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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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Russian firm eyes investment in Afghanistan’s power plants

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Russia’s Power Machines Company is interested in investing in the rehabilitation and modernization of Afghanistan’s power plants, Da Afghanistan Breshna Sherkat (DABS) said on Tuesday.

DABS Chief Executive Officer Abdul Haq Hamkar discussed the potential investment with technical officials from Power Machines, with talks focusing on rehabilitating existing power plants, modernizing equipment and expanding power-generation capacity.

According to DABS, Hamkar said the company would cooperate in facilitating preliminary technical assessments of Afghanistan’s power plants and in exploring investment opportunities in the sector.

Denis Rudakov, head of Power Machines’ commercial department, said the Russian company plans to conduct preliminary technical assessments of existing power plants in Afghanistan.

Based on the findings, Power Machines will prepare proposals for rehabilitating facilities, modernizing equipment and increasing electricity-generation capacity, DABS said.

Afghanistan currently has several operational power plants, while efforts are underway to increase their generation capacity and upgrade their equipment, according to DABS.

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IEA denies it is holding Afghan-American Mahmood Shah Habibi

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Zabihullah Mujahid, spokesman for the Islamic Emirate of Afghanistan (IEA), on Tuesday denied that IEA authorities detained Mahmood Shah Habibi, an Afghan-American businessman the US claims disappeared in Kabul four years ago.

“We have no information about Mahmood Shah Habibi. He is not with the Islamic Emirate of Afghanistan. If he were, this issue would have been resolved long ago,” Mujahid said.

His remarks came a day after the FBI marked the fourth anniversary of Habibi’s disappearance and renewed its appeal for information about his whereabouts.

According to the FBI, Habibi disappeared near his home in Kabul on August 10, 2022. At the time, he was working as a consultant for Asia Consultancy Group, a Kabul-based telecommunications company. He had previously served as Afghanistan’s director of civil aviation.

The FBI has alleged that Habibi was detained by the IEA’s General Directorate of Intelligence.

The FBI has continued its investigation and in 2025 released a missing-persons poster for Habibi. The U.S. State Department has also offered a reward of up to $5 million for information leading to his location, recovery and return.

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Justice minister rejects claims of ethnic, religious bias in land reclamation

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Afghanistan’s Justice Minister Abdul Hakim Sharei says the reclamation of state-owned land seized by land grabbers is a legal matter and should not be linked to ethnicity, religion or language.

Sharei, who also heads the Commission for the Prevention of Land Grabbing, made the remarks at a meeting with officials and representatives of charitable organizations in Kabul.

He said the commission is legally and religiously obligated to enforce rulings issued by the special court handling cases involving seized state land. Once the court determines that a disputed plot belongs to the state, the commission must enforce the decision, he said.

Sharei said the special court bases its rulings on documents, evidence and the law, adding that legal principles must be applied equally to all parties.

The justice minister also called on charitable organizations to work toward establishing a nationwide union and to expand their activities into fundamental and infrastructure projects.

He urged charities to avoid photographing or filming people while distributing aid, saying such practices could undermine the dignity of those receiving assistance.

Representatives of charitable organizations raised concerns over taxes, customs procedures and lengthy administrative processes. The Ministry of Justice said it would work to address the issues following the establishment of a nationwide union.

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