Connect with us

Business

Afghanistan’s economy under the spotlight on eve of 1401, the new solar year

Published

on

(Last Updated On: March 20, 2022)

On the eve of Afghanistan’s new solar year, Nowruz, the year 1400 has proven to be one of increased economic hardships that ultimately led to a financial crisis in the country.

In August, the former government collapsed which sparked widespread panic among Afghans who rushed to banks to draw their money.

People queued for hours, for days and even weeks but as the Ashraf Ghani government tumbled and foreign troops withdrew, foreign funding that propped up the country came to a sudden halt and the banking system froze.

In order to prevent the complete collapse of the banking system, the Islamic Emirate of Afghanistan (IEA), which had swept to power, stepped in and imposed strict restrictions on the amount of cash people could withdraw.

Global sanctions added to the mix and made life even more difficult for Afghans – so much so that the IEA was unable to pay government employees their salaries for the first few months.

Gradually, the economic situation stopped its freefall and leveled out. Humanitarian aid helped ease hunger and shipments of cash from the United Nations has continued to come in to the country. Although sanctions are still in place, the UN has stepped in to assist with regards to the economy.

On a more positive note, some development projects have been kickstarted by the IEA these past few months – especially transit projects connecting Afghanistan to Central Asia.

However, Afghanistan’s economic situation is still critical.

Key problems are as follows:

• No new investments have been made in 1400 in the country
• With the coming to power of the Islamic Emirate, banking activities were suspended for a significant period of time
• International organizations stopped major projects they had been funding, leaving many projects unfinished
• Global sanctions were imposed on the country’s economic system
• Trade between Afghanistan and its neighbors stalled due to a lack of funding and political uncertainty for some time
• The Afghani (AFN) plummeted to a low of 130 AFN to the US dollar. It has since recovered somewhat
• Food and fuel prices have risen unprecedentedly
• About $9 billion of foreign assets were frozen by the United States

Despite all these challenges, the IEA has stepped up efforts to stabilize the economy and to improve the situation. The IEA came out in support of the private sector and worked hard to save the country’s economy from collapsing altogether.

The Ministry of Finance meanwhile said the economic situation in the country has improved slightly in the past few months and that the Islamic Emirate will take major steps to boost the economy in the new year (1401). The IEA also said it will launch some key development projects.

The Ministry of Finance, however, was unable to finance the budget for the new fiscal year from domestic revenue. This is not however new, as a major part of the budget has been funded by the international community for the past 20 years.

Economic experts believe the Islamic Emirate has taken effective steps to stabilize the economy, but many have said government needs to facilitate new investments.

Afghanistan’s private sector has in addition called on the Islamic Emirate to invest in agriculture and mining; to generate electricity; and develop transit, telecommunications, fiber optics and telecommunication sectors.

Business

Afghanistan and Turkmenistan firms sign over 10 contracts on construction, food materials

Published

on

(Last Updated On: May 7, 2024)

Afghanistan and Turkmenistan companies have signed more than 10 contracts and two memorandums of understanding on construction materials, including iron bars, paint, marble and food materials.

The contracts were signed during the trip of a Turkmen business delegation to Herat province and in the presence of Nooruddin Azizi, Acting Minister of Industry and Commerce.

“There is excellent opportunity for the expansion of trade and economic relations between Afghanistan and Turkmenistan, which both sides should take full advantage of,” Azizi said at the signing ceremony of these contracts, according to a statement released by the Ministry of Industry and Commerce on Tuesday.

The Ministry of Industry and Commerce pointed out that the contracts were inked as a follow-up to visit of the acting minister to Turkmenistan and meeting with its national leader Gurbanguly Berdi Mohammadov.

Earlier, the delegation from Turkmenistan’s private sector said that their goal is to expand economic relations between the private sectors of the two countries. They said they are hoping to buy hundreds of tons of construction materials from Afghan industrialists every year.

Continue Reading

Business

Turkmenistan’s industrialists keen to buy Herat-made construction material

Published

on

(Last Updated On: May 7, 2024)

Union of Turkmen industrialists is interested in a contract with Herat industrialists in the field of construction materials. The economic delegation of Turkmenistan, which has been in Herat for the past three days, has visited various plants including marble and iron and also paint manufacturers.

The delegation, which is from Turkmenistan’s private sector, says that their goal is to expand economic relations between the private sectors of the two countries.

They said they are hoping to buy hundreds of tons of construction materials from Afghan industrialists every year.

Contracts for the sale of marble, paint and iron bars between the two countries are expected to be signed soon.

“During this trip that we were in Herat and the products that we saw in the factories and especially the works that were handicrafts in the field of marble and onyx, these are really amazing, naturally, in the world of industries handicraft is said to be one of the most expensive and popular products, so we were surprised by the products we saw here,” said a member of the delegation from Turkmenistan.

Herat Chamber of Industries and Mines says that there is now the capacity in Herat Industrial City to produce enough goods in various sectors to export abroad. At present, there are about 40 companies operating in the marble processing sector.

An agreement with the Turkmenistan union for construction materials could be a valuable step for Herat business owners.

Some factory owners also believe that the production of construction materials has improved in recent years, and that the capacities in the production and processing of marble and iron bars have also increased.

Herat Chamber of Industries and Mines says that currently more than 800 factories are active in the industrial town of this province.

Continue Reading

Business

Afghanistan’s Turkey-bound goods via rail cross Tehran

Published

on

(Last Updated On: May 6, 2024)

Ten wagons of Afghanistan’s goods bound for Turkey have passed through Tehran and are now on the way to the Razi border in northwest Iran, local media reported on Monday.

IRNA news agency, citing the Ministry of Roads and Urban Development of Iran, said that Afghanistan Rail Development Consortium dispatched the consignment without going through legal procedures, including obtaining permits from border guards and customs, as well as without obtaining permission from the Iranian Railway Authority.

It said that Iran allowed the passage of the consignment considering its national interests and with goodwill.

Iranian officials announced that they will allow the next trade consignment from Afghanistan to transit through the country only after the necessary permits from relevant authorities have been obtained.

Continue Reading

Trending

Copyright © 2022 Ariana News. All rights reserved!