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UN chief urges action to prevent economic collapse in Afghanistan

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UN Secretary General Antonio Guterres on Saturday called on the international community to urgently inject some cash into Afghanistan, saying it would be disastrous if the country’s economy collapsed.

In an interview with Al Jazeera, Guterres said currently “millions and millions of people (are) on the verge of dying because of hunger”.

Should the economy collapse, “it would be a total disaster; it would be lots of people dying and I believe a massive outflow into the neighboring countries with horrible consequences for the stability of those countries, so I think it’s very important to avoid that collapse.

“I’ve been saying that humanitarian aid is essential but at the same time it’s necessary, and of course there are ways to do so even in respect for international law, it’s essential to inject some cash to allow the Afghan economy to breathe and to avoid the kind of collapse that would have devastating consequences,” he said.

Guterres’ statement comes amid a cash flow crisis in Afghanistan. Essentially a dollarized nation under the former government, weekly shipments of US dollars stopped the day the Islamic Emirate took over Kabul – on August 15.

Since then, severe weekly limits have been imposed by banks on cash withdrawals for individuals, foreign reserves have been frozen, and the International Monetary Fund and World Bank also stopped loans.

Guterres said: “It’s our duty to do everything possible to support the Afghan people and to help create the conditions for those concerns that everybody has about terrorism, about human rights, about inclusivity, to materialize.”

He also stated that the “situation is unpredictable” but added the UN is working with the Islamic Emirate to allow for humanitarian aid to be distributed to the people.

He said that is would be a “disaster if terrorist organizations could operate again from Afghanistan.”

Guterres also noted that it was important for the Islamic Emirate to “understand the importance of an inclusive government that takes into account the diversity of the different groups [in the country]” and to respect basic human rights.

Asked about what he thought went wrong in Afghanistan, Guterres said the first problem was the “idea that the Afghan people can be ruled from outside.”

He said the British and the former Soviet Union had both tried to do this in the past, but both had failed.

The Afghan people are “very proud and they have lots of problems among themselves but they have even more problems with the idea that they can be dominated from the outside”, he said.

He also said he felt there had been too much “military action and not enough support to building institutions.”

According to him, the former Afghan leaders were divided – singling out the two past elections that had both been contested.

He said the election system adopted for Afghanistan “that was a unitary system was not the most adequate for a country that is so decentralized”.

“The truth is that there was a huge dysfunctionality in the government and we have seen it in relations of the president; and the international community looked at it without any capacity to really allow things to improve and so all these fragilities accumulated and in the end what we had, and we had it in a very chaotic way that nobody was forecasting.

“I don’t know what’s going to happen; as I said the situation is unpredictable but i think that there is at least a part of the leadership of the Taliban (Islamic Emirate) that would like to have Afghanistan as a country recognized by the international community and would be ready to pay a price for that,” he said.

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Kabul and Moscow ink five MoUs on trade, transit and energy

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The Economic Deputy Office of the Prime Minister said on Friday that Mullah Abdul Ghani Baradar and Russian Deputy Prime Minister Alexei Overchuk signed five memoranda of understanding in various sectors on the sidelines of the 16th Kazan International Economic Forum.

According to a statement from the PM’s office, these agreements were signed on Friday after the Afghanistan–Russia Business Forum held in Kazan, Republic of Tatarstan.

“The agreements cover cooperation between Afghanistan’s Ministry of Transport and Aviation and the Ministry of Transport of the Russian Federation in the areas of transport and transit; expansion of trade relations between the chambers of commerce of both countries; cooperation between several major private companies of the two countries in the exploration, extraction, and refining of oil and gas in Afghanistan; and the development of regional trade and the establishment of an industrial-logistical complex,” the statement read.

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Afghanistan–Russia first business forum inaugurated

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Deputy Prime Minister for Economic Affairs of Afghanistan Mullah Abdul Ghani Baradar and Russian Deputy Prime Minister Alexei Overchuk on Friday officially inaugurated the first Afghanistan–Russia Business Forum on the sidelines of the 16th Kazan International Economic Forum.

