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Flow of US dollars into Afghanistan ‘weakens Pakistan’s foreign exchange reserves’
The chairman of Pakistan’s Forex Association says that over the past few months, about $2 billion dollars has entered Afghanistan through the country's border, both legally and illegally.
Speaking at a press conference on Tuesday, Malik Bostan said that in the past, millions of dollars flowed into Pakistan from Afghanistan and was exchanged in the country, but this trend has not reversed.
“About two billion dollars have gone to Afghanistan from Pakistan in the form of official and unofficial trade, abuse of transit trade, smuggling and through the borders, and this has weakened Pakistan's foreign exchange reserves and caused a heavy decrease in the value of the currency,” said Bostan.
According to him, Pakistan's economy is suffering irreparable damage due to Afghanistan's transit trade, which has grown significantly.
“In Afghanistan, due to economic sanctions, the bank account and system are frozen, so our trade with Afghanistan is not done through banking channels, but in cash,” he said.
“Only about 15,000 people go to Afghanistan every day and each of them brings $1,000 into this country, which is a total of $15 million dollars entering Afghanistan every day, and this has become uncontrollable,” he added.
According to him, at the beginning of the Islamic Emirate's rule in Afghanistan, Pakistan's foreign exchange reserves were $22 billion dollars and its import bill was $4.5 billion dollars.
This is while the border police of Herat province arrested two people who wanted to import $80,000 into Iran.
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Suhail Shaheen meets with Chinese ambassador to Qatar
The head of the Islamic Emirate of Afghanistan’s (IEA) political office in Doha, Suhail Shaheen, met with China’s ambassador to Qatar late Monday for talks on bilateral relations, good neighborliness, and trade and investment opportunities between the two countries.
“About the Wakhan road, the export of Afghanistan's fresh fruit to China, the reconstruction of cold stores, China's assistance in the field of medical equipment to the Ministry of Health and good neighborliness between the two countries were discussed,” Shaheen said in a voice message.
China and the Islamic Emirate have been rapidly expanding relations in recent months.
Experts, meanwhile, have said that other countries need to engage with the IEA, as China is doing, in order for Afghanistan to come out of isolation.
Shaheen also met with Katharina Ritz, the head of the International Committee of the Red Cross (ICRC) delegation to Afghanistan.
He discussed numerous issues including humanitarian assistance, health sector challenges and climate change.
Both sides emphasized that ICRC activities need to be expanded, considering the needs of the people.
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IFRC reports over half of Afghanistan’s population needs urgent humanitarian aid
Afghanistan ranks among the most vulnerable countries globally to climate change and disaster risks
The International Federation of Red Crescent (IFRC) has reported that Afghanistan continues to face prolonged and complex humanitarian crises.
IFRC said in a report published on Tuesday, that about 23.7 million people, more than half of Afghanistan’s population, are in urgent need of humanitarian aid.
According to the IFRC, natural disasters, the growing impact of climate change, population displacement, economic challenges, and food insecurity are the main factors contributing to Afghanistan’s ongoing humanitarian crisis.
Afghanistan ranks among the most vulnerable countries globally to climate change and disaster risks.
The country is also prone to earthquakes, with nearly 400 tremors recorded in the last three years, including significant quakes, such as the 6.3 magnitude in Herat Province in October last year.
The compounding effects of disasters in the country have exacerbated the already fragile situation in Afghanistan, the IFRC’s report read.
These successive disasters have pushed more Afghans into poverty and heightened their vulnerability.
In addition, Afghanistan’s economic crisis is widespread, with more than half of households experiencing an economic shock.
The country’s economy is heavily dependent on foreign aid and remittances, which have declined significantly since the political change in 2021.
This has resulted in high levels of unemployment, challenging people’s coping mechanisms and thwarting the already fragile economy’s ability to adapt to shocks, the report read.
The IFRC said more than 85 percent of the country’s population is now living below the poverty line.
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Maldives recalls envoy to Pakistan over meeting with Afghanistan envoy
The island nation’s foreign ministry said the much publicized meeting had not been sanctioned by the government
The Maldives government has recalled its top diplomat in Pakistan after he had an unauthorized meeting with an Islamic Emirate of Afghanistan envoy in Islamabad.
The island nation’s foreign ministry said the much publicized meeting between the Maldives High Commissioner Mohamed Thoha and IEA envoy Sardar Ahmad Shakeeb on Friday had not been sanctioned by the government.
Maldives media reported that the foreign ministry stated: “Consequently, appropriate action has been taken by the government of Maldives.”
Thoha’s name has also been removed from the website of the Maldives mission in Islamabad, and an official source told AFP that he had been recalled.
Since regained control of Afghanistan in August 2021, no country has yet officially recognized the government.
However, the IEA has been making inroads into the diplomatic arena and has official missions now stationed in a number of regional countries.
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