Vienna Conference for a Democratic Afghanistan Commences in Austria

The report highlights the depreciation of the Afghani currency, which has led to rising prices of essential goods and food items.

The report, published on Monday, acknowledges that while Afghanistan experienced economic growth in 2023-2024, widespread poverty, unemployment, and limited financial resources continue to leave millions in a vulnerable state. Weak purchasing power remains a significant barrier to economic stability.

In December 2024, the afghani depreciated for the third consecutive month, falling 12 percent between November 2024 and January 2025. The exchange rate dropped to 74.8 afghanis per US dollar in January 2025, compared to 67.1 afghanis in October 2024.

In response, Afghanistan’s central bank injected $100 million into the market, but the downward trend of the currency persisted. The depreciation was exacerbated by the suspension of U.S. aid, prompting the Taliban to tighten control over the currency market. Reports suggest that Taliban authorities deployed armed personnel in Kabul’s Sarai Shahzada exchange market to curb further instability.

Despite economic hardships, government revenue collection in 2024 increased by 11.5 percent compared to the previous year. However, declining state revenues in other sectors pose risks to financial stability.

Afghanistan’s imports surged by 40 percent in 2024, driven by increased purchases of food, chemicals, minerals, and transport equipment. Meanwhile, the trade deficit widened by 8 percent in December 2024, reaching $926 million, primarily due to declining exports.

Afghanistan’s exports fell by 19.5 percent in December 2024 to $191 million, with food exports declining by 25 percent and textile exports by 23 percent, largely due to harsh winter conditions affecting production and trade.

The World Bank identified Iran as Afghanistan’s largest trading partner in 2024, accounting for 30 percent of total imports. Other major trade partners included United Arab Emirates, Pakistanand China.

Iranian officials reported that bilateral trade between Iran and Afghanistan exceeded $4 billion, marking the highest trade volume between the two countries in the past two decades.

The World Bank warned that Afghanistan’s economy remains fragile, citing the sharp decline in foreign aid, economic isolation, and uncertain financial policies. A further reduction in international assistance could significantly weaken overall demand and increase economic pressures.

The United States has suspended its humanitarian aid to Afghanistan, raising concerns over a potential humanitarian crisis. Observers caution that if aid remains suspended or stops entirely, Afghanistan could face a severe economic and social catastrophe, with the UN estimating that 22 million Afghans require urgent humanitarian assistance.

The World Bank stressed the need for economic reforms, greater financial transparency, and sustainable policies to reduce Afghanistan’s dependence on foreign aid and imports. Without such measures, the country risks further economic deterioration and instability.

According to multiple sources, Haqqani remains outside Afghanistan due to his dissatisfaction with the unilateral decisions of Taliban leader Hibatullah Akhundzada.

On January 21, the Taliban announced that Haqqani and Abdul Haq Wasiq, head of the Taliban’s intelligence agency, had travelled to the United Arab Emirates (UAE). However, Haqqani has yet to return, and the Taliban has provided no updates on his recent activities.

Sources suggest that Haqqani, a key figure within the Haqqani Network, is increasingly frustrated with Akhundzada’s leadership, particularly his hardline policies on women’s education and governance.

Additionally, Abbas Stanekzai, the Taliban’s Deputy Foreign Minister, has reportedly taken refuge in the UAE due to his criticism of Akhundzada’s restrictive policies on women’s rights.

According to reports, Haqqani is particularly concerned about Akhundzada’s efforts to consolidate power, including the transfer of elite Taliban special forces and military assets to Kandahar. 313 Badar Army Corps, previously under Haqqani Network influence, was relocated to Kandahar, Akhundzada’s stronghold. Azizuddin, Haqqani’s close ally and former Badar commander, was removed from his position. Kandahar’s security chief, a key Haqqani associate, was dismissed and replaced by Mawlawi Abdul Ahad Talib, one of Akhundzada’s trusted men.

Observers see these moves as Akhundzada’s attempt to tighten control over the Taliban’s security apparatus and reduce Haqqani’s influence within the group.

Sources indicate that Sirajuddin Haqqani is currently residing in Dubai, reportedly with his Arab mother. During his stay, he also travelled to Saudi Arabia for Umrah, despite having already performed Hajj in June 2024.

Meanwhile, Mullah Baradar, the Taliban’s Deputy Prime Minister for Economic Affairs, has travelled to Doha for a one-month medical treatment, according to a UN Security Council report on February 15.

The prolonged absence of senior Taliban officials has fuelled speculation of growing internal rifts within the group.

