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COVID-19 wreaks havoc on livelihoods of Afghans: World Bank report 

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Photo credit: World Bank
Last Updated on: October 25, 2022

COVID-19 will have a profound effect on Afghanistan’s economy which is likely to contract by between 5.5 percent and 7.4 percent this year, said the World Bank in its latest biannual Afghanistan Development Update. 

According to the World Bank, this will exacerbate poverty and lead to a sharp decline in government revenue. 

“The COVID-19 crisis is having a devastating impact on the livelihoods of Afghans while undermining the government’s revenue collection and its capacity to finance comprehensive programs to save lives, protect the poor, and jumpstart the economy,” said Henry Kerali, World Bank Country Director for Afghanistan.

The report titled Surviving the Storm was released on Wednesday and examines the coronavirus impacts on Afghanistan’s economic development. 

As stated in the report, COVID-19 has hit Afghanistan in the midst of a difficult political transition, an intensifying conflict, and significant uncertainty regarding future grant support. 

“While a peace agreement has been signed between the US and the Taliban, laying the foundations for negotiation of a comprehensive political settlement, Taliban attacks on Afghan security forces have intensified,” the report states. 

It also points out the future of international assistance remains in question, while the US has substantially reduced troop numbers this year, with further reductions likely. 

Current grant pledges expire at the end of 2020, and international partners are due to consider future aid commitments at an international conference in November. 

“Without progress towards a sustainable peace and commitments to continued grant support from international partners, medium-term prospects appear increasingly grim,” read the report.  

The report warns that the proportion of Afghans living in poverty may increase from 55 percent in 2017 to between 61 percent and 72 percent in 2020 because of declining incomes and the rising cost of food. The report finds that economic activity plummeted in the first half of 2020 as lockdowns and social distancing measures to curb COVID-19 negatively impacted the industry and service sectors. 

To address the impacts of the crisis, the report recommends that tightly constrained public expenditures be carefully prioritized to protect the most vulnerable and limit long-term economic damage. 

The report highlights the need for continued financial support from development partners. 

“Short-term measures are needed to support households through the current crisis, while improvements in the business regulatory environment and maintaining the core functions of government will pave the way for longer-term recovery,” said Kerali. 

“Ongoing support from development partners will help finance critical government operations and restore private sector confidence. The World Bank is working closely with the Government of Afghanistan both to implement the short-term response and lay the foundations for longer-term recovery,” Kerali added.

For full report CLICK HERE 

https://documents.worldbank.org/en/publication/documents-reports/documentdetail/132851594655294015/afghanistan-development-update-surviving-the-storm 

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Kazakhstan eyes rare metals mining projects in Afghanistan and Rwanda

As Kazakhstan looks to expand its global mining footprint, the exploration of rare metals in Afghanistan and Rwanda marks a significant step towards diversifying its mining interests.

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Kazakhstan is actively exploring mining opportunities in Afghanistan and Rwanda, focusing on rare metals, as part of a broader strategy to expand its resource development portfolio. According to a report by Kazinform, Tau-Ken Samruk, Kazakhstan’s national mining company, is conducting laboratory studies on mineral samples obtained from both countries.

The announcement was made by Iran Sharkhan, Kazakhstan’s Vice Minister of Industry and Construction, during the Geoscience & Exploration Central Asia 2026 event. Sharkhan emphasized the substantial resource potential in Afghanistan and Rwanda, noting that current efforts are directed towards evaluating the legal and regulatory frameworks in these countries, as well as verifying the geological prospects before proceeding with potential mining operations.

The laboratory testing, which is taking place at Tau-Ken Samruk’s facilities and additional labs in Kazakhstan’s Karaganda region, involves comprehensive analysis of base metals, rare metals, and rare earth elements from the two countries. These tests will determine the viability of large-scale mining operations in the future.

Sharkhan further indicated that if the laboratory results confirm promising geological findings, more detailed plans for mining projects will be disclosed in the coming months.

The report also highlighted that Kazakhstan’s major mining companies have already invested nearly 150 billion tenge into scientific research in the country’s mining sector, reinforcing the nation’s commitment to advancing its mining industry on both the local and international stages.

As Kazakhstan looks to expand its global mining footprint, the exploration of rare metals in Afghanistan and Rwanda marks a significant step towards diversifying its mining interests.

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Tripartite agreement to launch new Russia–Turkmenistan–Afghanistan transit corridor

The agreement is scheduled to be finalized on the sidelines of the Kazan Forum 2026, according to Russian media reports.

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A tripartite agreement to establish a new trade and transit corridor linking Russia’s Republic of Tatarstan, Turkmenistan, and Afghanistan is expected to be signed in May, opening a fresh route for the movement of goods between Russia and Afghanistan.

The agreement is scheduled to be finalized on the sidelines of the Kazan Forum 2026, according to Russian media reports. The proposed corridor is seen as a strategic alternative to existing routes, particularly the North–South Corridor, which has faced disruptions due to ongoing tensions in Iran.

Rustam Khabibullin, head of the Russian Business Center in Afghanistan, said the new route could significantly streamline cargo transport between Russia and Afghanistan. He added that the corridor may also attract companies from Europe and Asia seeking more stable and reliable logistics options.

Afghanistan is considered a key supporter of the initiative. Once operational, the corridor is expected to facilitate direct shipments from Tatarstan to Afghanistan, reducing reliance on indirect transit routes through Central Asia.

The development has been welcomed by members of Afghanistan’s private sector, who say that expanding transit infrastructure and logistics networks could boost trade and contribute to economic growth.

In recent years, Afghanistan has emerged as an important market for Tatarstan’s halal products. According to reports, Afghan imports of halal goods from Tatarstan reached $51.7 million in 2025, marking a notable increase compared to the previous year. However, much of this trade has so far been conducted indirectly via third countries.

The planned corridor is expected to enhance direct trade links and improve efficiency in regional commerce.

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Russia backs Uzbekistan–Afghanistan trade hub, praises regional economic cooperation

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A senior Russian diplomat has praised Uzbekistan’s efforts to boost regional trade and economic cooperation, highlighting the strategic importance of a new international trade hub near the Afghan border.

Mikhail Galuzin, Deputy Minister of Foreign Affairs of the Russia, made the remarks to media representative covering an international conference titled “Uzbekistan – Russia: Strategic Partnership in the Eurasian Space,” at the Termez International Trade Center in southern Uzbekistan.

Speaking to media representatives, Galuzin commended the development of the Surkhandarya region, describing it as a “unique oasis” with significant economic potential. He said the Termez International Trade Center—located in a free trade zone—represents a major step forward in strengthening trade links, particularly between Uzbekistan and Afghanistan.

“The project deserves the highest praise,” Galuzin said, adding that the center is expected to play a key role in expanding trade and economic ties and advancing broader strategic partnerships across the Eurasian region.

The trade center was established under a resolution by Shavkat Mirziyoyev and is designed to facilitate commerce by providing a platform for Uzbek and Afghan entrepreneurs to showcase goods and investment projects. According to Galuzin, such initiatives are already contributing to increased trade turnover, with Afghanistan currently ranking among Uzbekistan’s top trading partners.

He also noted growing interest from Russian regions and businesses in participating in the project, calling for further expansion of cooperation among the countries involved.

Galuzin emphasized that platforms like the Termez trade hub and international conferences play a vital role in building direct economic connections, which in turn help create stable supply chains and open new opportunities for trade and investment across the region.

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