According to a statement issued by the deputy PM’s office, Abdul Ghani Baradar stated that since the Islamic Emirate’s takeover, Afghanistan has achieved political stability, expanded its economic activities, increased trade, and attracted investments from both domestic and international investors across various sectors. He noted that numerous large and small-scale projects have been launched for the country’s reconstruction, being implemented by both domestic and foreign companies in coordination with IEA.

Baradar emphasized that alongside the launch of infrastructure projects, IEA has also prioritized trade expansion and seeks to facilitate the export of Afghan products to regional and distant countries. He highlighted Russia as a strong potential market for Afghan goods and called for the establishment of favorable conditions for trade.

He further stated that IEA is ready to construct the second Salang Tunnel to promote trade and transit with Russia and Central Asia and requested cooperation from the Russian Federation in this regard, considering its relevant expertise.

Baradar also reiterated Afghanistan’s interest in participating in the North–South Corridor and stressed the importance of the Afghan–Trans project, calling for Russia’s cooperation in initiating and implementing it.

He added, “We are eager for Afghanistan to play an effective role in strengthening this corridor and contributing to regional economic connectivity.”

Meanwhile, Russian Deputy Prime Minister Alexei Overchuk expressed Russia’s support for a stable and developing Afghanistan, noting that such progress is in the interest of the entire region.

He stated that Afghanistan is moving in a positive direction and the participation of a high-level delegation from the Islamic Emirate in the 16th Kazan Forum demonstrates the Afghan people’s desire to live in peace and advance economic matters in a peaceful environment.

He further noted that Russian companies are ready to cooperate with Afghanistan in areas such as mining, construction of water dams, electricity generation, railway expansion, manufacturing of transport equipment, regional connectivity, and trade growth.

Overchuk added that a cooperation agreement has been signed for the establishment of a joint trade center between Moscow and Kabul. He expressed hope that the center would create new avenues for bilateral cooperation and effective utilization of existing opportunities.

The opening ceremony was also attended by the Deputy PM and the Minister of Industry and Trade of Tatarstan. The Deputy PM of Tatarstan stated that Tatar automotive companies are ready to operate in Afghanistan and that Tatarstan is prepared to sign an intergovernmental cooperation agreement with Afghanistan in this field.

It is expected that, on the sidelines of the 16th Kazan Forum, major agreements will be signed between Afghan and Russian traders to boost trade between Kabul and Moscow.

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Feasibility study of trans-Afghan railway to be ready in early 2026: Russian deputy PM

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A feasibility study of the trans-Afghan railway is due to be ready early next year, Russian Deputy Prime Minister Alexei Overchuk said at the 16th international economic forum Russia – Islamic World: KazanForum 2025.

“Russian and Uzbek railway specialists are drafting the feasibility study of the trans-Afghan railway construction project together. We are expecting the project feasibility study to be ready in early 2026 so that decisions on its implementation could be made,” Overchuk said, Interfax reported.

The trans-Afghan transport corridor will connect to the European Union, Russia, Uzbekistan, Afghanistan, Pakistan, India and Southeast Asia. Uzbekistan said in 2023 it had reached an agreement with a number of countries to implement the project, key participants in which, besides Uzbekistan, would be Afghanistan and Pakistan. A preliminary agreement on Russia’s participation in the project was reached in early April 2024, during Uzbek President Shavkat Mirziyoyev’s visit to Moscow.

Afghanistan, Uzbekistan and Pakistan signed an agreement in February 2021 to construct a 573-kilometer railway line through Afghanistan, connecting landlocked Central Asia to Pakistan seaports.

The Uzbek Transport Ministry said earlier it would take at least five years to build the trans-Afghan railway, the tentative cost of which might reach $4.8 billion.

Russian First Deputy Prime Minister Denis Manturov told Interfax in April that roughly 8 million to 15 million tonnes of Russian cargo might be annually transported by the prospective trans-Afghan railway.

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