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World Bank predicts Afghan economic growth 3.3% this year
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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Human traffickers should be sentenced to 1 to 3 years in prison: IEA leader
The Leader of the Islamic Emirate has issued a decree instructing the Ministry of Interior Affairs to prevent human trafficking and to arrest and refer culprits to military courts.
The decree containing six articles says that that military courts should sentence human traffickers to one year in prison for the first time, two years if repeated for the second time and three years if repeated for the third time.
The ministries of Hajj, information, telecommunications, borders, propagation of virtue, as well as religious scholars are asked to inform the public about the dangers and adverse consequences of travelling through smuggling routes.
The decree comes as the rate of migration has increased following the political change in Afghanistan in 2021.
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Eight Afghan migrants die as boat capsizes off Greek island
Eight Afghan migrants died after a speedboat carrying migrants capsized off Greece's eastern island of Rhodes on Friday, the Associated Press reported.
Greek authorities said that the capsizing was the result of the boat’s maneuvering to evade a patrol vessel.
A total of 18 migrants — 12 men, three women and three minors — all Afghan nationals, were rescued, Greece's coast guard said Saturday. The dead were also from Afghanistan, it said.
Some migrants remained hospitalized, with one in critical condition, authorities said.
Two Turkish citizens, ages 23 and 19, were arrested as the suspected traffickers. The boat sank after capsizing, the coast guard said.
The sinking off Rhodes was the second deadly incident involving migrants in the past week.
Seven migrants were killed and dozens were believed missing after a boat partially sank south of the island of Crete over the weekend — one of four rescue operations during which more than 200 migrants were rescued.
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Norwegian Chargé d’Affaires meets with IEA deputy foreign minister
Welcoming the diplomat’s visit to Kabul, Stanikzai underscored the importance of political relations between Afghanistan and Norway, the foreign ministry said in a statement.
The Norwegian Chargé d’Affaires for Afghanistan, Per Albert Ilsaas, on Saturday met with IEA’s Deputy Foreign Minister for Political Affairs, Sher Muhammad Abbas Stanikzai, in Kabul.
Welcoming the diplomat’s visit to Kabul, Stanikzai underscored the importance of political relations between Afghanistan and Norway, the foreign ministry said in a statement.
In addition to focusing on bilateral political, humanitarian, and other pertinent issues, the two sides expressed hope that continued engagement would lead to constructive solutions to related issues.
This comes two weeks after the Foreign Ministry Spokesman Abdul Qahar Balkhi expressed disappointment regarding the decision by the Norwegian government to downgrade diplomatic relations with Afghanistan.
Balkhi said in a post on X that such decisions should not be linked with internal affairs of other countries.
“Diplomatic engagement is most effective when it fosters mutual understanding and respect, even amidst differing viewpoints,” he stated.
“Access to consular services is a fundamental right of all nationals. We strongly urge all parties to prioritize this principle in the spirit of international cooperation,” he added.
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