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World Bank says Afghanistan private sector adversely affected due to economic crisis

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(Last Updated On: April 9, 2022)

A World Bank survey has said that Afghanistan’s ongoing economic crisis has adversely affected economic activities in the country with the private sector suffering the most.

The survey was carried out in October and November and was made public on Thursday, April 7, 2022.

The survey indicates that most Afghan traders complain about the lack of demand in markets, which has reduced economic activities and investment in the country.

One in three respondents of the survey has said that they have suspended their businesses after August 2021.

Based on the findings of the survey, 38 percent of small firms have suspended their operations, 35 of medium firms have been closed, and 25 percent of big firms have stopped their activities.

In the meantime, the existing economic situation has also impacted women-run businesses, and 42 percent of these businesses have been suspended.

Private sector members also approved the findings of the survey.

“We believe that some post-transformation economic problems have arisen, but the cause is the World Bank itself. Had they not stimulated Afghanistan’s economic systems, Afghanistan’s economy would not have been in trouble,” said Sherbaz Kaminzada, CEO of Afghanistan Chamber of Commerce and Industries.

The Afghan Ministry of Finance rejected the report and questioned its accuracy. Its officials said that economic activities in the country have increased over the past few months and that Afghanistan is still developing economically.

“First of all, we have to see how accurate this report is. The other thing is that the World Bank itself is to blame for the economic crisis in Afghanistan. Our assets have been blocked and sanctions have been imposed. These are all the problems,” said Ahmad Wali Haqmal, the finance ministry’s spokesman.

The World Bank survey also points to unemployment after the 15th of August 2021 and says that companies in Afghanistan have laid off more than half of their employees, majority of them being women.

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Turkmenistan makes ‘significant progress’ on TAPI pipeline project

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(Last Updated On: April 29, 2024)

Turkmenistan has made “significant progress” on the Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline project, said TAPI Pipeline Company Limited CEO Muhammetmyrat Amanov.

“Turkmenistan is making significant progress on the TAPI natural gas pipeline, which will supply 33 billion cubic meters to South Asia annually,” he said.

Speaking at the Turkmen Energy Investment Forum (TEIF 2024) currently being held in Paris, Amanov highlighted that Turkmenistan’s section of the pipeline had been completed and ongoing discussions to advance the project beyond Turkmenistan were in strict alignment with the international standards.

He said the project envisaged environmental sustainability by leveraging natural gas to reduce emissions significantly compared to coal and oil, thereby tackling indoor pollution and enhancing regional air quality.

“In light of the ongoing project developments, Turkmenistan remains committed to upholding the international law, fulfilling its obligations and adhering to international norms and regulations,” he said.

This approach reaffirms Turkmenistan’s dedication to global cooperation and legal integrity in executing the TAPI project.

Looking ahead, the project’s focus is shifting to the Herat Offtake Strategy in Afghanistan, which will play a critical role in environmental protection by reducing air pollution, while also contributing to maintaining public safety, he said.

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Azizi calls on Malaysian investors to invest in Afghanistan

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(Last Updated On: April 24, 2024)

Nooruddin Azizi, Acting Minister of Commerce and Industry, met with representatives from the ministries of foreign affairs, defense and interior of Malaysia, along with other senior officials, on Wednesday and called on Malaysians to invest in Afghanistan.

The visiting delegation is being led by senior diplomat Dr. Shazelina Zainul Abidin.

According to the IEA’s foreign ministry, the two sides discussed bilateral trade, holding a business communication conference to strengthen trade relations between the two countries, the trade balance between Afghanistan and Malaysia, and creating a market for Afghan products, including carpets, cotton, and minerals.

According to the ministry, at the end of the meeting, the Acting Minister emphasized the increase of investment from regional countries in Afghanistan and called on Malaysian investors to also invest in Afghanistan.

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Afghanistan starts exporting via railway to Turkey

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(Last Updated On: April 22, 2024)

The Ministry of Interior says that Afghanistan has started exporting goods to Turkey via the Herat-Khaf railway line.

In a post on X, the ministry said: “Afghanistan’s exports to Turkey started in a calm atmosphere through the Herat-Khaf railway line.”

The ministry added that one train will run daily for a month and then two trains will run daily.

According to the ministry, the security of Khaf-Herat railway line is provided by the guards of the National Public Protection Agency.

Khaf-Herat railway project not only connects Iran and Afghanistan by rail, but also completes a 2,000-kilometer route along the east-west rail corridor from China, through Uzbekistan, to Afghanistan, to Iran, and on to Turkey and Europe.

As a landlocked country, this railway network will provide a safe route to connect with Europe via Iran’s railway network and Iran’s southern ports.

This railway line is strategic for trade between Iran and Afghanistan and will allow six million tons of goods to be sent between the two countries.

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