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World Bank approves COVID-19 aid package of $380m for Afghanistan

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The World Bank has approved a financial package of $380 million to help Afghanistan cushion the economic impact of the COVID-19 pandemic on Afghan families. 

The money will go towards helping households, support critical food supply chains, and provide emergency support to farmers.

The aid package, from dozens of donors, is made up of two grants that will go towards specific projects. 

“The living conditions of millions of Afghan families have severely worsened due to the impacts of the COVID-19 outbreak,” said Henry Kerali, World Bank Country Director for Afghanistan. 

“These grants will help the Government of Afghanistan address the urgent needs of most households and ensure that Afghan farmers can continue to produce food at a time when imports and exports are severely disrupted. This will extend economic opportunities and create jobs for the wider rural population,” he said.

A $280 million grant will fund the COVID-19 Relief Effort for Afghan Communities and Households (REACH) Project. 

This project will benefit some 2.9 million households across Afghanistan. 

The second grant, of $100 million, will fund the Emergency Agriculture and Food Supply Project (EATS). 

The project aims to improve food security by increasing local food production and strengthening critical commercial food supply chains, especially wheat as the staple crop for over 70 percent of the Afghan population. 

The project will also provide short-term employment in rural areas in the development of productive assets such as irrigation schemes. 

In rural areas, measures to prevent the spread of COVID-19 have disrupted farming, leaving Afghan farmers unable to sow their crops on time, while in urban areas food prices are rising with shortages of food supply becoming more urgent. 

According to the World Bank,  the COVID-19 Relief Effort for Afghan Communities and Households Project will be implemented through the Ministry of Rural Rehabilitation and Development (MRRD), the Independent Directorate for Local Governance (IDLG), and the Kabul Municipality. 

 

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Afghanistan’s finance minister travels to Iran for official visit

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Afghanistan’s Minister of Finance, Mohammad Nasir Akhund, has travelled to Iran at the head of a delegation following an official invitation from Iran’s Minister of Agriculture, the Ministry of Finance said.

During the visit, Akhund is expected to meet with various Iranian officials to discuss bilateral economic, trade, customs and other related issues.

The visit will also include discussions on key topics for an upcoming meeting of the joint economic commission between Afghanistan and Iran.

 
 
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Newly rehabilitated power line to benefit 60,000 consumers in Faryab

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Afghanistan’s Deputy Prime Minister for Economic Affairs, Mullah Abdul Ghani Baradar, on Saturday inaugurated the rehabilitated 110-kilovolt (kV) power transmission line connecting Maimana and Andkhoy in Faryab province.

According to the Deputy Prime Minister’s Office for Economic Affairs, the completion of the project will provide around 60,000 consumers with a more stable and reliable electricity supply.

Speaking at the inauguration ceremony, Baradar said the project would help meet local electricity needs, expand industrial activities and contribute to the region’s economic and social development.

He said the Islamic Emirate of Afghanistan (IEA) had implemented several electricity generation and transmission projects in a relatively short period, reducing reliance on imported electricity and power outages while creating new opportunities for industrial growth.

Baradar also said several major electricity infrastructure projects would be implemented over the next year to ensure a sustainable power supply, adding that the country’s existing electricity capacity would increase several times.

Addressing Afghanistan’s security situation, Baradar said the country was currently experiencing a level of security that he claimed was unmatched in most countries. He added that foreign tourists and visitors had continued to travel to Afghanistan since the IEA returned to power, including to remote areas of the country.

He rejected security-related concerns raised by some countries over travel to Afghanistan, describing them as unfounded and politically motivated. He called on the international community to strengthen meaningful engagement with Afghanistan based on realities on the ground.

Baradar also invited domestic and foreign investors to invest in Afghanistan, saying a secure and suitable environment had been created for large- and medium-scale investments.

 

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US to resume flights after air traffic network failure sparks chaos

More than 6,600 flights were canceled and 8,600 delayed, with another 1,500 already canceled for Sunday, according to FlightRadar24. Aviation analysts said the four-hour nationwide grounding could disrupt airline schedules for days.

