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World Bank reports Afghanistan’s economic recovery remains ‘fragile’

The World Bank report revealed that Afghanistan’s trade deficit surged by 54 percent in 2024, reaching $9 billion, which represents 45 percent of the country’s gross domestic product (GDP).

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In their January Economic Monitor report, the World Bank noted Monday that while Afghanistan’s economic growth in 2023-24 was a positive development, growth remained insufficient to significantly improve social indicators.

“High poverty, unemployment, limited resources, and weak purchasing power continue to leave millions vulnerable,” the report stated adding that the outlook remains fragile due to policy uncertainty, financial isolation, and inadequate human and
physical capital.

“A rapid decline in foreign aid could further weaken aggregate demand, exacerbating economic pressures,” the World Bank stated.

The World Bank report revealed that Afghanistan’s trade deficit surged by 54 percent in 2024, reaching $9 billion, which represents 45 percent of the country’s gross domestic product (GDP).

The report attributes this decline to a five percent drop in exports, totaling $1.8 billion, primarily due to a reduction in coal and textile exports.

“Coal exports saw the steepest decline, plunging 64 percent to $92 million as Pakistan shifted to its traditional suppliers,” stated the World Bank.

The report highlighted an 11.5 percent increase in Afghanistan’s revenue collection, primarily driven by non-tax revenue and taxes levied at the country’s borders.

“Revenue collection remained strong in the first ten months of FY2024-25 (March 22, 2024 – January 21, 2025), totaling AFN 190.5 billion ($2.5 billion), or 12 percent of annual GDP,” stated the report.

The report also noted the country’s central bank, Da Afghanistan Bank, suspended US dollar auctions from September 4 to December 9 last year, which contributed to the depreciation of the afghani (AFN). The auctions resumed in January 2025, with the bank injecting more than $100 million.

The World Bank noted that fragile trade relations with Pakistan pushed Afghanistan to diversify its export markets, with Iran, Kazakhstan, and Uzbekistan each contributing around three percent of total exports.

However, Pakistan remains the largest export destination, accounting for 45 percent, followed by India at 34 percent.

“Afghanistan’s export base remains heavily dependent on food and coal, which made up 60 percent of total exports in 2024, down from 80 percent in 2023,” the report read adding that “this
highlights the urgent need for Afghanistan to expand its export portfolio and reduce reliance on a few commodities and markets”.

The World Bank stated that domestic tax revenue meanwhile grew 11 percent to AFN 72.1 billion, contributing 2.8 percentage points to overall revenue growth.

Non-tax revenue increased by 22 percent to AFN 66 billion. This growth was driven by higher income from mining, tolls, vehicle registrations, passport issuance, transport services, railways, and telecommunications, the report read.

“Ministries responsible for non-tax revenue exceeded targets by eight percent, contributing 45 percent to inland revenue collection,” the World Bank stated.

Customs duties and fees grew 20 percent year-on-year to AFN 51.5 billion, contributing 4.5 percentage points to total revenue growth. This increase was fueled by higher imports, stronger trade ties with Iran and Central Asia, improved border management, and recent tariff adjustments.

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Karzai and Abdullah condemn Pakistani airstrikes, join calls for dialogue

Karzai described the reported attacks as a violation of Afghanistan’s national sovereignty and contrary to international law and accepted international norms.

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Former Afghan President Hamid Karzai and former Chairman of the High Council for National Reconciliation Abdullah Abdullah have strongly condemned the reported Pakistani airstrikes in eastern Afghanistan, joining growing calls for dialogue amid rising tensions between the two neighbouring countries.

Their statements came after Pakistan carried out overnight airstrikes on residential areas in the eastern provinces of Paktia, Paktika and Kunar. 

Afghan officials say at least 36 civilians, including women and children, were killed and 163 others wounded. 

According to Afghan authorities, the deadliest strike occurred in Mandokhail village in Paktia’s Chamkani district, where an initial airstrike reportedly hit a civilian home before a second strike allegedly targeted villagers who had gathered to rescue the wounded. 

Additional strikes were reported in Paktika’s Giyan district and Kunar’s Manogai district.

Karzai described the reported attacks as a violation of Afghanistan’s national sovereignty and contrary to international law and accepted international norms.

He extended his condolences to the families of those killed, wished a speedy recovery to the injured, and urged Pakistan to abandon what he described as confrontational policies and double standards toward extremism. 

Karzai said it was in Pakistan’s own interest to pursue relations with Afghanistan based on good neighbourliness, mutual respect and constructive engagement.

Abdullah Abdullah also condemned the strikes, saying they had caused heavy civilian casualties and describing them as a hostile act that would only deepen tensions between the two countries.

He argued that military force has repeatedly failed to resolve disputes and called on both sides to embrace dialogue, diplomacy and the principles of good neighbourly relations to address their differences peacefully.

The condemnation follows similar criticism from former US Special Representative for Afghanistan Reconciliation Zalmay Khalilzad, who said Pakistan had once again resorted to military action despite repeated calls from the international community and many Pakistanis to resolve disputes through dialogue.

Khalilzad said he has consistently condemned the killing of Afghan civilians and questioned whether Islamabad is genuinely seeking a negotiated solution. He also argued that Pakistan had failed to respond to several proposals put forward by the Islamic Emirate to address bilateral security concerns.

