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World Bank approves $85 million in grants for Afghanistan 

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The World Bank has approved two grants totaling almost $85 million from the International Development Association (IDA), as part of a $393 million financial package to help Afghanistan overcome the impact of the COVID-19 pandemic and improve access to clean water, sanitation, and public services. 
 
In a statement issued on Friday, the IDA said COVID-19 has had a severe impact on Afghanistan both socially and economically. 
 
“As they face the pandemic and ongoing conflict, many poor and vulnerable Afghan households subsist on daily earnings, have little or no access to water, sanitation, or healthcare,” the statement read. 
 
In line with this, the IDA has granted $85 million as part of two financial packages, which include additional support from the Afghanistan Reconstruction Trust Fund (ARTF), a multi-donor fund managed by the World Bank on behalf of 34 donors. 
 
The IDA stated the financial packages are made up of $50 million from the association for the Afghanistan Water, Sanitation, Hygiene, and Institutional Support (A-WASH) Project. 
 
The grant will total $200 million, including $150 million from the ARTF and the project will improve access to and quality of water supply in Kabul, Kandahar, and Herat and strengthen the capacity of Afghanistan Urban Water Supply and Sewerage Corporation (AUWSSC) to deliver sustainable services and contribute to national efforts to manage COVID-19 and other disasters.
 
For the Second Additional Financing of the Citizens’ Charter Afghanistan Project (CCAP), the IDA has given $35 million. This grant will total $193 million, including $158 million from the ARTF. 
 
The project aims to improve the delivery of core infrastructure, emergency support, and social services to communities through strengthened Community Development Councils (CDCs). 
 
Through this added financing, the Citizens’ Charter Project will expand its service delivery to 10 new cities across Afghanistan, continue to respond to the COVID-19 crisis among communities, provide critical assistance to Kuchi communities, increase employment through public works, initiate peace projects in rural and urban areas, and continue to strengthen gender equality. 
“Access to clean water, hygiene, and basic services is essential to prevent the transmission of infectious diseases, including COVID-19,” said Henry Kerali, World Bank Country Director for Afghanistan. 
 
“The new grant under the A-WASH project will address the core health and water needs of Afghan communities. The additional grant for the Citizens’ Charter Afghanistan Project will build on the tremendous results in delivering services to communities recent years and expand access for more Afghans,” he said. 

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Pakistan’s kinno exports falter as tensions with Afghanistan continue

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Pakistan’s kinno exports remain far below potential as regional tensions, high freight costs and weak government support continue to choke the citrus trade.

Despite being a leading global citrus producer, Pakistan is expected to export just 400,000–450,000 tonnes of kinno in the 2025–26 season, compared with an estimated capacity of 700,000–800,000 tonnes.

Exports in 2024–25 stood at around 350,000–400,000 tonnes, mainly to Russia, the UAE, Saudi Arabia, Afghanistan, Indonesia and Central Asia. While better fruit quality this season has raised hopes, persistent crossing disruptions—especially with Afghanistan—and transport bottlenecks have offset gains.

Growers say prices have collapsed sharply, forcing panic sales. Rates for large kinno have fallen from over Rs120 per kg early in the season to as low as Rs75, while smaller fruit is selling for Rs35–40 per kg amid weak demand.

Industry leaders warn the crisis is crippling processing units and jobs. More than 100 factories reportedly failed to open this season, with dozens more shutting down as exports stall. Cold storages in Sargodha are nearly full, putting fruit worth millions of dollars at risk of spoilage, while growers fear losses of up to Rs10 billion.

Exporters are urging the government to urgently resolve issues, subsidise logistics, and help access alternative markets, warning that prolonged inaction could devastate farmers, workers and the wider economy.

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Pezeshkian pledges to facilitate Iran-Afghanistan trade

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Iranian President Masoud Pezeshkian has said that Tehran will facilitate trade and economic exchanges with Afghanistan, including easing procedures at customs and local marketplaces.

He made the remarks during a televised interview following his visit to South Khorasan province, which shares a border with Afghanistan.

Pezeshkian, in a separate event addressing local business leaders, highlighted the province’s strategic advantages, citing its rich mineral resources, proximity to neighboring countries such as Afghanistan and Pakistan, and access to the ocean via the Chabahar port. He described the region as “a golden opportunity not found everywhere,” emphasizing its potential for economic growth and cross-border commerce.

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Afghanistan-Kazakhstan banking ties discussed in Kabul meeting

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A Kazakh delegation led by the Deputy Minister of Finance of Kazakhstan met with Sediqullah Khalid, First Deputy Governor of Da Afghanistan Bank, to discuss ways of strengthening banking and economic cooperation between the two countries.

According to a statement issued by Da Afghanistan Bank, Khalid said the central bank is keen to establish regular and effective banking relations with Kazakhstan as part of broader efforts to expand bilateral trade.

He noted that enhanced banking cooperation would help facilitate trade, investment, and wider economic interaction between Afghanistan and Kazakhstan, while also contributing to financial stability at the regional level.

Members of the Kazakh delegation also emphasized the importance of developing banking and economic ties and expressed their readiness to expand joint cooperation.

The two sides further agreed to establish technical committees from both countries to hold expert-level discussions and advance practical steps for cooperation.

 
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