Latest News
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.
Latest News
Afghanistan and Iran agree to expand trade cooperation and upgrade border infrastructure
Araghchi praised Afghanistan’s efforts to combat narcotics and commended the Islamic Emirate’s role in promoting economic stability in the country.
Afghanistan and Iran have agreed to strengthen economic cooperation, expand border infrastructure and improve customs operations during a meeting between their senior officials in Tehran.
According to a statement by Afghanistan’s Ministry of Finance, Minister of Finance Mohammad Nasir Akhund and his accompanying delegation met with Iranian Foreign Minister Seyed Abbas Araghchi at the Iranian Ministry of Foreign Affairs during an official visit to Iran.
The discussions focused on organizing the next meeting of the two countries’ Joint Economic Cooperation Commission, expanding border infrastructure at the Abu Nasr Farahi customs crossing and accelerating its reconstruction process.
Both sides also discussed operating customs facilities around the clock and speeding up efforts to increase the capacity of the Dogharoon, Mahirud and Milak border crossings.
According to the ministry, Araghchi praised Afghanistan’s efforts to combat narcotics and commended the Islamic Emirate’s role in promoting economic stability in the country.
The Iranian foreign minister also assured Afghanistan of Tehran’s full cooperation in economic and political affairs.
The meeting comes as Afghanistan and Iran seek to strengthen cross-border trade, improve transit facilities and expand bilateral economic relations.
Latest News
Afghanistan’s absence from ECO foreign ministers’ meeting raises questions
Afghanistan’s absence comes despite its ECO membership and its strategic geographical position as a major transit corridor linking Central Asia with South Asia and the Middle East.
The two-day meeting of foreign ministers of the Economic Cooperation Organization (ECO) began in Islamabad, Pakistan, on Sunday, without the participation of a delegation from the Islamic Emirate of Afghanistan.
Representatives from the organization’s 10 member states are discussing ways to expand economic cooperation, boost regional trade and strengthen connectivity. Pakistan, which currently holds the organization’s rotating chairmanship, has identified stronger trade and transit relations among member states as a key priority.
Afghanistan’s absence comes despite its ECO membership and its strategic geographical position as a major transit corridor linking Central Asia with South Asia and the Middle East.
Central Asian countries can use Afghanistan’s territory to access Pakistani and Iranian ports, as well as wider regional markets, making the country an important part of regional trade and connectivity initiatives.
Economic analysts say political differences should not prevent member states from pursuing economic cooperation. They warn that excluding or sidelining Afghanistan from such regional meetings could undermine ECO’s economic and transit objectives.
ECO was established in 1985 by Iran, Türkiye and Pakistan. In 1992, the organization expanded with the admission of Afghanistan and six other countries, bringing its membership to 10 states.
The combined gross domestic product of ECO member countries is estimated at around $3 trillion.
Experts say that without Afghanistan’s active participation, regional connectivity projects may struggle to achieve their full economic and transit potential.
Latest News
Turkey detains 35 Afghan migrants attempting to reach Greece
Turkish police have detained 35 Afghan migrants attempting to cross into Greece by sea in the northwestern province of Balikesir, while four suspects accused of migrant smuggling were also apprehended.
Police seized 12 life jackets, lifebuoys and three pumps during the operation.
Following police procedures, three of the four suspects were remanded in custody by a court, while the fourth was released under judicial supervision.
The 35 Afghan migrants were transferred to an Irregular Migrant Pre-Reception and Referral Center.
-
Latest News4 days agoAfghan embassy in Kuwait discusses situation of Afghan prisoners with Kuwaiti officials
-
Business4 days agoIraqi intelligence report alleges oil smuggling network supplying Afghanistan and Turkey through Iran
-
Tahawol5 days agoTahawol: Efforts to halt deportation of Afghan refugees from US discussed
-
Latest News4 days agoRussian deputy prime minister to visit Kabul with high-level economic delegation
-
Latest News3 days agoOlive farming offers new hope to Afghan farmers amid growing climate challenges
-
Latest News4 days agoAncient treasures unearthed at Kabul’s historic Bala Hissar
-
Sport4 days agoHistoric first for Rahmat Shah after ICC rankings update
-
Business2 days agoAfghanistan and Uzbekistan agree on export of 100,000 tons of Bamyan potatoes
