Business
Pay cuts for Ghani and ministers, but pay rises for govt workers
The Ministry of Finance has finally agreed to increase the salaries of government employees, while the president and ministers will all take a pay cut.
The increased budget spends for government employees has been requested repeatedly by the Wolesi Jirga’s Finance and Budget Commission, which has twice rejected the draft budget on the grounds of salaries and the allocation of emergency funding.
The finance ministry announced on Monday it has allocated an additional 12 billion Afghanis (AFN) to salaries, of which half will be added to the salary fund at the start of the fiscal year (in April) and the balance will be added to the mid-year budget cycle.
Khalid Painda, the acting finance minister, also said the president and ministers will take pay cuts.
Members of the Wolesi Jirga commission felt however that the full amount should be rolled out immediately but the finance ministry said this was not possible.
“The salary increase must be accepted as 12 billion Afghanis, and this money for salaries must be paid at the beginning of the fiscal year; in most of the codes (funds) there is extra money, which needs to be reduced and the salaries increased,” said the committee chair Mir Afghan Safi.
The decision to increase the amount allocated to salaries comes after negotiations between the finance and budget committee of parliament and the finance ministry.
“On the issue of salaries, I promise to get six billion to finance the salaries, and we will implement it in the middle of the year and allocate twelve billion for next year,” said Painda.
In addition to this, members of the commission stated that government must respect the legislative authorities of the House.
“All those institutions that have not gotten a vote of confidence from the parliament are not authorized to sign financial letters, and if they do, they are accountable to the law in financial documents,” said Mohammad Azim Mohssini, a member of the Finance and Budget Commission.
However, Wolesi Jirga members who attended the commission’s meeting said part of the dispute over the draft budget has been resolved but that government needs to agree to other recommendations so that the budget can be tabled in parliament for approval.
Business
Russia eyes trans-Afghan railway to expand regional trade corridors
Uzbekistan, which already has a direct rail connection with Afghanistan, has positioned itself as a regional logistics hub linking Russia, Central Asia and South Asia.
Russia has expressed strong interest in constructing a railway through Afghanistan as part of broader efforts to strengthen transport and trade links with countries in the Global South, Russian Deputy Prime Minister Alexei Overchuk said.
Speaking to Russia 24 television, Overchuk noted that expanding connectivity with southern markets would help diversify Russia’s transport and logistics routes. He said various options for building a railway across Afghan territory are currently under discussion, with a focus on both western and eastern corridors.
Overchuk added that Russian specialists are actively studying the feasibility of the project and are involved in technical consultations related to the proposed railway.
His remarks follow earlier statements by Russian Industry and Trade Minister Denis Manturov, who said last year that Russia and Uzbekistan were jointly preparing a feasibility study for the Trans-Afghan railway, aimed at developing international transport corridors.
Subsequently, the transport ministers of Russia and Uzbekistan signed agreements to move into the development phase of the Trans-Afghan railway project, which is expected to extend southward to Pakistan.
Uzbekistan, which already has a direct rail connection with Afghanistan, has positioned itself as a regional logistics hub linking Russia, Central Asia and South Asia.
In November 2024, during a visit to Kabul, Overchuk told officials of the Islamic Emirate that Moscow was keen to participate in the Trans-Afghan railway project, describing it as a key initiative to enhance connectivity across Central Asia and the broader Eurasian region.
Business
Pakistan’s kinno exports falter as tensions with Afghanistan continue
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.
Business
Pezeshkian pledges to facilitate Iran-Afghanistan trade
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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