The reporting period of 01–15 August 2025 witnessed significant political, economic, and humanitarian developments in Afghanistan. Domestically, the caretaker government announced ambitious infrastructure and energy initiatives, including a $10 billion agreement with Azizi Energy to generate 10,000 megawatts of power, the inauguration of the long-delayed Pashdan Dam, and approval of Ghazni city’s 20-year master plan. Simultaneously, the Taliban introduced a new framework to regulate the mining sector, while farmers in Kandahar voiced concerns over limited market access for agricultural exports. The fourth anniversary of the Islamic Emirate’s return to power was marked with state-backed celebrations amid renewed criticism from Human Rights Watch on women’s rights and humanitarian conditions.
Externally, Afghanistan’s relations with the United States, Pakistan, and regional actors remained tense. The US reintroduced the Afghan Adjustment Act while raising tariffs on Afghan exports and highlighting human rights violations in its annual report. Strained ties with Pakistan were evident through recurring border closures, deportations, and reports of a Pakistani airstrike in Nuristan, though trilateral cooperation efforts with China and Pakistan continued. Relations with Tajikistan and Iran were dominated by disputes over electricity imports, narcotics trafficking, and migrant treatment.
Meanwhile, the mass deportation crisis escalated, with over 1.5 million Afghans forcibly returned from Iran and Pakistan, raising acute humanitarian concerns, especially for women and children. Regional initiatives, such as Qatar’s offer of 1,800 job placements for Afghan returnees and Japan’s continued support, highlighted both opportunities and limitations in international engagement. Collectively, these developments underscore Afghanistan’s fragile balance between ambitious domestic projects, strained external relations, and deepening humanitarian challenges.
