Business
ADB approves $110 million grant to boost power supply to Afghanistan
The Asian Development Bank (ADB) on Wednesday approved a $110 million grant to boost power supply and strengthen Afghanistan’s energy sector by improving its sustainability and promoting cross-border trade in energy.
“The project will help address Afghanistan’s chronic power shortage by immediately doubling the volume of power imports and ensuring long-term cost-competitive electricity supply,” read a statement issued by ADB.
Once complete, the project will provide improved access to customers and facilitate 500,000 new connections to households, commercial entities, and industrial customers.
“Demand for electricity is growing rapidly in Afghanistan and is essential for the country’s economic growth,” said ADB Energy Specialist Nana Gurgenidze.
“The project will help provide reliable and affordable electricity to households and businesses by strengthening the grid and increasing power import capacity by 900 megawatts, with year-round firm energy imports of 3,000 gigawatt-hours.”
Afghanistan relies on energy imports from neighboring countries to meet its domestic demand and despite significant progress since 2002, only about 34 percent of the population has access to grid-connected electricity.
According to the ADB, the project will finance the construction of 201km of a 500-kilovolt overhead transmission line from the Surkhan substation in Uzbekistan to the Khwaja-Alwan substation in Afghanistan – a key interconnection node to receive power from Tajikistan, Turkmenistan, and Uzbekistan.
It will also fund the expansion of a line bay, including associated equipment, at the Khwaja-Alwan substation and the project will allow Uzbek power into the Afghan grid under a 10-year power purchase and sales agreement signed in August 2020 by the Afghanistan and Uzbekistan governments.
In addition, staff, including female engineers at the national power utility Da Afghanistan Breshna Sherkat (DABS), will be trained to manage cross-border power transfer and parallel operations, including emergency operation systems with CAPS, read the statement.
Business
$30 million pharmaceutical investment launched in Herat as new production line opens
Meanwhile, the newly inaugurated serum and injectable production line is capable of producing up to 100,000 packages of serum per day.
The foundation stone has been laid for three new pharmaceutical production blocks at Ovison Pharma in Herat, with an investment of $30 million, while the factory’s new serum and injectable production line has also been inaugurated.
The new production blocks will be constructed on a 3,000-square-metre site, with each facility planned to have five floors. Equipped with advanced machinery and designed to meet international standards, the expansion is expected to significantly increase the factory’s pharmaceutical production capacity.
Meanwhile, the newly inaugurated serum and injectable production line is capable of producing up to 100,000 packages of serum per day.
The expansion marks a significant step toward strengthening Afghanistan’s pharmaceutical industry, increasing domestic production and reducing the country’s reliance on imported medicines.
The investment is also expected to support the development of local manufacturing capacity and improve access to domestically produced pharmaceutical products.
Business
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.
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.
Business
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.
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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