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Outlook for Afghan economy ‘dire’ as household incomes shrink: World Bank
The outlook for Afghanistan’s economy is dire with per capita income having fallen by over a third in the last four months of 2021 after the Islamic Emirate of Afghanistan (IEA) seized power and foreign forces withdrew, the World Bank said on Wednesday.
“One of the poorest countries in the world has become much poorer,” said Tobias Haque, World Bank Senior Country Economist for Afghanistan.
“The isolation of the Afghan economy following last August’s political crisis risks…leading to grave poverty, displacement, fragility, and extremism threats,” he told a briefing for the release of the World Bank’s first development update on the country since August Reuters reported.
The IEA takeover prompted foreign governments, led by the United States, to cut development and security aid, and the strict enforcement of sanctions has debilitated the country’s banking sector.
The World Bank update said that incomes had dropped so starkly that around 37% of Afghan households did not have enough money to cover food while 33% could afford food but nothing more, Reuters reported.
An IEA failure to meet Western conditions, in particular access to education for all girls, has led the international community to withhold international assistance and keep financial sanctions in place, with exceptions for humanitarian aid.
“Under current conditions, the outlook for Afghanistan’s economy is dire,” the World Bank said in a statement accompanying the update.
If current conditions continued, the World Bank predicted, Afghanistan’s real gross domestic produce (GDP) per capita would decline by around 34% between the end of 2020 and the end of 2022, reversing all progress since 2007.
The United States cancelled planned meetings in March, some of which would have included the World Bank, to discuss key economic issues after the IEA sent all high school-aged girls home after they had arrived ready for classes.
The U-turn angered donors, foreign governments and many Afghans as IEA officials had previously said they were opening all schools.
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Karzai condemns Pakistani airstrikes on Kunar and Helmand
In a statement, Karzai expressed condolences to the families of those killed and wished a swift recovery to those injured.
Former Afghan President Hamid Karzai has strongly condemned recent Pakistani airstrikes on residential areas in Kunar and Helmand provinces, saying the attacks resulted in civilian casualties, including women and children.
In a statement, Karzai expressed condolences to the families of those killed and wished a swift recovery to those injured.
Karzai described the actions by Pakistani forces as a violation of Afghanistan’s sovereignty and territorial integrity, stressing that Afghans would stand united in defending their country against foreign aggression.
He also called on Pakistan’s leaders to review what he described as confrontational and hostile policies toward Afghanistan, urging Islamabad to avoid actions that harm Afghan civilians.
Karzai further called for an end to the promotion of extremism and division, and urged Pakistan to engage with Afghanistan on the basis of good-neighborly relations and civilized cooperation.
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Moscow to host 8th meeting of Afghanistan consultations on October 5
Russian Foreign Minister Sergey Lavrov is expected to address the participants during the consultations.
The eighth round of the Moscow Format consultations on Afghanistan will be held in Moscow on October 5, Russian Foreign Ministry spokesperson Maria Zakharova said Wednesday.
The meeting will bring together special representatives and senior officials from Afghanistan, Russia, China, Iran, India, Pakistan, Kazakhstan, Kyrgyzstan, Tajikistan and Uzbekistan.
Belarus and Egypt have also been invited to participate as guest countries, Zakharova said during a briefing.
Russian Foreign Minister Sergey Lavrov is expected to address the participants during the consultations.
According to Zakharova, the Afghan delegation will be led by Afghanistan’s foreign minister, who is also scheduled to hold a separate meeting with Lavrov on the sidelines of the event.
The bilateral talks are expected to focus on current issues related to cooperation between Russia and Afghanistan.
At the broader consultations, participants are expected to discuss political and economic cooperation between Afghanistan and regional countries, as well as efforts to strengthen regional cooperation in combating terrorism and drug trafficking.
A joint statement is expected to be adopted at the conclusion of the meeting, Zakharova said.
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Da Afghanistan Bank reports increase in public bank deposits
Da Afghanistan Bank (DAB) says public deposits in the country’s banks have increased this year, with significant progress also recorded in the banking sector.
Sediqullah Khalid, First Deputy Governor of DAB, made the remarks at a meeting of the bank’s Supreme Council, saying the increase in deposits reflects greater stability in the banking sector and increased public confidence in the country’s banking system.
The meeting discussed the country’s monetary policies, the current condition of the banking sector, the development of Islamic banking, the expansion of electronic banking, and broader public access to financial services.
Khalid emphasized the implementation of effective monetary policies, assessment of the banking sector, continued efforts to develop Islamic banking, expansion of electronic banking, and improving public access to financial services.
He also highlighted the stability of the Afghan afghani, saying that despite global economic challenges, the currency had maintained its stability over the past year compared with many regional and international currencies.
According to Khalid, the stability of the afghani reflects the effectiveness of DAB’s well-calibrated and targeted monetary policies.
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