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US House passes bill to stop financial aid to Islamic Emirate of Afghanistan

Abdul Latif Nazari, Deputy Minister of Economy, characterized the legislation as part of a broader pressure campaign.

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The U.S. House of Representatives has passed new legislation aimed at increasing oversight and restricting financial aid to Afghanistan, specifically to prevent the Islamic Emirate government from gaining access to U.S. taxpayer-funded assistance.

The bill, co-sponsored by Representative Tim Burchett, outlines three core objectives: blocking the Islamic Emirate of Afghanistan (IEA) from accessing financial and material support, increasing transparency around cash assistance programs, and closely monitoring the Afghanistan Trust Fund (ATF) and the Central Bank of Afghanistan.

“This bill is about protecting American resources and ensuring they do not fall into the hands of those who undermine international norms,” Burchett said during floor debate.

The House Foreign Affairs Committee praised the bill as a necessary corrective, referencing reports that millions in aid may have entered Afghanistan with insufficient oversight following the U.S. military withdrawal.

Under the new law, the State Department is required to establish mechanisms to prevent humanitarian aid from being misused and to provide detailed, recurring updates to Congress on these measures.

The Islamic Emirate rejected the bill, calling it interference in Afghanistan’s internal affairs. Spokesperson Zabihullah Mujahid said the Ministry of Economy administers humanitarian aid with fairness and independence, and accused the U.S. of politicizing relief efforts.

Abdul Latif Nazari, Deputy Minister of Economy, characterized the legislation as part of a broader pressure campaign.

He insisted that Afghanistan’s economy could endure without U.S. assistance, pointing to ongoing efforts toward economic self-sufficiency. Even if the aid stops, our economy will rely on domestic sources, he said.

However, independent analysts warn that any sharp reduction in international aid could significantly undermine humanitarian operations in a country still grappling with high poverty, food insecurity, and economic instability. Several NGOs and aid agencies reliant on U.S. funding have already scaled back operations.

The legislation also signals a more assertive policy shift under President Donald Trump, whose administration has prioritized a security-first, results-driven approach to engagement with Afghanistan.

With declining foreign support and strained diplomatic relations, Afghanistan’s economic future—and its ability to maintain basic services—now faces a period of deep uncertainty.

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Ghulam Khan border crossing in Khost temporarily reopened after two-week closure

The crossing had been closed by Pakistani authorities nearly two weeks ago without any formal explanation.

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The Ghulam Khan border crossing in Afghanistan’s southeastern Khost province has been officially reopened for a period of 15 days, following a two-week closure that disrupted trade between Afghanistan and Pakistan, according to Border Police spokesperson Abidullah Uqab Farooqi.

Farooqi stated on Tuesday, July 16, that the temporary reopening would allow for the resumption of cargo transportation and trade activities between traders and freight companies. He emphasized that the move will help prevent further spoilage of perishable goods that had been stuck at the border.

Ghulam Khan is considered one of the most critical trade gateways between Afghanistan and Pakistan. It plays a vital role in the transportation of essential goods and raw materials between the two neighboring countries.

The crossing had been closed by Pakistani authorities nearly two weeks ago without any formal explanation. The abrupt shutdown caused significant disruptions for Afghan traders and truck drivers, with many reporting financial losses due to delayed shipments and rotting goods.

While the border has now reopened temporarily, Pakistani officials have yet to issue any formal statement regarding either the initial closure or the rationale behind its reopening.

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Afghanistan-Pakistan trade surges 25% to nearly $2 billion in 2024

The growth was largely driven by a 31 percent increase in Pakistani exports, which rose to $1.391 billion, while imports from Afghanistan grew by 13 percent, reaching $607 million

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Pakistan trade

Bilateral trade between Afghanistan and Pakistan rose by 25 percent in the fiscal year 2024–25, reaching $1.998 billion, up from $1.603 billion the previous year, a Pakistani official told local media.

The growth was largely driven by a 31 percent increase in Pakistani exports, which rose to $1.391 billion, while imports from Afghanistan grew by 13 percent, reaching $607 million, The Nation reported.

Among Pakistan’s top-performing exports was sugar, which saw a staggering 4,333 percent increase, climbing from $5.93 million in FY2023–24 to $262.77 million.

Other key exports included construction materials, textiles, and pharmaceuticals.
However, some products—including rice, eggs, salts, electrical equipment, and footwear—recorded year-on-year declines of between 17 and 99 percent.

On a monthly basis, June 2025 marked a strong finish, with exports rising 90 percent year-on-year to $142 million, up from $75 million in June 2024. Imports, however, fell by 29 percent year-on-year and by 54 percent compared to May 2025.

Overall, June 2025 bilateral trade stood at $158 million, reflecting a 62 percent year-on-year increase and a 9 percent rise month-on-month, suggesting momentum in trade ties despite fluctuations in certain import categories.

Analysts attribute the surge to improved regional connectivity, enhanced trade facilitation, and greater demand for Pakistani goods in Afghan markets.

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Iran’s non-oil exports to Afghanistan totaled $510 million in first quarter

A technical meeting in Kabul on April 10 reviewed progress on the Tehran-Kabul economic pact, focusing on trade, transit, mining, and agriculture.

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trucks from Iran

Iran exported $510 million in non-oil goods to Afghanistan between March 21 and June 21, making it Iran’s fifth-largest export destination, according to the Iran Customs Administration.

Officials and business leaders emphasized the growing trade relationship was key to regional stability. At a recent Iran-Afghanistan trade conference, ICCIMA’s deputy head, Payam Baqeri, called for a deeper economic partnership, citing shared history and complementary resources—such as Iran’s industrial infrastructure and Afghanistan’s mineral wealth.

Baqeri also highlighted efforts to expand trade through joint ventures, workforce development, and easing trade barriers. Meanwhile, Iran’s Agriculture Minister expressed readiness to boost cooperation in agricultural services and called for a joint committee to advance bilateral ties.

A technical meeting in Kabul on April 10 reviewed progress on the Tehran-Kabul economic pact, focusing on trade, transit, mining, and agriculture.

Bilateral trade between the two countries surged by 84% in 2024, reaching $3.2 billion.

Iran exported $3.14 billion worth of goods—mostly oil products, steel, food, and construction materials—while Afghanistan’s exports to Iran, mainly raw and agricultural products, grew by 116% to $54 million.

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