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The FAA lifted a nationwide ground stop on Friday after a communications failure at air traffic control centers caused chaos at ​US airports and triggered the longest shutdown since the September 11, 2001, attacks.

Transportation Secretary Sean Duffy said US airspace reopened at 8:15 p.m. Eastern Time (0115 GMT), ‌but warned that departures would resume gradually and it would take time for airlines to restore normal operations, Reuters reported.

“It’s going to be slow,” Duffy told reporters at the White House.

More than 6,600 flights were canceled and 8,600 delayed, with another 1,500 already canceled for Sunday, according to FlightRadar24. Aviation analysts said the four-hour nationwide grounding could disrupt airline schedules for days.

Duffy said tens of thousands of passengers were stranded at airports around the country. Duffy said he ​and Homeland Security Secretary Markwayne Mullin had met with President Donald Trump in the Oval Office to discuss the outage.

The failure is the latest and most dramatic sign of ​strain on a US air traffic control system beset by aging technology, equipment and communications problems and a shortage of several thousand controllers.

Duffy said the ⁠trouble began at 3:36 p.m., when air traffic control centers experienced instability in radar and communications systems.

“Our switches, our routers actually got overloaded with data and they started to give us inconsistencies ​in the data from those routers and because of that we shut the system down,” Duffy said, adding that at no stage did they completely lose radar or communications and they were able to safely land thousands ​of planes.

Duffy said the immediate problem had been fixed and that flying was safe, but warned that a broader overhaul of the aging air traffic control system was needed to prevent similar failures.

$50 BILLION AVIATION OVERHAUL

Duffy blamed Congress for failing to fund a new system that he said could prevent such outages, and called for $50 billion to modernize it.

Earlier on Friday, before the outage, the White House and Department of Transportation had urged Congress ​to approve $30.1 billion to upgrade the nation’s aging airports and air traffic control infrastructure.

“What we have is an incredibly old air traffic control system,” Duffy said.

“Give us the money to fix it.”

Homeland ​Security Secretary Mullin said there was “zero evidence” so far that the outage resulted from a cyberattack or a rogue AI system, though investigators had not ruled out either possibility.

“It appears this was mechanically driven, however, we’re still ‌looking,” Mullin said.

The ⁠National Security Agency was working with the Department of Homeland Security on the investigation, he added.

The outage appeared to be affecting a telecommunications network overseen by L3Harris Technologies, according to two airline officials. The network handles critical radio frequencies used by air traffic controllers to communicate with pilots. L3Harris did not respond to a request for comment.

PAIN NOT OVER FOR PASSENGERS

Though the ground stop was lifted, the disruption for passengers was far from over. From Boston to Seattle and New York to Los Angeles, passengers crowded departure halls and airline desks as delays and cancellations mounted and aircraft ​remained parked at gates.

Thousands of passengers faced being ​stranded overnight. Edward Kargbo, 50, from West Chester, ⁠Pennsylvania, had been scheduled to take a 9 p.m. Ethiopian Airlines flight to Lomé, Togo. Instead, he planned to spend the night at the airport before a rescheduled flight at 6 a.m. on Saturday.

“I have to squat the night here,” he said. “I’m stranded.”

Louise Maher, 47, was also caught up ​in the disruption at Newark after her British Airways flight to London was caught up in the aviation meltdown.

“I might cry at some ​point but not yet,” she ⁠said.

US airlines will not be required to provide compensation to stranded passengers because the carriers were not responsible for the FAA system failures.

The only other nationwide ground stop since the September 11 attacks came in January 2023, when the FAA halted domestic departures for about 90 minutes.

Investors were already pricing in a financial hit to airlines. Shares of American Airlines (AAL.O), opens new tab, United Airlines (UAL.O), opens new tab and Delta Air Lines fell between 1% and ⁠2% in after-hours ​trading, while JetBlue Airways dropped about 3%.

American Airlines said it was prioritizing flights to smaller cities outside its major ​hubs and international destinations to position aircraft and crews for a faster recovery.

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