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IEA Islamizing Afghanistan’s banking system

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A delegation chaired by Hedayatullah Badri, acting governor of Da Afghanistan Bank, participated in a two-day conference titled “Strategies for the Impending Economic Slowdown and a Post Oil World: Through Economic Diversification and Leveraging Islamic Finance” on November 29 and 30 in Bahrain, DAB said in a statement.

At the conference, Badri said that DAB is committed to fully Islamizing Afghanistan’s banking and financial sector to eliminate interest and other illicit practices. Presently, all forms of interest-based transactions are prohibited, and all conventional banks will be converted into Islamic banks, read the statement.

In addition, he stated that diligent efforts are being made to make the banking and financial sectors in Afghanistan interest free.

These efforts involve drawing upon the experiences of other Islamic countries as well as leveraging the expertise and knowledge of international Islamic institutions.

Furthermore, Badri elaborated on the importance of ensuring that financial products offered by Islamic banking adhere to Sharia standards not only superficially in terms of their form, but also fundamentally in terms of their types.
He underscored the significance of conducting banking and finance activities in areas that yield benefits for the people and contribute to the realization of Sharia goals.

He further stated that particular attention and funding should be directed towards projects that generate job opportunities, alleviate poverty, ensure socio-economic justice, and enhance environmental protection.

On the sidelines of this meeting, Badri met with several international financial institutions, central bank governors from Islamic countries, and diplomats. Additionally, he had a dedicated meeting with Shaikh Ebrahim Bin Khalifa Al Khalifa, Chairman of the AAOIFI Board of Trustees, focusing on Islamic banking and fostering bilateral relations. He also met with the Turkish ambassador in Bahrain and shared insights on banking and economic matters.

He also conducted meetings with the board of directors of Islamic banks, religious scholars, and members of Sharia committees associated with Islamic banks. In these meetings, he provided detailed briefings on the implementation of Islamic banking in Afghanistan under Sharia principles, as well as the monetary policy formulated by Da Afghanistan Bank.

During another segment of the meeting, the Acting Governor of Da Afghanistan Bank engaged in a discussion with the representative of the Ulema (religious scholars) of Bangladesh. The focus of their conversation revolved around the banking and economic situation in Afghanistan, with special emphasis on the factors contributing to the stability of the Afghani currency. The representative of the Ulema of Bangladesh expressed that the Ulema and people of Bangladesh are proud that the Afghani is regarded as the most stable currency in Asia.

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Uzbekistan launches new cargo corridor linking China and Afghanistan

From Uzbekistan, shipments will be transferred onto trucks and transported across Turkmenistan en route to Herat in western Afghanistan.

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Uzbekistan’s national railway operator has announced the launch of a new multimodal freight route designed to strengthen logistics links between China and Afghanistan via Central Asia.

According to Trend news agency the new corridor will see container used goods transported by rail from China through Kazakhstan’s Altynkol station into Uzbekistan. Cargo will then be handled at the Bukhara logistics centre, operated by Uztemiryulkonteyner, before continuing its journey by road.

From Uzbekistan, shipments will be transferred onto trucks and transported across Turkmenistan en route to Herat in western Afghanistan.

Previously, freight along this trade corridor was largely routed via sea from China to Iran’s Bandar Abbas port, before continuing overland into Afghanistan. The new overland alternative is expected to streamline logistics and improve reliability.

Covering approximately 7,400 kilometres, the route is projected to reduce transit times to around 30 days, offering a more efficient option for regional cargo movement between East Asia and South Asia.

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Afghanistan presses Chinese contractor over delays in Mes Aynak copper project

During the meeting, the MCCT president assured that pending operations would be implemented in line with contractual provisions.

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Afghanistan’s Minister of Mines and Petroleum Hedayatullah Badri has raised concerns over delays in the Mes Aynak copper project during a meeting with Chinese officials and company representatives.

The talks brought together the Chinese ambassador, the head of MCCT, and the chairman of MJAM, the contractor responsible for the major mining project. Discussions focused on the lack of progress and the failure to implement key obligations outlined in the mining contract.

Officials reviewed outstanding commitments that had previously been formally communicated to the company, with Afghan authorities stressing that agreed mining activities have yet to be carried out.

During the meeting, the MCCT president assured that pending operations would be implemented in line with contractual provisions.

Badri emphasized that the contractor must fully comply with all terms and conditions of the agreement, as well as follow the ministry’s formal directives. He called for concrete and immediate steps to accelerate the project and ensure full implementation of planned activities.

Mes Aynak copper project

The Mes Aynak copper deposit, located about 40 kilometres southeast of Kabul, is one of the world’s largest untapped copper reserves, with an estimated 11 million tonnes of copper.

The project was awarded to a Chinese consortium led by state-run Metallurgical Corporation of China in 2007 and formally signed in 2008 under a 30-year lease. Valued at roughly $3–4 billion, it was the largest foreign investment in Afghanistan at the time.

The agreement included plans to develop the mine along with major infrastructure such as railways, roads, and power facilities, although several of these commitments were later delayed or renegotiated.

Despite its scale, the project has seen little progress over the past decade. Work slowed significantly around 2013–2014, with ongoing delays attributed to security concerns, lack of infrastructure, and disputes over contractual terms. The presence of a significant archaeological site at Mes Aynak — containing ancient Buddhist remains — has also complicated development, requiring extensive preservation efforts.

Afghan authorities have repeatedly raised concerns over the contractor’s failure to meet key obligations and timelines, while Chinese companies have cited security and logistical challenges as major obstacles.

Since the political changes in Afghanistan in 2021, the project has repeatedly come under focus, with officials pushing to revive stalled mining initiatives as part of broader economic recovery efforts. Chinese firms have signaled continued interest, but meaningful progress has yet to materialize.

The project remains strategically important, with the potential to generate significant revenue, create jobs, and support Afghanistan’s long-term economic development — if longstanding challenges can be resolved.

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Kazakhstan grain exports to Afghanistan jump sharply

Shipments to Afghanistan reached 302,000 tons during the period, marking a 4.2-fold increase compared to the same timeframe last year.

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Grain exports from Kazakhstan to Afghanistan surged more than fourfold in the first quarter of 2026, according to a report by Kazinform International News Agency.

Shipments to Afghanistan reached 302,000 tonnes during the period, marking a 4.2-fold increase compared to the same timeframe last year.

Kazakhstan’s overall grain exports also recorded solid growth, rising 18 percent to 3.2 million tonnes. Domestic grain shipments increased by 8 percent, totaling 0.9 million tonnes.

Looking ahead, Kazakhstan plans to expand its agricultural processing capacity, with new grain facilities expected to handle a combined 5.8 million tonnes annually by 2028.

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