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Global partners strengthen Afghan Islamic finance sector

Since 2024, more than 120 officials from Da Afghanistan Bank, commercial banks, and microfinance institutions have received certifications in areas such as Shari’ah compliance, Islamic accounting, and financial reporting.

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The United Nations Development Programme (UNDP), the Islamic Development Bank Institute (IsDBI), and the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) are scaling up efforts to strengthen Afghanistan’s financial sector through Islamic finance training and the adoption of international standards.

The partnership, part of the Global Islamic Finance and Impact Investing Platform (GIFIIP) launched by UNDP and IsDB in 2016, seeks to build resilience in Afghanistan’s fragile economy by positioning Islamic finance as a driver for sustainable development.

Since 2024, more than 120 officials from Da Afghanistan Bank, commercial banks, and microfinance institutions have received certifications in areas such as Shari’ah compliance, Islamic accounting, and financial reporting.

Training has included AAOIFI’s flagship programs—Certified Shari’ah Advisor & Auditor (CSAA), Certified Islamic Professional Accountant (CIPA), and others—alongside workshops on ethics, governance, and technical standards.

“These certifications are equipping Afghanistan’s financial sector with qualified professionals in Shari’ah compliance and financial reporting, ensuring alignment with global best practices,” the partners said in a joint statement.

By broadening institutional capacity and strengthening cross-border cooperation, the initiative aims to create a more inclusive financial system capable of supporting long-term growth.

Afghanistan’s banking sector has been under severe strain since the Islamic Emirate’s takeover in 2021, with international sanctions cutting off most external financing and foreign reserves.

Restrictions on the central bank have left commercial banks struggling with liquidity shortages, limited access to correspondent banking, and reduced public trust.

Within this constrained environment, Islamic finance is seen as a potential pathway to keep the sector functional, attract regional investment, and provide alternative tools for economic recovery.

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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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