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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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Tahawol: UNSC’s periodic meeting on Afghanistan discussed

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Muttaqi: Afghanistan’s progress requires both religious and modern education

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Afghanistan’s Foreign Minister, Amir Khan Muttaqi, says the country’s future development depends on strengthening knowledge in both religious education and modern scientific fields.

Speaking at a graduation ceremony for Huffaz at Riyaz-ul-Uloom on Thursday, Muttaqi said the foundations of learning in Afghanistan are “growing stronger each day,” noting progress in both religious seminaries and contemporary academic disciplines.

He stressed that Afghanistan can only advance and “be freed from oppression” when its people gain expertise in both domains. The country, he said, needs not only religious scholars but also professionals such as doctors, engineers, and scientists.

Muttaqi added that the Islamic Emirate is working “day and night” to expand educational opportunities and support the development of skilled Afghans across all sectors.

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EU announces 25 million euros to boost food security and resilience in Afghanistan

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The European Union (EU) has announced a 25 million euros contribution through the United Nations World Food Programme (WFP) to strengthen community resilience and promote more nutritious diets across Afghanistan.

“The European Union’s new contribution to WFP demonstrates our continued commitment to the Afghan people, notably women, children, and vulnerable local communities,” said Veronika Boskovic-Pohar, EU Chargé d’affaires in Afghanistan. “Agriculture and food value chains must be equipped to bolster Afghans’ nutrition, health, and economic resilience. Through our integrated approach to climate resilience, we are also helping vulnerable rural communities protect their livelihoods and income against natural disasters and long-term devastating impacts of climate change.”

The funding will support WFP initiatives focused on improving food value chains and climate adaptation. Key projects include upgrading community assets such as flood protection walls and irrigation systems, reducing climate-related risks, and safeguarding productive assets essential for local economic stability.

A significant portion of the investment will build on WFP’s school meals programme, training women’s associations and youth entrepreneurs to supply fresh, fortified snacks to schoolchildren. This approach aims to stimulate local economies while creating sustainable livelihood opportunities.

John Aylieff, WFP Representative and Country Director in Afghanistan, expressed gratitude for the EU’s support, noting that the investment aims to deliver a “triple return: stronger livelihoods and resilience, more robust local food systems, and expanded opportunities for women and youth.”

 

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