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Pay cuts for Ghani and ministers, but pay rises for govt workers

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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.

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Afghanistan approves new foreign investment policy in bid to attract international investors

The decisions have been forwarded to the office of the Supreme Leader of the Islamic Emirate for final approval.

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Afghanistan’s Economic Commission has approved a new foreign investment policy aimed at attracting international investors, improving investment opportunities and supporting the country’s economic growth.

The decision was made during the commission’s regular meeting, chaired by Mullah Abdul Ghani Baradar, Deputy Prime Minister for Economic Affairs, at the Marble Palace on Monday.

According to the Deputy Prime Minister’s Office for Economic Affairs, the proposed policy was presented by a committee established under the leadership of the economic deputy office. Following a comprehensive review and consideration of the commission’s recommendations, the policy was approved.

The policy aims to regulate foreign investment activities, facilitate investment procedures, create a favourable environment for investors, ensure investment security and promote Afghanistan’s economic growth and development.

During the meeting, the commission also approved a proposal concerning the payment of fixed taxes by commercial import companies at the country’s customs offices.

Officials said implementing the proposal would create additional facilities and simplify procedures for importing businesses.

The decisions have been forwarded to the office of the Supreme Leader of the Islamic Emirate for final approval.

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Afghanistan and Iran discuss boosting trade and investment ties

Both sides agreed to follow up on the issues raised, improve coordination between relevant economic institutions and work towards removing barriers to trade.

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Afghanistan and Iran have held talks on expanding bilateral trade, improving cross-border commerce and creating new investment opportunities for businesses in both countries.

The discussions took place during a meeting between a trade delegation from Afghanistan’s Kandahar province and representatives of the Iran-Afghanistan Joint Chamber of Commerce.

The Afghan delegation was led by Kamaluddin Tawhid, Chairman of the Afghanistan-Iran Joint Chamber of Commerce, who met with his Iranian counterpart, Mahmoud Seyadat, along with members of the chamber’s board of directors. Afghanistan’s Consul General in Mashhad, Noor Mohammad Mutawakkil, also attended.

The talks focused on strengthening economic cooperation, streamlining trade procedures at ports and border crossings, and encouraging joint investment by Afghan and Iranian companies.

Participants also raised several practical obstacles affecting commercial activities, including foreign exchange obligations, visa arrangements for Afghan truck drivers and the movement of Afghan freight vehicles through Iranian territory.

Tawhid highlighted Kandahar’s economic potential and investment opportunities across Afghanistan, urging Iranian businesses to play a greater role in the country’s economy.

He also pointed to investment opportunities identified by Afghanistan’s Ministry of Industry and Commerce, stressing the need for improved facilities for private-sector businesses and closer cooperation between the two countries’ commercial communities.

Both sides agreed to follow up on the issues raised, improve coordination between relevant economic institutions and work towards removing barriers to trade.

The meeting concluded with a commitment to strengthen commercial exchanges and expand trade and investment relations between Afghanistan and Iran.

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UK-Afghanistan trade falls 16.7% to £70 million over 12 months

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Trade in goods and services between the United Kingdom and Afghanistan declined by 16.7 percent to £70 million in the 12 months to the end of June 2026, according to the latest figures published by the UK Department for Business and Trade.

The department’s trade and investment factsheet, released on November 6, shows that bilateral trade fell by £14 million compared with the same period a year earlier.

UK exports to Afghanistan totalled £57 million, down 18.6 percent or £13 million, while imports from Afghanistan stood at £13 million, representing a 7.1 percent decline.

The figures show that goods accounted for £32 million, or 45.7 percent, of total trade, while services made up the remaining £38 million, or 54.3 percent.

UK exports to Afghanistan included beverages, pharmaceutical products, dairy products, road vehicles and industrial machinery.

Vegetables and fruit were the leading Afghan goods exports to the UK, worth £1.7 million. Clothing and textile fabrics were also among the main products exported.

The report ranks Afghanistan as the UK’s 166th-largest trading partner, accounting for less than 0.1 percent of the UK’s total trade during the period.

 
 

 

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