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UNDP warns Afghanistan’s new development strategy faces major risks
The plan targets 3–5 percent annual economic growth, a 10 percent rise in exports, $5 billion in foreign investment by 2030, and expanded infrastructure, energy and extractive industries.
The UN Development Programme (UNDP) has warned that Afghanistan’s newly launched National Development Strategy (ANDS 2025–2030) is unlikely to achieve its goals unless deep structural challenges are urgently addressed.
In an analysis of the first national development plan introduced since the Islamic Emirate of Afghanistan (IEA) returned to power in 2021, UNDP said the strategy provides an important framework for allocating scarce domestic resources in the absence of international aid.
The plan targets 3–5 percent annual economic growth, a 10 percent rise in exports, $5 billion in foreign investment by 2030, and expanded infrastructure, energy and extractive industries.
However, UNDP cautioned that overlapping crises—including lack of international recognition, a severe humanitarian situation, mass returnees and climate shocks—pose serious risks to implementation.
The agency highlighted two critical constraints: restrictions on women and energy shortages.
It noted that bans on girls’ education and limits on women’s work and mobility have slashed female economic participation, making growth and shared prosperity unattainable.
It also warned that acute energy insecurity—current electricity supply is just 0.7 gigawatts against demand of five—continues to undermine industrial development.
UNDP concluded that without reversing restrictions on women and closing the energy gap, the strategy is likely to remain aspirational rather than transformative.
The IEA meanwhile has not yet commented on this report.
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Iranian airline SAHA launches direct flights between Mazar-e-Sharif and Mashhad
Iranian airline SAHA has launched direct flights between the cities of Mazar-e-Sharif, in northern Afghanistan, and Mashhad in Iran.
Airline officials said that 135 passengers were transported between Mazar-e-Sharif and Mashhad on the inaugural flight, adding that the flights are scheduled to operate once a week.
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FAO, World Bank launch matching grants to support Afghan agribusinesses and rural jobs
Five Afghan agribusinesses have been selected as the first recipients of co-investment matching grants under a joint initiative by the Food and Agriculture Organization and the World Bank Group aimed at revitalizing Afghanistan’s agricultural economy through private sector-led growth, job creation and stronger agricultural value chains.
The grants, announced on Wednesday, will support enterprises involved in seed production, saffron, dairy, soybean processing and food manufacturing across Herat, Kapisa, Kunduz, Logar and Takhar provinces.
The selected businesses will receive financial support alongside their own co-investment contributions to expand operations, improve processing capacity, strengthen market links for farmers and create employment opportunities in rural communities. Three of the five supported enterprises are women-led.
Planned investments include a soybean oil refining line in Kapisa, solar-powered dairy operations in Takhar and saffron processing equipment in Kunduz.
Officials said the projects are expected to generate both direct and indirect jobs in production, processing, logistics and marketing.
In addition to funding, the enterprises will receive technical support through a Business Development Services provider to improve business planning, investment management, workforce development and operational growth.
The initiative is being implemented under the Emergency Food Security Project (EFSP), funded by the World Bank and managed by the FAO. The matching grant scheme is designed to strengthen the role of Afghan small and medium-sized agribusinesses in driving rural economic growth, creating jobs and improving agricultural value chains.
The first five businesses are being supported under the program’s Window 1 category, which focuses on women-led and early-stage small agribusinesses. Additional funding windows are expected to support larger and export-oriented businesses with greater potential for value addition and employment generation.
“Across Afghanistan, farmers are still too often cut off from markets. What we’re doing here is supporting the businesses that can help change that,” said Richard Trenchard.
“These enterprises are already investing in their own growth. Our role, together with the World Bank, is to help them scale up, reach more farmers, create jobs in rural communities and build stronger connections between production and markets,” he added.
Agriculture remains the backbone of Afghanistan’s economy, supporting the livelihoods of around 80 percent of the population. More than half of Afghan women participating in the labor force are employed in the sector.
Officials said continued investment in agribusiness and market systems is critical as humanitarian funding declines while food insecurity and malnutrition remain widespread. They said strengthening the private sector could help create jobs, support farming communities and improve long-term food security across the country.
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Mullah Baradar launches $150 million Lajward residential complex in Balkh
He also encouraged business leaders to expand investments in the housing and construction sector.
The foundation stone of the Lajward Residential Complex was laid on Tuesday in northern Balkh province by Mullah Abdul Ghani Baradar, Deputy Prime Minister for Economic Affairs.
Speaking at the inauguration ceremony, Baradar said the Islamic Emirate is placing special focus on achieving economic self-reliance, attracting domestic and foreign investment, and implementing major infrastructure projects across the country.
He described the Lajward Residential Complex as a significant example of ongoing development efforts and noted that large-scale projects in sectors including industry, transportation, electricity generation, and urban development are currently underway.
Baradar stated that practical work on master plans and urban expansion projects is continuing alongside national initiatives such as the Qosh Tepa project. He added that the Islamic Emirate considers it a responsibility to provide opportunities and facilities for both local and foreign investors in the construction sector.
According to his office, the Deputy Prime Minister emphasized that cooperation between the government and the private sector is essential for economic stability and the reconstruction of Afghanistan, while assuring continued support for investors.
He also encouraged business leaders to expand investments in the housing and construction sector.
During his visit to Balkh, Baradar said he would inspect commercial ports in the province to ensure the provision of 24-hour services and improve the efficiency of export and import operations.
The Deputy Prime Minister noted that senior officials from various institutions are accompanying him to closely assess economic activities, development projects, and challenges related to port operations in the province.
According to the Deputy Prime Minister for Economic Affairs Office, the Lajward Residential Complex will be built with a private sector investment of $150 million.
The project includes the construction of approximately 1,448 modern apartments and is expected to create around 7,000 jobs.
The complex will be developed on nearly 21 jeribs of land and will include schools, healthcare and commercial facilities, green areas, a mosque, sports and recreational centers, and other public amenities.
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