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World Bank says 26 poorest nations in worst financial shape since 2006
Most of the countries in the study are in sub-Saharan Africa, from Ethiopia to Chad and Congo, but the list also includes Afghanistan and Yemen, read the report.
The world’s 26 poorest countries, home to 40% of the most poverty-stricken people, are more in debt than at any time since 2006 and increasingly vulnerable to natural disasters and other shocks, a new World Bank report showed on Sunday.
The report finds that these economies are poorer today on average than they were on the eve of the COVID-19 pandemic, even as the rest of the world has largely recovered from COVID and resumed its growth trajectory, Reuters reported.
Released a week before World Bank and International Monetary Fund annual meetings get underway in Washington, the report confirms a major setback to efforts to eradicate extreme poverty and underscores the World Bank’s efforts this year to raise $100 billion to replenish its financing fund for the world’s poorest countries, the International Development Association (IDA).
The 26 poorest economies studied, which have annual per-capita incomes of less than $1,145, are increasingly reliant on IDA grants and near-zero interest rate loans as market financing has largely dried up, the World Bank said. Their average debt-to-GDP ratio of 72% is at an 18-year high and half of the group are either in debt distress or at high risk of it.
Most of the countries in the study are in sub-Saharan Africa, from Ethiopia to Chad and Congo, but the list also includes Afghanistan and Yemen, read the report.
Two-thirds of the 26 poorest countries are either in armed conflicts or have difficulty maintaining order because of institutional and social fragility, which inhibit foreign investment, and nearly all export commodities, exposing them to frequent boom-and-bust cycles, the report said.
“At a time when much of the world simply backed away from the poorest countries, IDA has been their lifeline,” World Bank chief economist Indermit Gill said in a statement. “Over the past five years, it has poured most of its financial resources into the 26 low-income economies, keeping them afloat through the historic setbacks they suffered.”
IDA normally is replenished every three years with contributions from World Bank shareholding countries. It raised a record $93 billion in 2021 and World Bank President Ajay Banga is aiming to exceed that with more than $100 billion in pledges by Dec. 6.
Natural disasters have also taken a greater toll on these countries over the past decade. Between 2011 and 2023, natural disasters were associated with average annual losses of 2% of GDP, five times the average among lower-middle-income countries, pointing to the need for much higher investment, the World Bank said.
The report also recommended that these economies, which have large informal sectors operating outside their tax systems, do more to help themselves. This includes improving tax collections by simplifying taxpayer registration and tax administration and improving the efficiency of public spending.
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IEA should respond to Pakistan’s security concerns with concrete actions: Andrabi
Pakistani Foreign Ministry spokesman Tahir Hussain Andrabi says both Pakistan’s Prime Minister Shehbaz Sharif and Sadyr Japarov, the President of Kyrgyzstan, who visited Islamabad on Thursday, expressed their mutual commitment to a peaceful, stable Afghanistan with a sustainable future for the Afghan people.
Speaking in a press conference on Friday, Andrabi stated that both sides agreed that the Islamic Emirate must fulfill its obligations toward the international community and take concrete steps against terrorist groups to address Pakistan’s legitimate security concerns.
This comes while the Islamic Emirate of Afghanistan has repeatedly emphasized that no terrorist groups operate from Afghan territory and that it will not allow anyone to use Afghan soil against any country.
The Islamic Emirate has also stated that Pakistan’s security concerns are an internal issue of that country, and Pakistan itself must take measures to prevent any security incidents.
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Malaysia’s PM calls peaceful solution to Afghanistan-Pakistan tensions
Malaysian Prime Minister Datuk Seri Anwar Ibrahim has voiced deep concern over escalating tensions between the Afghanistan–Pakistan during a telephone conversation with Pakistan’s Prime Minister Shehbaz Sharif.
In a statement posted on Facebook, Anwar said he emphasized Malaysia’s concerns regarding regional stability and urged all parties to pursue a peaceful resolution through dialogue and diplomatic engagement to prevent further escalation.
His remarks follow media reports indicating heightened tensions between Afghanistan and Pakistan after a series of attacks in October.
During the call, the two leaders also exchanged views on several aspects of Malaysia–Pakistan bilateral relations.
Anwar also briefed Sharif on the ongoing flood situation in Malaysia and similar challenges facing neighboring countries, including Indonesia and Thailand.
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Afghanistan makes major strides in cutting drug trafficking, says Putin
Putin stated that Afghan authorities have “substantially reduced” opium cultivation and are “seriously confronting” drug-related threats from within their borders.
Russian President Vladimir Putin says Afghanistan has taken “active and effective” steps to curb drug trafficking, noting a significant drop in opium production across the country. He made the remarks during an exclusive interview with India Today during his India trip, highlighting what he described as “visible progress” in Afghanistan’s internal security efforts.
Putin stated that Afghan authorities have “substantially reduced” opium cultivation and are “seriously confronting” drug-related threats from within their borders. He added that Afghanistan has also made important advancements in the fight against terrorism.
Responding to a question about why Russia officially recognized the Islamic Emirate, the Russian president said Afghanistan had been engulfed in civil conflict for many years, but the current authorities now hold control over the country. “This is the reality, and it must be acknowledged,” Putin emphasized.
He further noted that maintaining contact with Afghanistan’s leadership is crucial for shaping events inside the country. “If you want influence, you must engage with the people in charge — and that is exactly what we are doing,” he said.
Putin’s remarks come as several regional powers continue to recalibrate their diplomatic strategies toward Afghanistan, focusing on stability, counterterrorism, and economic cooperation.
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