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USIP reports Afghanistan’s banking system dysfunctional

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The United States Institute of Peace (USIP) has said in a new report that Afghanistan’s banking system remains largely dysfunctional.

This report evaluated the Afghan banking system as inefficient. It said that the lack of access to Afghanistan’s foreign exchange reserves and the obstacles in the way of printing banknotes add to these problems.

USIP has warned that the decrease in cash and humanitarian aid will have a destructive effect on the economy and financial system of Afghanistan.

The report highlights systemic challenges within Afghanistan’s banking sector, including a backlog of bad loans and limited depositor access to funds due to withdrawal restrictions imposed by Da Afghanistan Bank (DAB).

“Afghanistan’s precarious economy is facing a new set of multidimensional risks as humanitarian aid — delivered in massive shipments of U.S. cash dollars — shrinks rapidly amid competing demands from other crises around the world. The dollar inflows, moved under U.N. auspices, have helped stabilize the Afghan economy, cover its mammoth trade deficit, and inject monetary liquidity into commerce,” the report said.

“With much smaller cash infusions, in line with a general reduction in aid, the suffering of Afghanistan’s poverty-stricken population is likely to increase,” USIP has warned.

The author of this report has suggested that, contrary to the confrontation between the countries of the world and the Islamic Emirate on the issue of women’s rights, other countries and international organizations can play a supporting role in facilitating the printing of more Afghan banknotes and allow the use of investment income from the Afghanistan Fund in Switzerland to stabilize the macroeconomics.

Da Afghanistan Bank (DAB) has not yet reacted to this report, but it has already emphasized that it will continue its efforts by implementing reasonable monetary policies that lead to maintaining the value of the afghani against other currencies.

DAB also stressed it will pay special attention to the strength of the banking sector and bring reforms and improvements as much as possible in this sector.

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Five civilians killed in firing by Pakistani forces on Kandahar’s Spin Boldak

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Five civilians were killed and five others wounded in firing by Pakistani troops on Spin Boldak district of Kandahar province late on Friday, sources told Ariana News.

The attack comes two days after a new round of peace talks between Afghanistan and Pakistan reportedly ended without a breakthrough, though both sides agreed to continue their fragile ceasefire.

The recent talks in Saudi Arabia were the latest in a series of meetings hosted by Qatar, Turkey and Saudi Arabia aimed at easing tensions after deadly clashes near the Durand Line in October. Dozens were killed in the clashes in October.

Islamabad claims that Afghanistan-based militants carried out the recent attacks in Pakistan. Kabul denies the allegations, saying it cannot be held responsible for security inside Pakistan.

Zabihullah Mujahid, spokesman for the Islamic Emirate, said Afghan forces had responded to the recent Pakistani attacks.

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IEA should respond to Pakistan’s security concerns with concrete actions: Andrabi

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Pakistani Foreign Ministry spokesman Tahir Hussain Andrabi says both Pakistan’s Prime Minister Shehbaz Sharif and Sadyr Japarov, the President of Kyrgyzstan, who visited Islamabad on Thursday, expressed their mutual commitment to a peaceful, stable Afghanistan with a sustainable future for the Afghan people.

Speaking in a press conference on Friday, Andrabi stated that both sides agreed that the Islamic Emirate must fulfill its obligations toward the international community and take concrete steps against terrorist groups to address Pakistan’s legitimate security concerns.

This comes while the Islamic Emirate of Afghanistan has repeatedly emphasized that no terrorist groups operate from Afghan territory and that it will not allow anyone to use Afghan soil against any country.

The Islamic Emirate has also stated that Pakistan’s security concerns are an internal issue of that country, and Pakistan itself must take measures to prevent any security incidents.

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Malaysia’s PM calls peaceful solution to Afghanistan-Pakistan tensions

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Malaysian Prime Minister Datuk Seri Anwar Ibrahim has voiced deep concern over escalating tensions between the Afghanistan–Pakistan during a telephone conversation with Pakistan’s Prime Minister Shehbaz Sharif.

In a statement posted on Facebook, Anwar said he emphasized Malaysia’s concerns regarding regional stability and urged all parties to pursue a peaceful resolution through dialogue and diplomatic engagement to prevent further escalation.

His remarks follow media reports indicating heightened tensions between Afghanistan and Pakistan after a series of attacks in October.

During the call, the two leaders also exchanged views on several aspects of Malaysia–Pakistan bilateral relations.

Anwar also briefed Sharif on the ongoing flood situation in Malaysia and similar challenges facing neighboring countries, including Indonesia and Thailand.

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