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Cash-strapped government puts new projects on hold

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Afghanistan’s Ministry of Finance (MoF) has informed all government departments they need to cut back on budget spend, including that on planned development projects.

In an official notice to all government institutions, MoF has ordered them to stop projects where contracts have recently been signed, and which employ contract workers.

All planned development projects have also been put on hold.

The MoF said that due to the increase in spend for the Afghan National Defense and Security Forces (ANDSF), the increase in health spend and a drop in government income, all government departments need to cut expenditure.

“After the assessment of the development and general budgets by the cabinet, changes have been brought to the ministries and all government budgets because of the increase in ANDSF and health spending. Contracts from the… budget should be halted or suspended,” read the notice.

The MoF said that the government has lost $33 million in customs revenue since the Taliban seized five border crossings in the past month, amid rising violence in the country.

“Sher Khan port in Kunduz, Spin Boldak in Kandahar, Islam Qala in Herat, Abu Nasr Farahi in Farah and Torghundi in Herat have been captured by Taliban in the past month,“said Rafi Tabi, spokesman for the MoF.

Analysts have said the government should consider other steps to cut back on budget spend.

“In this situation, we can’t blame government, but it (government) should consider other options to prevent confusing the public,” said Sayed Massoud, a university lecturer.

This comes after the projected revenue generation for Afghanistan was expected to be 216 billion AFN ($2.7 billion) for the current solar year.

The total 452.6 billion AFN budget for this year did however carry a 37 billion AFN deficit – which government was to provide 20 billion AFN from internal resources and 17 billion AFN was pledged by the International Monetary Fund (IMF) in order to make up the difference.

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‘Made in Afghanistan’ expo opens in Tashkent

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The Afghanistan Chamber of Commerce and Investment has announced that a major exhibition of Afghan products titled “Made in Afghanistan” is opening today (Wednesday) in Uzbekistan’s capital Tashkent.

According to the chamber, the expo—supported financially by the United Nations Development Programme—will run until Friday and aims to showcase Afghanistan’s production and export potential.

More than 60 booths have been set up by Afghan traders, featuring a wide range of products including carpets, dried and fresh fruits, saffron, pine nuts, cotton, precious and semi-precious stones, as well as beverages.

Officials from the chamber expressed hope that the expo will help expand trade relations between Afghanistan and countries in the region, particularly Uzbekistan.

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Afghani strengthens nearly 10% against US dollar amid banking sector reforms

The bank said it has expanded oversight of financial institutions and private lenders, improving transparency and promoting more consistent standards across the sector.

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Afghanistan’s central bank, Da Afghanistan Bank, says the national currency has appreciated by 9.93% against the US dollar during the year 1404, citing steady progress in the country’s financial and banking systems.

Officials attributed the gains to cautious monetary policies that have helped stabilise the Afghani against major global currencies while also boosting its value against the dollar.

The bank said it has expanded oversight of financial institutions and private lenders, improving transparency and promoting more consistent standards across the sector.

As part of efforts to better manage liquidity, authorities also collected and destroyed worn-out banknotes in circulation. At the same time, officials reported growth in electronic banking, with digital payment usage rising in recent months.

Central bank spokesperson Haseebullah Noori said initiatives are underway to broaden access to banking services nationwide, including the wider rollout of Islamic banking options.

Analysts welcomed the stabilisation efforts but stressed the need to address ongoing challenges facing domestic banks, including the impact of international financial sanctions on Afghanistan.

They added that expanding Islamic banking could help draw more savings into the formal financial system, noting that a significant share of personal wealth remains outside banks. Bringing those funds into the sector, they said, could inject billions of Afghanis into the economy and further support financial stability.

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Uzbekistan delivers over 290 tons of aid to Afghanistan

The assistance, provided ahead of Eid al-Fitr, is intended to support vulnerable communities while reinforcing ties between the neighboring countries.

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Uzbekistan has delivered more than 290 tons of humanitarian aid to Afghanistan, according to the country’s Ministry of Foreign Affairs.

The assistance, provided ahead of Eid al-Fitr, is intended to support vulnerable communities while reinforcing ties between the neighboring countries.

The shipment includes essential food supplies such as flour, rice, wheat, vegetable oil, instant meals, pasta, and confectionery. An official handover ceremony was held in the border town of Hairatan.

Local officials, including Balkh province representatives and authorities from Hairatan, expressed appreciation for the continued support, acknowledging Uzbekistan’s efforts to assist the Afghan people.

Among those present at the ceremony were Uzbekistan’s Ambassador to Afghanistan, Oybek Usmanov, and Surkhandarya regional governor Ulugbek Kosimov.

The aid delivery underscores Uzbekistan’s ongoing humanitarian engagement and its broader efforts to promote regional cooperation and stability.

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