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World Bank: Afghanistan’s economic growth too weak to improve living standards

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Afghanistan’s economy continued to grow modestly in June 2026, supported by resilient domestic demand, stable prices and stronger revenue collection, but the pace of growth remains insufficient to improve living standards, according to the World Bank’s latest Afghanistan Economic Monitor.

The report said economic growth has failed to keep pace with rapid population growth, driven in part by the return of millions of Afghans, resulting in a 5.6% decline in per capita income and mounting pressure on household welfare.

Headline inflation eased to 7.6% in June from 8.0% in May, as food prices fell with the start of the domestic harvest season and continued imports. However, core inflation rose to 8.3%, reflecting persistent pressures from housing and healthcare costs.

The World Bank said the Afghan currency depreciated modestly to AFN 64.4 per U.S. dollar in June, although it remained stronger than a year earlier. It noted that improved inflation differentials with neighboring countries enhanced Afghanistan’s external price competitiveness.

The report also highlighted continued disruptions to regional trade caused by the closure of key Durand Line crossings with Pakistan and geopolitical tensions in the Middle East. While businesses increasingly relied on Central Asian transit routes, Afghanistan’s trade deficit widened 11% from the previous month and 19% year-on-year to $984.3 million in June.

Exports totaled $77.7 million in June, down 2% from May but up 19% compared with a year earlier. Textile exports surged 304% year-on-year, while food exports declined month-on-month and coal exports remained negligible. India remained Afghanistan’s largest export destination, accounting for 33.6% of total exports.

Imports rose to $1.06 billion, up 10% from May and 19% from a year earlier, driven by stronger demand and a shift toward Central Asian transit corridors, which accounted for 48% of imports. Iran remained Afghanistan’s largest import source, supplying 31% of total imports.

On public finances, domestic revenue reached AFN 17.3 billion in June, down from the previous month but 8.7% higher for the fiscal year to date, supported by improved tax administration and higher non-tax revenues. Public expenditure declined to AFN 17.5 billion, while the fiscal position remained in surplus as spending continued to be limited by available domestic revenues.

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Economic Commission approves 66 draft national standards

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Afghanistan’s Economic Commission has approved 66 draft national standards and testing methods covering a wide range of agricultural, industrial and commercial sectors.

The commission, chaired by Deputy Prime Minister for Economic Affairs Mullah Abdul Ghani Baradar, approved 36 national standards and 30 testing methods following discussions and a review of the proposals, according to a statement from the Office of the Prime Minister.

The approved standards cover areas including agricultural products, food, medicines, textiles, chemicals and plastics, telecommunications and electricity, mining, construction materials and environmental protection, among other sectors.

The move is aimed at establishing clearer standards and testing procedures across key areas of production and trade, helping to provide a common framework for assessing the quality and safety of products.

The commission also discussed the ownership and management of coal unloading, loading, processing and packaging facilities in Paktia, Paktika, Khost, Kandahar and Nangarhar provinces.

Following a comprehensive assessment, the commission decided that the facilities would fall under the Ministry of Transport and Civil Aviation, which will oversee their operations.

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Petition filed in Islamabad High Court against PMDC directive affecting Afghan students

The move comes as Afghan medical students continue to challenge PMDC directives that could affect their ability to continue their studies in Pakistan.

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A petition has been filed in the Islamabad High Court challenging a recent notification issued by the Pakistan Medical and Dental Council (PMDC) that affects Afghan students studying at medical institutions in Pakistan.

The petition was submitted on behalf of Afghan students by Islami Jamiat-e-Talaba (IJT), which said it is seeking legal relief for students impacted by the directive.

According to a statement issued on Tuesday, IJT chief Sahibzada Waseem Haider visited the Islamabad High Court alongside Afghan students from the Federal Medical College in Islamabad and IJT Islamabad chief Hashir Abbasi. Legal representation is being provided by Advocate Imran Shafiq and his team.

The move comes as Afghan medical students continue to challenge PMDC directives that could affect their ability to continue their studies in Pakistan.

Earlier, the Lahore High Court and the Sindh High Court granted interim relief to Afghan students through stay orders, temporarily preventing the implementation of measures affecting students enrolled in institutions across Punjab and Sindh.

“We remain hopeful that, following a detailed hearing, the students’ academic future will be safeguarded and the PMDC’s unjust notification will be reviewed,” Haider said in the statement.

He added that IJT has actively supported Afghan students and organised solidarity demonstrations at medical and dental colleges across Pakistan.

The issue has sparked concern among Afghan students studying in Pakistan, many of whom are enrolled in advanced years of their medical education and fear that changes to regulations could disrupt their studies and future careers.

The Islamabad High Court is expected to consider the petition and determine whether relief should be granted to the affected students while the case proceeds.

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At least 17 Afghan migrants reportedly die of thirst near Iran border

Videos released by the group show people digging several graves at an unidentified location.

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At least 17 Afghan migrants, including women and children, have reportedly died from severe thirst near Saravan in southeastern Iran, according to the human rights group HalVash.

The incident reportedly occurred on Thursday, September 10, in the Mak-Sukhteh area of Rutak, Saravan County. HalVash said the victims’ bodies were later transferred to a morgue in the nearby city of Khash.

Videos released by the group show people digging several graves at an unidentified location.

HalVash reported that five of the victims were members of a family from Afghanistan’s Baghlan province. They included a 45-year-old mother and her four daughters, aged 22, 18, 16 and 14. Relatives of the family live in Saravan, and a funeral prayer was expected to be held Sunday.

According to HalVash, at least six other victims were children under the age of 14.

Witnesses and relatives told the group that the migrants ran critically short of water during their journey and died of thirst. Some reportedly died within a short distance of one another.

A relative said the men travelling with the group separated from the women and children during the journey, leaving the women and children to continue without adequate access to water.

Local sources said the bodies were transferred to Khash because the Saravan morgue lacked sufficient capacity.

Four days after the incident, relatives were reportedly still working to arrange the transfer and burial of the victims.

HalVash cautioned that it could not independently verify the exact number of deaths or all details surrounding the incident. The identities of the remaining victims and the circumstances of their deaths were still under investigation.

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