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IEA’s finances in much better shape: The Economist

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The Islamic Emirate of Afghanistan’s (IEA) finances appear to be in much better shape than expected, The Economist magazine said in an article published Wednesday.

The British media outlet said that when the IEA seized power, it seemed obvious that they would struggle to administer a country of 40 million, especially for lack of money.

“Yet the new government’s finances appear to be in much better shape than anybody expected,” the report read.

Last month IEA announced its first full-year budget, forecasting revenues of $2.1bn.

The World Bank’s estimate is more modest but still impressive: it reckons the government will collect about $1.7bn this year (about 12% of GDP) in domestic revenue, from things like taxes, customs and fees for services.

That is nearly three-quarters of the $2.3bn the previous government raised domestically in 2020, before business and trade dried up and many taxpaying Afghans left the country.

The previous government’s total funding including foreign finance came to $5.7 billion, but IEA do not have access to the grants and loans that made up the rest.

The Economist said that the IEA managing to keep revenue flowing despite the obstacle is “remarkable.” One reason for their success is that they have plenty of experience collecting taxes, it noted.

Moreover, a handful of holdovers from the former government are maintaining sophisticated financial-management software to run their revenue-collection systems.

IEA has also cracked down on graft, a serious problem under the previous government, The Economist noted.

IEA’s Ministry of Finance welcomed the report, saying the government was seeking to make Afghanistan self-reliant.

“IEA members together with former professionals are working in a brotherhood atmosphere and with it transparency has come and revenues have increased. We have stopped corruption that unimaginably existed in the ministry of finance,” said Ahmad Wali Haqmal, a spokesman of the Finance Ministry.

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Economic Commission approves national policy for development of agriculture

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At a regular meeting of the Economic Commission chaired by Mullah Abdul Ghani Baradar, Deputy Prime Minister for Economic Affairs, the National Policy for the Development of the Agriculture and Livestock Sector was approved.

According to a statement from the deputy PM’s office, the key objectives of the policy include the mechanization of the agriculture and livestock sector; development of agricultural, irrigation, and livestock research and extension systems; management of irrigation systems; support for investment in these sectors; and ensuring public access to high-quality agricultural and animal products.

During the same meeting, the development plan for the fish farming sector was also approved.

Under this plan, through private sector investment, 7,700 small, medium, and large fish production and farming facilities will be established on 6,500 hectares of land in various parts of the country.

The statement added that the implementation of this plan will create direct employment opportunities for 50,000 people and indirect employment for 250,000 others.

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Afghan authorities prevent three forced marriages in Balkh, Kunar, and Parwan

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Officials from Afghanistan’s Ministry for Virtue and Vice successfully intervened to stop three cases of forced marriage in the provinces of Balkh, Kunar, and Parwan, protecting women’s rights under Islamic law.

The cases involved families attempting to marry off their daughters against their will. After registering and reviewing the complaints, ministry officials acted swiftly to halt the marriages.

The families were summoned and advised on the importance of respecting women’s rights and the freedom to choose a spouse. Following the intervention, they pledged that all future marriages of their daughters would occur only with the women’s full consent.

The ministry said the actions reflect its ongoing commitment to safeguarding women’s rights and enforcing Islamic principles across Afghanistan.

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Doha process private sector meeting highlights growth and coordination in Afghanistan

The session was divided into two segments, focusing on growth and inclusion in the first part, and coordination and transparency in the second.

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The 3rd session of the Doha Process Private Sector Working Group was held both in-person and online at Kabul’s Grand Hotel, hosted by the United Nations Assistance Mission in Afghanistan (UNAMA).

The meeting brought together representatives from the Islamic Emirate of Afghanistan, including the Ministries of Foreign Affairs, Finance, Industry and Commerce, Economy, Labor and Social Affairs, and the Central Bank, alongside UNAMA, UN agencies, international and regional organizations, as well as ambassadors, diplomats, and private sector experts.

The session was divided into two segments, focusing on growth and inclusion in the first part, and coordination and transparency in the second.

Afghanistan’s Islamic Emirate representatives shared achievements and progress since assuming governance, while participants acknowledged these efforts and highlighted their ongoing support for the private sector. All parties offered recommendations to address challenges and emphasized enhanced cooperation moving forward.

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