Pakistan spent $1 billion on Afghan reconstruction since September 2021 – state media

Drivers stand in front of their trucks loaded with relief materials for the distressed Afghan people before crossing through the Chaman border on December 17, 2021. (AFP/File)
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Updated 03 August 2022
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Pakistan spent $1 billion on Afghan reconstruction since September 2021 – state media

  • Afghanistan has been facing massive economic challenges since international forces left last year
  • Pakistan has been trying to help the neighboring state despite its own cash-strapped economy

ISLAMABAD: Pakistan has spent $1 billion to help the Taliban administration in neighboring Afghanistan since the withdrawal of international forces from the war-torn country in August last year, reported the state-owned APP news agency on Wednesday.

Afghanistan has been facing massive economic challenges for about a year, creating concerns among Pakistan and other neighboring countries of another humanitarian disaster in the region.

Pakistan has also warned the international community of fresh exodus of Afghan nationals who are finding it difficult to deal with the financial challenges under the new administration in Kabul which has not been recognized by countries around the world.

“Pakistan has so far contributed $1 billion to support the reconstruction of war-ravaged Afghanistan by building hospitals, schools and roads to manifest its commitment for a prosperous Afghanistan and falsify the impression of using the country as its proxy state,” the APP said in its report.

It added that Islamabad had sent over 14,945 tons of humanitarian assistance to the neighboring country since September 2021.

“In 2019, Afghanistan’s second-largest Jinnah Hospital with 200-bed capacity was opened in Kabul costing more than $24 million,” the report said, adding: “In 2020, Pakistan’s Higher Education Commission (HEC) announced around 3,000 scholarships worth Rs. 1.5 billion for Afghan students to study in different institutes of Pakistan in various fields, including medicine, engineering, agriculture, management and computer science.”

Despite its limited resources, the APP said, Pakistan was providing $500 million for capacity building in various Afghan sectors.

It added that Pakistan and China were also trying to extend the economic corridor connecting the two countries to Afghanistan.

“Our relief efforts are a humble testament to the fraternal bonds that exist between the two countries,” the report quoted foreign minister Bilawal Bhutto-Zardari as saying.


Pakistan reviews austerity measures amid Middle East crisis, urges strict nationwide implementation

Updated 11 March 2026
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Pakistan reviews austerity measures amid Middle East crisis, urges strict nationwide implementation

  • Deputy Prime Minister Ishaq Dar chairs review meeting of austerity steps
  • Officials briefed on salary cuts, school closures, four‑day week, petrol conservation

ISLAMABAD: Pakistan’s government on Wednesday assessed progress on a sweeping set of austerity measures introduced to mitigate the country’s economic strain from sharply rising global oil prices and supply disruptions linked to the ongoing war in the Middle East.

Prime Minister Shehbaz Sharif this week announced a series of austerity steps, including a four‑day work week for government offices, requiring 50  percent of staff to work from home, cutting fuel allowances for official vehicles by half, grounding up to 60  percent of the government fleet and closing all schools for two weeks to conserve fuel amid the global oil crisis.

The measures were unveiled in response to global oil market volatility triggered by the conflict involving the United States, Israel and Iran, which has disrupted supply routes such as the Strait of Hormuz and pushed crude prices sharply higher, straining Pakistan’s heavily import‑dependent energy sector.

“The meeting stressed the importance of strict and transparent adherence to the austerity measures, promoting fiscal responsibility and prudent use of public resources,” Deputy Prime Minister and Foreign Minister Senator Mohammad Ishaq Dar said in a statement.

He was chairing a meeting of the Committee for Monitoring and Implementation of Conservation and Additional Austerity Measures, constituted under the directions of the PM, bringing together federal and provincial officials to review execution of the broad cost‑cutting plan. 

Dar emphasized the government’s commitment to enforcing the PM’s austerity steps nationwide. The committee’s review also covered reductions in departmental expenditure, deductions from salaries of senior officials earning over Rs. 300,000 ($1,120), and coordination with provincial administrations to ensure uniform implementation of the plan.

Participants at the meeting reiterated that all ministries and divisions must continue strict monitoring and reporting, with transparent oversight mechanisms, as Pakistan navigates the economic pressures from the prolonged Middle East crisis and its fallout on global energy and trade markets.