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World Bank predicts Afghan economic growth 3.3% this year

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Afghanistan’s economy grew by an estimated 2.9 percent in 2019, driven mainly by strong agricultural growth following recovery from drought, but lingering political uncertainty dampens private confidence and investment, says the World Bank.

Released today, “Navigating a Sea of Uncertainty”, the latest edition of the twice-a-year Afghanistan Development Update examines recent key economic developments and focuses on the impacts of current uncertainties around the outcome of the September 2019 presidential election, levels of future international civilian and security support, and the prospect of a peace agreement with the Taliban. The Update also includes a special topic reflecting on achievement of development outcomes since 2001.

“Growth picked up in Afghanistan in 2019. This is good news, but insecurity and political uncertainty are holding back the Afghan economy,” said World Bank Country Director for Afghanistan Henry Kerali. “Afghanistan needs to ramp up the pace of reforms to generate faster growth necessary to improve the living standards of its people and reduce poverty.”

The report notes that as drought impacts further recede and private sector confidence improves following the conclusion of the presidential election, growth is expected to accelerate to 3.3 percent in 2020. Over the medium-term, growth is projected to hover around 4 percent provided that the security situation does not further deteriorate and that international aid support continues. Growth prospects are subject to other significant downside risks, including further political instability, unexpected cuts in foreign aid, and adverse regional developments.

Domestic revenue collection reached a new high of 14.5 percent of GDP in 2019, up from 13.3 percent in 2018. Strong revenue performance reflected both progress in establishing a robust tax system and substantial one-off revenues, including transfers from the Da Afghanistan Bank.

The potential for much-faster growth exists but remains dependent on continued support from the international community and the Afghan government’s commitment to pushing business environment and anti-corruption reforms, the report says.

“The international community needs to maintain its support to Afghanistan over the medium-term to sustain the country’s recent development progress and help realize its long-term growth and self-reliance prospects. In this effort, the Afghan government needs to assure its international partners that progress is being made on governance and that aid resources are used efficiently,” said Kerali.

To improve confidence in the short-term, the Development Update notes the need for Government to accelerate improvements in the business environment and anti-corruption reforms.

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NRC warns of alarming global shortfall in humanitarian funding in 2026

The organization says that halfway through 2026, only 30 percent of the funding required to support 143 million people out of 252 million in need globally has been received.

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The Norwegian Refugee Council (NRC) has warned that humanitarian funding for some of the world’s most neglected displacement crises has fallen to critically low levels in 2026, leaving millions of vulnerable people increasingly abandoned.

The organization says that halfway through 2026, only 30 percent of the funding required to support 143 million people out of 252 million in need globally has been received.

NRC Secretary General Jan Egeland described 2026 as a “make-or-break year” for millions affected by conflict in countries including Venezuela and Sudan, warning that continued funding cuts could lead to “a massive loss of lives.”

He said global assistance is declining at a time when violence, displacement, and inflation continue to rise, and stressed that humanitarian funding must be allocated based on need rather than geopolitical or national interests.

The report highlights that Afghanistan is among the worst affected and has been included for the first time on NRC’s list of the world’s most neglected crises, with humanitarian response plans currently only 11 percent funded.

NRC said the decline in funding comes as 21.9 million people in Afghanistan require assistance, while millions more are returning from neighboring countries.

Egeland warned that without a dramatic increase in support, millions of families in Afghanistan and other crisis-hit regions risk facing deeper hunger, displacement, and loss of basic services, urging donors to act before it is too late.

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Information and Culture Minister says Afghans ‘do not fear bombings or pressure’

Haqqani added that the Afghan people remain steadfast despite ongoing challenges.

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Afghanistan’s Minister of Information and Culture, Shar Ahmad Haqqani, said on Wednesday that Afghans are not intimidated by external pressure or military attacks, arguing that the country has already prevailed against opponents with superior weapons and technology.

Speaking at a seminar on intellectual, ideological and professional capacity building for journalists, Haqqani said Afghanistan had endured years of conflict and would not be deterred by threats.

“To those who killed our children in their sleep through cruel bombings, it must be said that we do not fear bombings and hardships. We defeated those who were more equipped than you in modern technology and weapons,” he said.

Haqqani added that the Afghan people remain steadfast despite ongoing challenges.

“We are neither afraid nor defeated,” he said.

The remarks were delivered during a training seminar for journalists focused on strengthening intellectual, ideological and professional capacity within Afghanistan’s media sector.

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Uzbekistan, Qatar reaffirm support for Afghanistan’s sustainable development

The two officials also exchanged views on regional issues and explored ways to enhance coordination on matters concerning Afghanistan.

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Uzbekistan and Qatar have reaffirmed their commitment to expanding bilateral cooperation and supporting Afghanistan’s sustainable development following talks between senior officials in Tashkent.

According to a statement from Uzbekistan’s Ministry of Foreign Affairs, the country’s Special Representative for Afghanistan, Ismatulla Irgashev, met with Qatar’s Ambassador to Uzbekistan, Hassan Hamza Hashim, on June 30 to discuss regional cooperation and developments related to Afghanistan.

The discussions focused on strengthening collaboration in trade, investment, transport and logistics, as well as cultural and humanitarian initiatives aimed at supporting Afghanistan’s long-term socio-economic recovery. The two officials also exchanged views on regional issues and explored ways to enhance coordination on matters concerning Afghanistan.

During the meeting, the Qatari delegation praised Uzbekistan’s continued efforts to assist Afghanistan’s reconstruction and economic development, highlighting Tashkent’s growing role in promoting regional dialogue, connectivity and stability.

According to the Uzbek Foreign Ministry, Qatar expressed appreciation for Uzbekistan’s “consistent efforts to support Afghanistan’s socio-economic recovery” and recognized the country’s important contribution to advancing regional stability and development.

Uzbekistan has increasingly sought to engage with Afghanistan through infrastructure projects, trade initiatives and humanitarian assistance, maintaining that the country’s economic recovery is essential for lasting security and prosperity across Central Asia.

The meeting concluded with both sides reaffirming their commitment to strengthening Uzbekistan-Qatar relations, expanding practical cooperation on regional issues, and maintaining regular dialogue on Afghanistan. They also expressed their readiness to continue working together to promote peace, sustainable economic development and greater regional connectivity.

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