Earlier this year, the UN Security Council granted travel exemptions to three high-ranking Taliban officials, allowing them to travel to Saudi Arabia and the UAE for diplomatic and religious purposes.

According to the statement, five individuals, including one woman, were flogged in Jaghori district of Ghazni. In addition to corporal punishment, some were sentenced to one to five years in prison.

Three men were accused of theft and same-sex relations and a man and a woman were convicted of “running away from home and kidnapping.” Two individuals were sentenced to one year and six months in prison, receiving 35 lashes. Three others were sentenced to two to five years in prison and received 30 to 39 lashes.

Residents of Jaghori shared footage with Afghanistan International, stating that the Taliban forced locals to witness the public floggings. Reports indicate that the Taliban shut down the Ghujor market to draw crowds to the punishment site. Images show a large gathering in an open field where the sentences were carried out.

In a separate statement, the Taliban Supreme Court reported the flogging of four individuals, including two women, in Farkhar district, Takhar. The group accused them of extramarital sexual relations. Three individuals received one year and six months in prison and 39 lashes. The fourth person was sentenced to five years in prison and 39 lashes.

The Taliban Supreme Court frequently announces public floggings across Afghanistan. Human rights organisations and the United Nations have repeatedly called for an end to corporal punishment, condemning it as inhumane and unlawful under international law.

Speaking at the second roundtable discussion of scholars from Iran, Afghanistan, and Russia in Tehran, Mousavi criticised the Taliban’s monopolisation of power and its governance based solely on Hanafi jurisprudence and Pashtun ethnicity.

According to IRNA news agency, Mousavi outlined three possible scenarios for Afghanistan’s future: continuation of the status quo which means the Taliban retains power without major internal changes. change in governance style that the Taliban modifies its approach, allowing for an inclusive government and behavioural reforms. And the Taliban is overthrown due to rebellion, civil war, or foreign intervention.

Mousavi suggested that the prospect of the Taliban gaining international recognition remains low, citing internal instability, ethnic divisions, and restrictions on women’s rights as major obstacles.

The former Iranian Ambassador to Tajikistan warned that terrorist groups in Afghanistan, including ISIS and Al-Qaeda, pose a serious regional security threat. He argued that instability in Afghanistan directly impacts neighbouring countries, limiting broader regional cooperation.

While regional governments do not wish to see a civil war in Afghanistan, Mousavi stated that the Taliban’s failure to fulfil its promises—particularly regarding inclusive governance, women’s rights, and girls’ education—has further alienated both Afghan society and the international community.

Mousavi also referenced a UN Security Council report highlighting the presence of terrorist groups in Afghanistan and noted that the International Criminal Court (ICC) has called for the arrest of the Taliban’s leader and chief justice over systematic human rights violations.

He concluded that Afghanistan’s long-term stability hinges on the Taliban’s ability to integrate diverse ethnic groups into governance and address major human rights concerns. However, he warned that without these changes, continued instability, regional insecurity, and potential foreign intervention remain real threats.

A letter from the Taliban’s Ministry of Foreign Affairs, leaked by the hacker group TalibLeaks, shows that the MoI has accused the group’s diplomatic missions in Pakistan of violating visa regulations by granting long-term visas to Pakistani citizens in breach of official guidelines.

The Taliban consulate in Quetta, the capital of Pakistan’s Balochistan province, allegedly issued long-term visas to 800 to 1,000 Pakistani citizens, who later applied for extensions in Kandahar.

In response, the Taliban’s Ministry of Foreign Affairs has instructed all its diplomatic missions in Pakistan to issue only single-entry visas instead of business visas to Pakistani citizens.

The letter also warned that issuing long-term visas to Pakistanis could undermine the Taliban’s diplomatic credibility and devalue Afghan visas internationally.

Despite the Taliban’s lenient visa policies for Pakistanis, Pakistan has significantly restricted visa issuance for Afghans. Online visa applications to Pakistan cost $20, but there is no guarantee of approval. Many Afghan applicants face rejection, and the Pakistani government does not refund the fee for declined applications. Travel agencies in Kabul report that many visa applications are rejected arbitrarily despite payment.

Meanwhile, the process of obtaining Pakistani visas in Afghanistan has become a hub of corruption, with reports indicating that visas are sold on the black market for up to $1,500. Allegedly, some Taliban members are involved in this corruption, yet the group has not raised concerns with Islamabad.

Afghan refugees in Pakistan face increasing visa restrictions. Previously, they could extend their visas for six months, but the new policy only allows extensions for one month. Under Pakistan’s latest regulations, Afghans cannot renew their visas beyond a month, leaving many in legal limbo.