, describing them as “propaganda.”

 

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Mujahid: Pakistan attacking Afghanistan to evade Mecca Pact responsibilities

He warned that the Islamic Emirate would give an “appropriate response” to what he called the Pakistani military regime’s “bullying.”

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Islamic Emirate spokesperson Zabihullah Mujahid has accused Pakistan of carrying out attacks on Afghanistan to divert attention from its domestic problems and to evade responsibilities under the “Mecca Pact.”

Speaking at a religious seminary in Kandahar, Mujahid said Pakistan was facing political and economic challenges at home and was using attacks on Afghanistan to shift public attention away from protests and its internal problems.

“Pakistan, by violating the territory of its neighboring Islamic country, wants to divert attention from its failures,” he said.

Mujahid also criticized Pakistan’s political situation, claiming that political space had been restricted and that freedoms guaranteed under the country’s laws were not being allowed.

He said Pakistan’s economic problems had also increased significantly and accused the country of seeking to distract the public from those problems by engaging in conflict with Afghanistan.

Mujahid further accused Pakistan’s military leadership of putting the Pakistani people at risk through what he described as its “false position.”

He warned that the Islamic Emirate would give an “appropriate response” to what he called the Pakistani military regime’s “bullying.”

His remarks followed Pakistani airstrikes on Kandahar, Paktia and Khost provinces on Thursday, which Afghan authorities said killed four civilians.

The strikes came three days after attacks on Kunar and Paktika provinces, in which Afghan authorities said three civilians were killed.

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Kabul rejects U.S. claim that meth seized in Pakistan was of Afghan origin

Balkhi said the Islamic Emirate of Afghanistan (IEA) has imposed an absolute ban on the production, trafficking and use of all types of narcotics in Afghanistan.

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Afghanistan’s Foreign Ministry spokesperson Abdul Qahar Balkhi has rejected a U.S. claim that 463 kilograms of synthetic drugs seized in Pakistan were of Afghan origin, calling the attribution “unfounded and politically motivated.”

Balkhi said the U.S. Embassy in Islamabad should investigate the origin of the seized drugs in Pakistan rather than attributing them to Afghanistan.

“The attribution by the U.S. Embassy in Islamabad of the synthetic drugs bound for Sri Lanka and intercepted in Pakistan through joint U.S.-Pakistani efforts as ‘Afghan-origin’ is an unfounded and politically motivated allegation,” Balkhi said.

He said the Islamic Emirate of Afghanistan (IEA) has imposed an absolute ban on the production, trafficking and use of all types of narcotics in Afghanistan.

Balkhi also claimed that following the ban in Afghanistan, the cultivation, production and trafficking of narcotics have increased “on the other side of the Durand Line.”

He further argued that Afghanistan does not have the capacity to produce synthetic drugs and said crossing points along the Durand Line have been completely closed to all movement for nearly a year.

His remarks came after the U.S. Embassy in Islamabad said U.S. and Pakistani anti-narcotics authorities had seized 463 kilograms of crystal methamphetamine worth an estimated $21 million and bound for Sri Lanka.

The embassy said the operation led to multiple arrests and highlighted ongoing U.S. cooperation and training with Pakistani authorities to disrupt international drug-trafficking networks.

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