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USIP reports Afghanistan’s banking system dysfunctional
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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UN envoy urges progress on women’s rights during Afghanistan visit
She also reaffirmed the UN’s readiness to support Afghans returning from neighboring countries.
United Nations Under-Secretary-General for Political and Peacebuilding Affairs Rosemary DiCarlo concluded her visit to Afghanistan on Sunday after holding meetings with the Islamic Emirate authorities, civil society representatives, women leaders and Afghan female UN personnel.
During meetings with the IEA, DiCarlo reaffirmed the UN’s commitment to advancing the Doha process and noted progress made by its two working groups on counter-narcotics and the private sector.
She stressed the importance of turning dialogue into practical results for the Afghan people, while both sides reaffirmed their commitment to continued engagement.
DiCarlo also conveyed concerns raised by UN member states over the situation of women and girls, particularly restrictions on girls’ access to education.
She said progress on women’s and girls’ rights would contribute to Afghanistan’s development and also raised concerns over restrictions affecting Afghan female UN personnel.
The UN official highlighted the challenges facing Afghanistan, including economic and social pressures, climate change and natural disasters.
She also reaffirmed the UN’s readiness to support Afghans returning from neighboring countries.
During meetings with civil society representatives and women leaders, DiCarlo recognized their important contributions to communities across Afghanistan.
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Muttaqi, Lavrov discuss expanding Afghanistan-Russia ties
The two sides also discussed regional stability, counter-narcotics efforts and security issues, with Russia acknowledging Afghanistan’s efforts in these areas.
Afghanistan’s Foreign Minister Amir Khan Muttaqi met with Russian Foreign Minister Sergey Lavrov in Moscow to discuss bilateral relations, economic and trade cooperation, regional developments and continued political consultations.
According to Afghanistan’s Ministry of Foreign Affairs, Muttaqi called for deeper political understanding between the two countries and greater cooperation in trade, transit and economic affairs.
He stressed Afghanistan’s interest in developing long-term and mutually beneficial relations with Russia.
Lavrov emphasized the importance of continued political consultations and expressed Moscow’s interest in further expanding economic and trade ties with Afghanistan.
The two sides also discussed regional stability, counter-narcotics efforts and security issues, with Russia acknowledging Afghanistan’s efforts in these areas.
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Afghan FM says issues with Pakistan can be resolved through dialogue and diplomacy
Muttaqi further said the Islamic Emirate would continue to formulate its foreign policy independently and would not abandon its core policies under external pressure.
Afghanistan’s Foreign Minister Amir Khan Muttaqi has said all security, political and economic disputes between Afghanistan and Pakistan can be resolved through dialogue and diplomacy.
Speaking at the Moscow Format meeting on Monday, Muttaqi said Kabul does not want its relations with Islamabad to descend into mutual accusations and propaganda, stressing that Afghanistan’s objective is to resolve existing problems rather than prolong them.
“Our fundamental position is that the existing problems between Afghanistan and Pakistan, whether security, political or economic, can be resolved through dialogue and diplomacy,” he said.
Muttaqi criticized the Pakistani government for what he described as its approach of using “military language” instead of political engagement in dealing with Afghanistan.
He accused Pakistan of violating Afghanistan’s sovereignty through military actions in recent years and said civilians were killed in recent attacks in Kunar, Helmand and Paktika provinces.
The Afghan foreign minister also called for greater regional cooperation on security, countering Daesh, combating narcotics and preventing smuggling. He said Afghanistan was ready to work with neighboring and regional countries to strengthen border security and jointly combat organized crime.
Muttaqi further said the Islamic Emirate would continue to formulate its foreign policy independently and would not abandon its core policies under external pressure.
“Afghanistan considers self-defense against any aggression its inalienable right,” he said.
Turning to economic issues, Muttaqi urged regional countries to expand trade and investment ties with Afghanistan. He said Kabul wants Afghanistan to become a hub for regional cooperation and connectivity
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