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IEA’s finances in much better shape: The Economist
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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6.1-magnitude earthquake hits Afghanistan, epicenter in Badakhshan
A 6.1-magnitude earthquake struck Afghanistan on Saturday afternoon, according to the United States Geological Survey (USGS).
The quake’s epicenter was reported in Jurm district of Badakhshan province, with a depth of 208.3 kilometers.
So far, there have been no immediate reports of casualties or damage following the tremor.
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Delawar says Afghanistan has achieved security and unity after 47 years
Shahabuddin Delawar, Head of the Commission for Contact with Afghan Personalities, says Afghanistan has achieved security, unified governance, brotherhood, and progress for the first time in 47 years under the administration of the Islamic Emirate of Afghanistan (IEA).
Speaking at a meeting in Kabul on Saturday, Delawar said Afghanistan had lacked a unified system over the past four decades, but added that with the return of the Islamic Emirate, the issue has now been resolved.
Referring to Ashura commemorations held on Friday, he said the occasion was observed peacefully across the country under full security.
Delawar also urged exiled Afghan politicians to return, saying the commission was established to serve Afghans and address the concerns of returning figures. He added that any legal disputes involving returnees would be handled exclusively through the commission.
He further said the Islamic Emirate has expanded treatment centers and intensified anti-narcotics efforts since regaining power, claiming this has led to a significant decline in drug addiction.
Addressing the issue of international legitimacy, Delawar said he understood why the United States has not recognized the Islamic Emirate, arguing that Washington suffered a defeat in Afghanistan that it cannot easily overlook.
“They have suffered a major defeat that they cannot forget; if they recognize us, they will face questions from their own people,” Delawar said.
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EU announces major funding to support Afghan small businesses
The European Union says it is implementing hundreds of millions of euros in projects to support small and medium-sized enterprises (SMEs) in Afghanistan and help expand economic opportunities across the country.
Speaking to Ariana News, EU Chargé d’Affaires in Kabul, Veronika Boskovic Pohar, said the programs are aimed at creating jobs for skilled workers, women, youth, and returnees, while also strengthening the private sector. She added that alongside international support, Afghan authorities also have a role in facilitating economic growth.
According to Pohar, the EU is currently implementing projects worth €156 million focused on livelihoods, durable solutions, job creation, and women’s economic empowerment. She said an additional €40 million program specifically designed to support returnees will be launched in the near future.
She noted that the EU is gradually shifting its focus from emergency humanitarian aid toward long-term sustainable solutions, particularly for internally displaced people and returnees in Afghanistan.
Meanwhile, the United Nations, marking World Day of Small and Medium Enterprises, said SMEs account for more than 90 percent of businesses worldwide and play a critical role in employment and economic growth.
UN spokesperson Stéphane Dujarric stressed that stronger investment, innovation, and sustainable industrial development are essential to help businesses withstand economic challenges and build resilient economies.
Afghan private sector representatives and economic analysts say greater support for SMEs could help the country address economic challenges faster, increase employment, and promote sustainable long-term development.
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