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CASA-1000 power line project suspended

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The CASA-1000, a $1.2 billion project to build a power line between Central Asia and South Asia has been suspended due to the economic and humanitarian crises in Afghanistan.

The project aims to allow Tajikistan and Kyrgyzstan which have an extensive network of hydroelectric power plants to sell excess energy to Afghanistan and Pakistan in the summer months.

Faizali Samiyev, the head of the Tajik project implementation office, said work on the project, originally scheduled to be completed next year, continued in three countries, but not in Afghanistan, Reuters reported.

Funding for the CASA-1000 project - which was designed to provide Pakistan with 1,000 megawatts (MW) of power and Afghanistan with 300 MW - has been suspended, Samiyev said.

“(We hope that) contacts will be established with the Afghan side and ways to implement the project will be worked out,” he said.

Abdul Latif Nazari, Afghanistan’s deputy minister of economy, said that the government will pave the way for the implementation of CASA-1000 project in Afghanistan.

The World Bank, a key CASA-1000 backer, continues financing projects in Afghanistan, but is focusing on urgently needed education, agriculture, health and family programmes and is disbursing money through United Nations agencies and international aid groups.

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Qatari and British officials discuss situation in Afghanistan

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Qatar’s Foreign Ministry said in a statement Thursday that Maryam bint Ali bin Nasser Al Misnad, Minister of State for International Cooperation, has met with British Special Representative for Afghanistan Andrew McCoubrey for talks on Afghanistan.

According to the statement, the need to strengthen bilateral cooperation in the fields of health, education and humanitarian and development projects in Afghanistan were discussed.

Qatari and British officials stressed that the meeting was testimony to the strategic commitment of the two countries in support of the people of Afghanistan.

Currently, most countries cooperate only in the humanitarian sector. Some regional countries have also forged diplomatic ties with Afghanistan.

Western countries however continue to keep their diplomatic distance.

Qatar in turn is considered as a diplomatic, economic and humanitarian supporter of Afghanistan and has hosted the Doha meeting three times.

But according to experts, these meetings have not delivered tangible results so far because the sanctions have not been lifted nor have officials of the Islamic Emirate been removed from the blacklist.

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Afghanistan’s economy shows modest growth but recovery remains fragile

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The Afghan economy is showing signs of moderate growth, but still faces significant challenges, including fiscal constraints, trade imbalances, and a limited capacity for public investment, the World Bank (WB) said Wednesday.

According to the organization’s latest Afghanistan Development Update, issued on Wednesday, “Afghanistan’s economic recovery remains uncertain”.

Modest GDP growth of 2.7%, driven by private consumption, has recouped only about 10% of past economic losses, indicative of the slow and fragile nature of the recovery, the WB said.

According to the organization, this level of growth has done little to address deeper structural issues and significant vulnerabilities within Afghanistan’s economy.

“Enabling women’s participation in the economy, strengthening domestic resource mobilization, maintaining price stability, and addressing critical deficits in human capital - particularly in education and healthcare, and especially for women - will be essential for long-term recovery and reducing vulnerability to future shocks,” the WB said in a statement.

Faris Hadad-Zervos, World Bank Country Director for Afghanistan said: “Afghanistan's long-term growth prospects depend on tapping into the substantial potential of the domestic private sector and improving the overall business environment.

“Key to this is increased investment, providing access to finance to small businesses, and supporting educated and skilled women entrepreneurs so their businesses can thrive. Without this, the country risks prolonged stagnation with limited prospects for sustainable development,” he said.

Meanwhile, the partial recovery, coupled with falling food prices, has contributed to a gradual improvement in household welfare.

But most Afghan households continue to struggle to meet basic needs and poverty remains widespread.

“Vulnerable groups, including women, children, and displaced populations, continue to bear the brunt of the economic hardship, due to the lack of social protection mechanisms,” the WB stated.

In addition, Afghanistan’s trade dynamics remain a significant challenge.

In 2023-24, the country’s exports remained stable, but imports surged, leading to a widening trade deficit, the WB reported.

The appreciation of the afghani (AFN) made imports cheaper, fueling demand for foreign goods, while domestic industrial activity revived, increasing the need for imported inputs.

However, the trade deficit, exacerbated by Afghanistan’s reliance on imports for essential goods like fuel, food, and machinery, might pose a risk to the country’s economic stability, the organization stated.

Meanwhile, Deputy Minister of Economy Abdul Latif Nazari said that Afghanistan's economy has a clear outlook and the current problems are caused by sanctions and the freezing of the country's foreign exchange reserves.

“Afghanistan's economic outlook is bright and hopeful. Some of the economic problems that exist are due to sanctions, banking restrictions and the freezing of assets of the Afghan people,” Nazari added.

“Our effort is to free the property of the people of Afghanistan as soon as possible and use it in line with the economic growth and development of the country.”

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Russia delivers 28 tons of aid to the people of Afghanistan

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An Il-76 plane from the Russian emergencies ministry delivered another batch of humanitarian aid for the people of Afghanistan this week, the ministry’s press service told TASS.

"The ministry’s special flight delivered the fifth batch of humanitarian aid for the population of the Islamic Republic of Afghanistan. Russian rescuers handed over a total of 28 metric tons of humanitarian cargo, namely food," the ministry said.

The humanitarian delivery was carried out in accordance with Russian President Vladimir Putin’s decree and instructions issued by Emergency Situations Minister Alexander Kurenkov.

Russia has sent 1,200 tons of humanitarian aid to Afghanistan in the past 12 months.

 

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