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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.

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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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Karzai voices concern over reported visa problems facing Afghan students in Pakistan

The comments come amid ongoing concerns over visa renewal delays affecting Afghan students studying in Pakistan.

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Former Afghan President Hamid Karzai has expressed concern over reports that Afghan students in Pakistan are facing difficulties renewing their visas and allegations of harassment by authorities.

In a statement, Karzai described the reports as regrettable and urged the relevant Pakistani authorities to keep the issue of students’ residency separate from broader matters affecting relations between Afghanistan and Pakistan.

He said Afghan students had travelled to Pakistan solely to pursue their education and should be treated in line with the standards and practices normally afforded to students in academic institutions. Karzai stressed that they should be able to continue their studies without facing legal or administrative obstacles related to their immigration status.

The comments come amid ongoing concerns over visa renewal delays affecting Afghan students studying in Pakistan.

Last month, the Islamic Emirate’s Consul General in Karachi, Abdul Jabbar Takhari, confirmed that many students in Pakistan’s Sindh province have been able to continue attending university but have been unable to renew their visas after their existing permits expired because Pakistani authorities have not yet issued new visas.

The delays have left a number of students in legal uncertainty, raising concerns about their ability to remain in the country and complete their education.

Takhari also said the situation is more difficult in some other provinces, where Afghan students reportedly face a greater risk of detention or deportation as Pakistan continues its campaign against undocumented foreign nationals.

Pakistan has been implementing a nationwide repatriation policy targeting undocumented foreigners since late 2023, resulting in the return of hundreds of thousands of Afghans. Although students with valid visas have generally been exempt from the campaign, delays in visa renewals have increased fears that some could become vulnerable to enforcement measures if their documentation lapses.

Afghan officials have repeatedly called on Pakistan to facilitate visa renewals for students, warning that prolonged delays could disrupt their education and create further hardship for young Afghans seeking to complete their studies.

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Mujahid: Afghanistan-Pakistan tensions benefit neither side

Mujahid reiterated that maintaining security and fostering stable relations with neighbouring countries remain key priorities for the Islamic Emirate.

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The Islamic Emirate’s spokesman, Zabihullah Mujahid, says ongoing tensions between Afghanistan and Pakistan are in the interests of neither country, stressing that the Islamic Emirate is working to resolve outstanding issues through dialogue and constructive engagement.

Speaking to reporters, Mujahid said the Islamic Emirate does not seek political or economic disputes with any nation. However, he claimed Pakistan has disrupted Afghan trade by blocking transit routes, creating difficulties for traders and cross-border commerce.

Commenting on security, Mujahid dismissed the group known as the “United Front,” saying it exists only on social media and has no meaningful presence inside Afghanistan.

He said Afghanistan’s security forces would not allow any group or individual to threaten the country’s stability, adding that similar groups had previously operated under different names and had simply rebranded themselves.

Mujahid reiterated that maintaining security and fostering stable relations with neighbouring countries remain key priorities for the Islamic Emirate.

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EU holds landmark migration talks with Islamic Emirate delegation

Belgium issued one-day visas to the delegation, led by Afghan foreign ministry spokesman Abdul Qahar Balkhi.

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The European Union has held its highest-level talks with the Islamic Emirate of Afghanistan since 2021, hosting a five-member Afghan delegation in Brussels to discuss migration and the return of Afghan nationals.

The June meeting followed earlier talks in Austria and came as several EU member states push for faster deportations of rejected asylum seekers and Afghans convicted of crimes.

Belgium issued one-day visas to the delegation, led by Afghan foreign ministry spokesman Abdul Qahar Balkhi.

While the European Commission insisted the talks do not constitute formal recognition of the Islamic Emirate, the meeting marked the first official engagement between EU officials and an Afghan delegation on European soil since the change of government in Kabul in 2021.

Afghan officials described the visit as historic, saying it was aimed at building confi dence, expanding diplomatic engagement and improving arrangements for the return of Afghan nationals. Kabul also renewed its call for IEA-appointed diplomats to be accepted at Afghan embassies across Europe.

Migration has become a key political issue across Europe, with many governments seeking stricter asylum policies and increased deportations. According to EU data, around one million Afghans applied for asylum in EU countries between 2013 and 2024, with roughly half of the applications approved.

European officials increasingly acknowledge that cooperation with the authorities in Kabul is necessary to manage deportations, consular services and humanitarian coordination. Germany and Austria have already held discussions with Afghan officials and have deported Afghan nationals convicted of criminal offences.

Despite the practical need for engagement, the talks remain politically sensitive. EU officials stressed the discussions were technical and should not be viewed as a step toward formal recognition.

Human rights groups and some European lawmakers warned that increased cooperation could be seen as legitimising the Islamic Emirate without securing commitments on human rights or governance.

The meeting highlights the EU’s effort to balance its migration priorities with its foreign policy principles, while the Islamic Emirate continues seeking greater international engagement despite the absence of formal diplomatic recognition.

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