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World Bank notes modest regional recovery, cites opportunities for Afghanistan’s economy
However, limited international recognition, reduced foreign aid, and continued restrictions on women’s participation in public life continue to constrain broader growth.
The World Bank’s latest Middle East, North Africa, Afghanistan & Pakistan (MENAAP) Economic Update projects modest growth across the region, with Afghanistan expected to benefit from greater regional trade integration and agricultural recovery, though significant challenges remain.
The report forecasts regional growth at 2.8 percent in 2025 and 3.3 percent in 2026, driven largely by easing oil production cuts in Gulf countries and stronger private investment in non-oil sectors. For Afghanistan, the Bank noted tentative signs of economic stabilization under the Islamic Emirate of Afghanistan (IEA), supported by improved revenue collection, a stable exchange rate, and modest export gains.
However, limited international recognition, reduced foreign aid, and continued restrictions on women’s participation in public life continue to constrain broader growth.
The report — Jobs and Women: Untapped Talent, Unrealized Growth — warns that the region’s economies cannot reach their full potential without fully integrating women into the workforce.
The MENAAP region continues to record the world’s lowest female labor participation rate, with only one in five women employed despite substantial progress in education.
“I urge bold action—not partial measures,” said Ousmane Dione, the World Bank’s Vice President for the Middle East, North Africa, Afghanistan & Pakistan region. “To unlock the full potential of women in the region, we must tackle every barrier to their inclusion with comprehensive measures.”
For Afghanistan, the report emphasizes that empowering women and expanding private sector opportunities – especially in agriculture, trade, and small-scale enterprises – could significantly improve household incomes and long-term resilience.
“Removing barriers that prevent women from accessing jobs could boost GDP per capita by as much as 20 to 30 percent in some economies,” added Roberta Gatti, the region’s chief economist.
While regional outlooks have improved, the World Bank cautioned that ongoing conflicts, displacement, and global trade volatility continue to pose serious risks to recovery – particularly for fragile and aid-dependent economies like Afghanistan.
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Coordinated attacks in Balochistan kill 15 Pakistani soldiers and 18 civilians
Pakistani authorities accused India of supporting the group and alleged that New Delhi is backing militant activity in Balochistan. India has not responded to the accusations.
At least 15 Pakistani soldiers and 18 civilians were killed in a series of coordinated attacks in Pakistan’s southwestern Balochistan province on Saturday, according to the Pakistani military.
The military said the attacks were carried out by the Baloch Liberation Army (BLA), prompting security forces to launch a large-scale counter-operation across the region. Officials said the operation resulted in the deaths of 92 militants.
The separatist group, which operates under the name Baloch Liberation Army, later claimed responsibility for the assaults.
Pakistani authorities accused India of supporting the group and alleged that New Delhi is backing militant activity in Balochistan. India has not responded to the accusations.
Interior Minister Mohsin Naqvi described the attackers as highly organized and claimed foreign involvement. “These were not ordinary terrorists. India is behind these attacks, and we will expose them globally,” he said.
Former U.S. special envoy for Afghanistan peace Zalmay Khalilzad said Pakistan’s long-standing approach to security in Balochistan has been ineffective, arguing that the situation requires a fundamental change in strategy.
Responding to Pakistan’s allegations, Indian Ministry of External Affairs spokesperson Randhir Jaiswal said New Delhi “categorically rejects” what he described as baseless claims, accusing Pakistan of attempting to deflect attention from its own internal challenges.
He said Pakistan should focus on addressing long-standing grievances in the region rather than repeating what he called unfounded accusations after every violent incident. Jaiswal added that Pakistan’s record on suppression, brutality, and human rights violations is well documented.
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Afghanistan, Turkmenistan discuss TAPI, rail and power projects in Herat meeting
Baradar also urged Turkmenistan to clarify its position on the Torghundi–Herat railway project, noting that Kazakhstan has shown strong interest in its implementation.
Afghanistan’s Deputy Prime Minister for Economic Affairs, Mullah Abdul Ghani Baradar, met on Sunday in Herat with Turkmenistan’s Foreign Minister, Rashid Meredov, to discuss major regional connectivity and energy projects.
The meeting was attended also by Afghanistan’s Minister of Mines and Petroleum Hedayatullah Badri, Minister of Energy and Water Mohammad Younus Akhundzada, as well as Turkmenistan’s ministers of transport and railways, state officials, and the head of the Turkmengaz state company, along with senior officials from both sides.
During the talks, the two delegations reviewed progress on the TAPI gas pipeline, TAP power transmission project, railway development, and electricity cooperation. Baradar said the launch of the TAPI project has strengthened ties between Afghanistan, Turkmenistan, and other regional countries, adding that Saudi Arabia’s Delta International Company has expressed interest in investing in multiple aspects of the project.
According to Baradar, Delta International is willing to invest in gas purchases from the TAPI project, expanding Turkmenistan’s major gas fields, constructing and extending the gas pipeline from Ghorian district of Herat to Spin Boldak in Kandahar and onward to the Indian border, as well as building a large modern gas hub at Pakistan’s Gwadar port.
Baradar also urged Turkmenistan to clarify its position on the Torghundi–Herat railway project, noting that Kazakhstan has shown strong interest in its implementation. He reaffirmed Afghanistan’s readiness to finalize the TAP project route map and pledged full cooperation on electricity transmission to Bala Murghab, Khomab and Qarqin districts, along with other regional connectivity initiatives.
He further emphasized the importance of creating job opportunities for Afghans through ongoing and future projects.
Speaking at the meeting, Turkmenistan’s Foreign Minister Rashid Meredov thanked the Islamic Emirate for facilitating the implementation of the TAPI project and said construction is expected to reach Herat city by the end of the current year. He welcomed the interest of foreign companies in investing in the project and stressed the need for close coordination.
Meredov also expressed Turkmenistan’s readiness to invest in the Torghundi–Herat railway project, noting that practical work has already begun in Torghundi. He added that Turkmenistan is prepared to increase electricity exports to Afghanistan through five transmission routes.
In addition, the two sides discussed expanding trade, enhancing banking cooperation, creating employment opportunities, and jointly managing economic projects across various sectors.
The meeting concluded with technical teams from both countries presenting detailed updates on the progress of ongoing projects.
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