The former US envoy further questioned whether Pakistan’s security establishment may be pursuing broader strategic objectives, including keeping Afghanistan unstable, warning that continued conflict could strengthen extremist groups such as ISIS-K and increase China’s influence in Afghanistan.

Relations between Afghanistan and Pakistan have remained tense in recent years, with both governments accusing each other of failing to address cross-frontier militant activity. 

Pakistan has previously said its military operations target armed groups responsible for attacks inside its territory, while Afghan authorities have repeatedly condemned cross-frontier strikes as violations of Afghanistan’s sovereignty and say civilians continue to bear the brunt of the violence.

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Canada makes World Cup history with late goal to eliminate South Africa

Canada will now face either Morocco or the Netherlands in the Round of 16 on July 4 in Houston, with a place in the quarter-finals at stake.

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Canada secured a place in the FIFA World Cup Round of 16 for the first time in the men’s team’s history after Stephen Eustáquio scored a dramatic stoppage-time winner to seal a 1-0 victory over South Africa in Los Angeles on Sunday.

With extra time looming, Eustáquio struck from the edge of the penalty area deep into added time, sending Canadian players and supporters into celebration and ending South Africa’s impressive World Cup campaign.

The victory marks Canada’s first-ever win in the knockout stages of a men’s FIFA World Cup and continues a remarkable tournament for Les Rouges, who have surpassed all previous World Cup performances.

Captain Alphonso Davies made his long-awaited tournament debut after recovering from injury, entering the match as a substitute in the 75th minute. His introduction injected fresh energy into Canada’s attack as the North Americans increased the pressure during the closing stages before Eustáquio finally found the breakthrough.

South Africa defended resolutely for much of the contest and created several opportunities of their own, but were unable to find a way past the Canadian defence. Bafana Bafana’s elimination ends a memorable World Cup run after becoming one of the standout African teams in the group stage.

Canada will now face either Morocco or the Netherlands in the Round of 16 on July 4 in Houston, with a place in the quarter-finals at stake.

The result also represents another milestone for Canadian football. After enduring decades without a World Cup victory and suffering six consecutive defeats across previous appearances, the national team has now reached the last 16 for the first time and established itself among the tournament’s surprise packages.

The win sparked celebrations among Canadian supporters both in Los Angeles and at fan festivals across Canada, where thousands watched Eustáquio’s late strike secure one of the country’s most significant achievements in men’s football.

For South Africa, the defeat ends an inspiring campaign that captured the imagination of football fans across the African continent. Although Bafana Bafana fell just short of the Round of 16, their performances throughout the tournament highlighted the continued rise of African football on the global stage, with a record number of African nations reaching the knockout rounds of the 2026 FIFA World Cup.

The FIFA World Cup Round of 32 continues on Monday evening with two knockout matches in Afghanistan time. Brazil face Japan from 9pm and  Germany takes on Paraguay at 12.30am. Both winners will advance to the Round of 16. 

The Netherlands’ clash with Morocco will be played from 5.30am Kabul time, with the winner set to face Canada in the last 16. 

Fans can tune in to all three matches to watch all the thrills and spills unfold live and exclusively on Ariana Radio and Television Network (ATN).

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Critically injured airstrike victims airlifted to Kabul for emergency treatment

WATCH VIDEO: The medical evacuations come as Afghan officials continue to assess the human toll of Pakistan’s overnight airstrikes against Afghanistan.

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Thirty-three critically injured civilians have been airlifted to Kabul by helicopter for emergency medical treatment following reported airstrikes in eastern Afghanistan, health officials said on Monday.

According to officials, the patients are among 66 people initially identified as being in critical condition after the strikes, which reportedly hit residential areas in the eastern provinces of Paktia, Paktika and Kunar overnight.

The injured have been admitted to several hospitals across the capital, where specialist medical teams are providing emergency care. Authorities have not released details on the conditions of the remaining critically wounded patients or whether they will also be transferred to Kabul.

The medical evacuations come as Afghan officials continue to assess the human toll of Pakistan’s overnight airstrikes against Afghanistan.

The Islamic Emirate has accused Pakistan of carrying out the strikes, saying at least 36 civilians, including women and children, were killed and 163 others wounded. Officials said the deadliest attack occurred in Mandokhail village in Paktia’s Chamkani district, where a residential home was allegedly struck before a second strike hit as villagers gathered to help the wounded.

Additional strikes were reported in Paktika’s Giyan district and Kunar’s Manogai district, where authorities said several homes were damaged or destroyed.

Pakistan has not officially commented on the allegations, and the casualty figures released by Afghan authorities have not been independently verified.

The reported strikes have drawn widespread condemnation from senior Afghan officials and international figures, including former US Special Representative for Afghanistan Reconciliation Zalmay Khalilzad, who criticised the attacks and called for dialogue between the two neighbouring countries rather than military action.

The latest violence underscores the continuing tensions along the Afghanistan-Pakistan frontier, where both countries have repeatedly exchanged accusations over cross-border militancy and security threats.

Afghan authorities have described the reported strikes as violations of the country’s sovereignty, while Pakistan has previously maintained that its military operations target militant groups it says operate from Afghan territory.

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