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World Bank: Afghanistan’s economic growth too weak to improve living standards
Afghanistan’s economy continued to grow modestly in June 2026, supported by resilient domestic demand, stable prices and stronger revenue collection, but the pace of growth remains insufficient to improve living standards, according to the World Bank’s latest Afghanistan Economic Monitor.
The report said economic growth has failed to keep pace with rapid population growth, driven in part by the return of millions of Afghans, resulting in a 5.6% decline in per capita income and mounting pressure on household welfare.
Headline inflation eased to 7.6% in June from 8.0% in May, as food prices fell with the start of the domestic harvest season and continued imports. However, core inflation rose to 8.3%, reflecting persistent pressures from housing and healthcare costs.
The World Bank said the Afghan currency depreciated modestly to AFN 64.4 per U.S. dollar in June, although it remained stronger than a year earlier. It noted that improved inflation differentials with neighboring countries enhanced Afghanistan’s external price competitiveness.
The report also highlighted continued disruptions to regional trade caused by the closure of key Durand Line crossings with Pakistan and geopolitical tensions in the Middle East. While businesses increasingly relied on Central Asian transit routes, Afghanistan’s trade deficit widened 11% from the previous month and 19% year-on-year to $984.3 million in June.
Exports totaled $77.7 million in June, down 2% from May but up 19% compared with a year earlier. Textile exports surged 304% year-on-year, while food exports declined month-on-month and coal exports remained negligible. India remained Afghanistan’s largest export destination, accounting for 33.6% of total exports.
Imports rose to $1.06 billion, up 10% from May and 19% from a year earlier, driven by stronger demand and a shift toward Central Asian transit corridors, which accounted for 48% of imports. Iran remained Afghanistan’s largest import source, supplying 31% of total imports.
On public finances, domestic revenue reached AFN 17.3 billion in June, down from the previous month but 8.7% higher for the fiscal year to date, supported by improved tax administration and higher non-tax revenues. Public expenditure declined to AFN 17.5 billion, while the fiscal position remained in surplus as spending continued to be limited by available domestic revenues.
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Pakistan welcomes US offer to facilitate dialogue with Afghanistan, while Kabul rejects Islamabad’s allegations
US Secretary of State Marco Rubio, who expressed Washington’s willingness to play a constructive role in reducing tensions between Afghanistan and Pakistan.
Pakistan has welcomed a US offer to facilitate dialogue between Islamabad and Kabul, expressing readiness to support diplomatic efforts by Washington and other friendly countries to ease tensions between the two neighbouring nations.
According to Pakistan’s Foreign Ministry, meaningful negotiations with Afghanistan would require clear commitments and practical, verifiable action by the Islamic Emirate authorities against militant groups allegedly operating from Afghan territory.
The Pakistani official specifically referred to the Tehreek-e-Taliban Pakistan (TTP), the Balochistan Liberation Army (BLA) and other armed groups, describing action against them as a key condition for progress in bilateral talks.
However, the Islamic Emirate has rejected Pakistan’s allegations, maintaining that no armed groups are present in Afghanistan and that Afghan territory is not being used against any country, particularly neighbouring states.
The developments follow remarks by US Secretary of State Marco Rubio, who expressed Washington’s willingness to play a constructive role in reducing tensions between Afghanistan and Pakistan.
Pakistan says it remains committed to constructive engagement with Kabul but insists that dialogue must address Islamabad’s security concerns.
Meanwhile, the Islamic Emirate maintains that Pakistan’s security challenges are internal matters and that responsibility for resolving them should not be placed on Afghanistan.
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Afghan PM accepts credentials of Belarusian ambassador
Foreign Minister Amir Khan Muttaqi and Mullah Abdul Wasi, director general of the Office of the Prime Minister, also attended the ceremony.
Mullah Mohammad Hassan Akhund, prime minister of the Islamic Emirate, has received the credentials of Aleksandr Ogorodnikov, Belarus’ non-resident ambassador and special envoy to Afghanistan, during a ceremony at the Arg in Kabul.
Foreign Minister Amir Khan Muttaqi and Mullah Abdul Wasi, director general of the Office of the Prime Minister, also attended the ceremony. The two sides discussed expanding political, economic and transit relations between Afghanistan and Belarus.
Akhund described the start of the ambassador’s mission as a sign of a new chapter in relations between the two countries and expressed hope that his appointment would further strengthen political, economic and transit cooperation between Kabul and Minsk. He said Afghanistan was ready for comprehensive cooperation in these areas.
For his part, Ogorodnikov expressed satisfaction with the start of his mission in Afghanistan and said Belarus planned to increase trade with Afghanistan in the fields of agriculture, food products and pharmaceuticals.
He also said recent visits by various Islamic Emirate delegations to Belarus had helped strengthen trust and expand bilateral relations.
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36 Afghans among 38 migrants rescued off Dutch coast; two Sudanese arrested
The migrants were rescued on Saturday after their rubber boat, which had no functioning engine, was found drifting off the Dutch coast.
Dutch authorities have confirmed that 36 of the 38 men rescued from a stranded rubber boat off the coast of Cadzand in Zeeland are Afghan nationals, while two Sudanese men have been arrested on suspicion of human smuggling.
The migrants were rescued on Saturday after their rubber boat, which had no functioning engine, was found drifting off the Dutch coast.
Following the rescue, the vessel was towed to Cadzand, where all 38 men were brought ashore. The two Sudanese nationals were subsequently arrested as part of an investigation into suspected human smuggling.
The 36 Afghan nationals are currently being held in temporary custody at the Royal Netherlands Marechaussee facility in Hoogerheide, in the Brabant-Oost region.
Authorities are working to establish their identities and determine whether they intend to seek asylum in the Netherlands.
The Marechaussee is leading the operation, with support from the Royal Netherlands Sea Rescue Institution (KNRM) and the Dutch Coast Guard.
The vessel was reportedly a Zodiac-type inflatable boat, commonly used in migrant crossings. However, authorities have not disclosed where the boat originated or its intended destination.
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