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Flow of US dollars into Afghanistan ‘weakens Pakistan’s foreign exchange reserves’

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The chairman of Pakistan’s Forex Association says that over the past few months, about $2 billion dollars has entered Afghanistan through the country’s border, both legally and illegally.

Speaking at a press conference on Tuesday, Malik Bostan said that in the past, millions of dollars flowed into Pakistan from Afghanistan and was exchanged in the country, but this trend has not reversed.

“About two billion dollars have gone to Afghanistan from Pakistan in the form of official and unofficial trade, abuse of transit trade, smuggling and through the borders, and this has weakened Pakistan’s foreign exchange reserves and caused a heavy decrease in the value of the currency,” said Bostan.

According to him, Pakistan’s economy is suffering irreparable damage due to Afghanistan’s transit trade, which has grown significantly.

“In Afghanistan, due to economic sanctions, the bank account and system are frozen, so our trade with Afghanistan is not done through banking channels, but in cash,” he said.

“Only about 15,000 people go to Afghanistan every day and each of them brings $1,000 into this country, which is a total of $15 million dollars entering Afghanistan every day, and this has become uncontrollable,” he added.

According to him, at the beginning of the Islamic Emirate’s rule in Afghanistan, Pakistan’s foreign exchange reserves were $22 billion dollars and its import bill was $4.5 billion dollars.

This is while the border police of Herat province arrested two people who wanted to import $80,000 into Iran.

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‘Media freedom is increasingly restricted’ in Afghanistan: Gagnon

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Georgette Gagnon, Deputy Secretary-General’s Special Representative for Afghanistan, stated in her latest report to the UN Security Council that Media freedom in Afghanistan has become increasingly restricted.

In her report, released on the occasion of International Human Rights Day, Gagnon said: “Media freedom is increasingly restricted. Journalists face intimidation, detention, and censorship, reducing the space for public debate and public participation with people excluded from decisions on their own future.”

According to Gagnon’s report, the people of Afghanistan continue to face multiple crises, and their situation requires urgent attention and broader support from the international community.

She added: “Women and girls continue to be systematically excluded from almost all aspects of public life. The ban on secondary and tertiary education for girls persists now into its fourth year, depriving Afghanistan of female doctors, entrepreneurs, teachers, and leaders critical to the country today and for its future.”

Meanwhile, the Islamic Emirate has repeatedly emphasized that media in the country can operate freely according to Islamic principles and national interests, and that citizens’ rights, especially those of women are safeguarded within the framework of religion.

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Bertrand assures Muttaqi of continuation of EU assistance to Afghanistan

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The Ministry of Foreign Affairs of the Islamic Emirate said in a statement on Wednesday that Gilles Bertrand, the newly appointed EU Special Envoy for Afghanistan, has assured the IEA of the continuation of EU assistance to the country.

Bertrand made these remarks during a meeting with Amir Khan Muttaqi, the Minister of Foreign Affairs.

Bertrand has praised the Islamic Emirate for their four-year achievements in areas of stability, security and economy, assuring continued EU assistance and calling for expanded cooperation to attract major foreign investment to the country.

The statement added that Bertrand praised the IEA as well for accommodating millions of returning Afghan migrants.

He also noted the EU’s increased attention and cooperation in the economic sector, particularly regarding Afghanistan’s private sector and called for further collaboration between the two sides to attract investment from major international companies.

During the meeting, Muttaqi expressed appreciation for the work of the EU’s previous envoy for Afghanistan within the framework of humanitarian cooperation.

Muttaqi also highlighted major projects launched by the Islamic Emirate of Afghanistan over the past four years and called on the European Union to take positive steps toward Afghanistan’s development in various areas.

In conclusion, both sides emphasized the continuation of cooperation and such meetings.

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Regional powers intensify mediation as Kabul–Islamabad tensions escalate

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Tensions between Kabul and Islamabad continue to rise, prompting renewed concern among regional stakeholders and pushing mediation efforts into a critical phase.

With relations worsening and no signs of a breakthrough, diplomatic actors are ramping up attempts to steer both sides toward dialogue and de-escalation.

Diplomatic sources say political engagement remains the only viable path to resolving the current standoff. Qatar, Türkiye, Iran, and China have all stepped in to facilitate communication, each seeking to create conditions that could pave the way for direct talks between the Islamic Emirate and Pakistan.

Iran is reportedly working to convene a dedicated regional meeting focused on jump-starting dialogue — an initiative that follows earlier mediation efforts by Qatar and Türkiye, both of which are currently on hold. China has also reiterated its support for negotiations, stating that Beijing stands ready to help ease tensions and strengthen bilateral ties.

Meanwhile, Saudi Arabia is expected to host a fresh round of talks between Kabul and Islamabad in the coming weeks. Riyadh previously facilitated discussions between delegations from both countries, though those meetings ended without tangible progress.

Analysts caution that regional diplomacy, however active, can only succeed if both Kabul and Islamabad demonstrate the political will to resolve their disputes. Effective mediation, they say, could restore stability to one of South and Central Asia’s most strained bilateral relationships — but the window for a peaceful settlement may be narrowing.

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