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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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Ministries of Public Health and Higher Education sign cooperation agreement

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The Ministry of Public Health announced on Tuesday it has signed a cooperation agreement with the Ministry of Higher Education aimed at expanding scientific, research, educational, and technical cooperation.

At the signing ceremony held in Kabul, Noor Jalal Jalali, Minister of Public Health, said that the agreement would lead to significant improvements in the capacity-building of students and doctors, ensure that research is conducted based on evidence, and enable the collection of accurate data.

Meanwhile, Neda Mohammad Nadeem, Minister of Higher Education, described the agreement as beneficial to the public and to both institutions, stressing the need to train individuals at universities who can contribute to social development and make the country self-sufficient in the public health sector.

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UNAMA holds new round of Working Group meetings on counter-narcotics and private sector

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The United Nations Assistance Mission in Afghanistan (UNAMA) has convened a new round of Doha Process Working Group meetings focusing on counter-narcotics and private sector development.

The meetings, held in Kabul on February 3 and 9, brought together representatives of UN member states and international organizations, officials of the Islamic Emirate, and subject-matter experts.

According to UNAMA, discussions in the counter-narcotics working group centered on efforts by Islamic Emirate authorities and the international community to support alternative livelihoods for Afghans previously dependent on poppy cultivation and the illicit opium trade. Participants also reviewed drug-use prevention and treatment initiatives, as well as law-enforcement measures to curb narcotics production and trafficking.

The private sector working group focused on job creation and entrepreneurship, with particular attention to women’s participation in the private sector, market integration, access to finance, and the development of private banking and financial infrastructure.

UNAMA said both working groups identified priority areas for enhanced engagement and explored more effective and sustainable approaches to supporting Afghan men and women. Participants also examined the linkages between the two areas, noting that private sector development is a key source of livelihoods, while counter-narcotics efforts contribute to Afghanistan’s economic and social stability.

The working groups were established following the third Meeting of Special Envoys held in Doha, Qatar, in June and July 2024, in line with recommendations of the Independent Assessment endorsed by the UN Security Council. The process aims to promote more coherent, coordinated, and structured engagement with Afghanistan’s de facto authorities for the benefit of the Afghan people.

UNAMA added that stakeholders engage in the working groups on an ongoing basis, with full-format meetings convened periodically. Since their establishment, the groups have improved information-sharing, helped mobilize additional resources, and facilitated expert exchanges to strengthen support for the Afghan people.

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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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