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Afghanistan’s Central Bank working to shift economy from cash to cards

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Da Afghanistan Bank (DAB), the country’s central bank, says it is stepping up efforts to reduce Afghanistan’s dependence on cash by promoting the use of electronic payment systems—including bank cards and automated machines—as part of a broader financial modernization agenda.

DAB spokesperson Hasibullah Noori announced that systems are being designed to enable users to carry out transactions through all types of automated payment technologies, a move aimed at improving transaction speed and reducing physical currency degradation.

People will be able to use electronic cards for their financial transactions, Noori said, adding that this will help reduce the wear and tear of paper money and also improve transaction efficiency.

The initiative, while modest in scope so far, signals the central bank’s intention to shift Afghanistan’s heavily cash-based economy toward a more digitally enabled financial ecosystem.

Afghanistan remains one of the most cash-reliant economies in the world, with the vast majority of daily personal and commercial transactions conducted using physical currency. This dependency is driven by multiple longstanding challenges including limited banking penetration, particularly in rural areas where over 70% of Afghans live.

International isolation and sanctions since the Islamic Emirate’s return to power in August 2021 have also led to increased challenges as Afghanistan deals with restricted access to the global banking system, frozen assets, and a reliance on informal transfer networks like hawala for both private and humanitarian finance.

Although DAB is promoting the use of electronic cards, many experts argue the supporting infrastructure is virtually nonexistent in most areas. Outside of Kabul and a few provincial capitals, point-of-sale (POS) terminals, card readers, and payment networks are rare.

Additionally, many of the cards currently in circulation are linked to limited-use payroll accounts for civil servants or NGO employees and are not widely accepted in markets, transport systems, or shops.

Economic analysts say however that before pushing digital payments, the central bank must invest in foundational infrastructure, including mobile banking systems, merchant acceptance networks, and public financial education.

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Baradar urges scholars to promote protection of Islamic system and national interests

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Mullah Abdul Ghani Baradar, Deputy Prime Minister for Economic Affairs, has called on religious scholars to play a stronger role in promoting the protection of the Islamic system and Afghanistan’s national interests among the public.

Speaking at a turban-tying ceremony at Jamia Fath al-Uloom in Kabul on Wednesday, Baradar urged scholars to adopt a softer tone in their sermons and public addresses.

He said that alongside teaching religious obligations, scholars should help foster a sense of responsibility toward safeguarding the Islamic system and national unity.

Baradar described madrasas as the sacred foundations of religious learning, moral education, spiritual and intellectual development, and Islamic movements within Muslim societies.

He noted that in Afghanistan, religious teachings and the concept of sacred jihad originated in madrasas, spread from villages to cities, and eventually translated into action and resistance.

He also emphasized the role of madrasas in the intellectual reform of society, the removal of what he described as un-Islamic cultural influences, and the preservation of Islamic traditions.

Baradar stressed that religious schools must remain committed to their original mission and values under all circumstances.

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Iran’s Bahrami invites Afghan FM Muttaqi to Tehran during Kabul meeting

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Afghanistan, Kyrgyzstan discuss expanding trade and economic cooperation

Azizi welcomed the Kyrgyz delegation and thanked them for visiting Kabul, underscoring the importance of closer economic engagement between the two countries.

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Afghanistan and Kyrgyzstan held high-level talks in Kabul aimed at strengthening bilateral economic and trade relations, officials said.

The meeting brought together Nooruddin Azizi, Minister of Industry and Commerce of the Islamic Emirate of Afghanistan, and Bakyt Sadykov, Minister of Economy and Trade of the Kyrgyz Republic, who is leading a visiting delegation to the Afghan capital.

Azizi welcomed the Kyrgyz delegation and thanked them for visiting Kabul, underscoring the importance of closer economic engagement between the two countries.

During the talks, both sides discussed ways to boost bilateral trade by making better use of existing capacities and identifying priority export commodities.

The discussions also focused on developing transit routes, signing transit agreements, attracting joint domestic and foreign investment, and expanding cooperation through trade exhibitions, business conferences and regular meetings.

The two ministers stressed the need to implement earlier agreements, particularly the economic and trade cooperation roadmap signed during a previous visit by an Afghan delegation to Kyrgyzstan.

They said effective follow-up on these commitments would be key to translating discussions into tangible results.

Officials from both countries said the meeting was intended to deepen economic, trade and investment ties, while opening new avenues for partnership between Afghanistan and Kyrgyzstan in the coming period.

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