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Afghanistan, Turkmenistan sign MoUs, seal private sector contracts

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Last Updated on: October 3, 2020

Afghanistan and Turkmenistan signed three memoranda of understanding (MoUs) and an economic cooperation agreement in Kabul on Wednesday for electricity and fiber optics.

In a statement issued by the Presidential Palace (ARG), two companies will be responsible for transferring 500 MW of electricity from Turkmenistan to Afghanistan and for connecting a fiber optics network. The companies are Afghanistan’s Bayat Group and Turkmenistan’s Chalak Company.

During the official signing ceremony, Afghan President Ashraf Ghani thanked the two companies for their cooperation and said Turkmenistan and Afghanistan are proving to be good neighbors amid efforts to strengthen diplomatic and economic ties. 

“Thanks to the presence of Bayat Group and Chalak Private Company, it shows that Afghan and international private companies have joined hands to provide electricity,” Ghani was quoted in the statement as having said. 

“Fiber optics is the infrastructure of the 21st century and this infrastructure gives hope to our youth. Innovative work in the 21st century is impossible without a comprehensive understanding of fiber optic networks, connectivity and modern technology,” he stated.

Representing Turkmenistan at the event was Turkmen Ambassador to Afghanistan Ovezov Hoja Sapargeldievich.

The ambassador said talks between the presidents of Turkmenistan and Afghanistan had always been about bilateral cooperation and partnership. He said his country supports all efforts and initiatives for peace and stability in Afghanistan and hoped that Afghanistan would achieve peace as soon as possible.

Ghani in turn thanked the ambassador and the President of Turkmenistan Gurbanguly Berdimuhamedow and said that with ongoing efforts to strengthen ties new avenues, including the lapus lazuli and silk road routes, were projects that will be delivered on. 

He said the countries were today able to revisit history and make up for the time lost in recent years. 

Ghani also said the TAPI pipeline project would benefit both countries and the people of Afghanistan. 

“Turkmenistan is a good neighbor not only to Afghanistan, but to all of us, and we are going back to our ancient roots,” he said.

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Fifth section of Hairatan–Mazar-i-Sharif railway reopens in northern Afghanistan

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Mullah Abdul Ghani Baradar, the Deputy Prime Minister for Economic Affairs, on Thursday officially reopened the fifth section of the Hairatan–Mazar-e-Sharif railway line in northern Balkh province, marking another step in Afghanistan’s efforts to expand its rail infrastructure and regional trade connectivity.

Speaking at the reopening ceremony, Baradar praised the Ministry of Public Works for its efforts in developing Afghanistan’s railway network and expressed appreciation for Uzbekistan’s cooperation in the project.

He said economic and commercial ties between Afghanistan and Uzbekistan have strengthened significantly in recent years, adding that a joint committee led by the governor of Balkh and involving relevant institutions has been established to further enhance bilateral cooperation.

Officials said the newly reopened section of the railway is 70 kilometers long and includes 30 kilometers of branch lines, five railway stations, and the capacity to unload up to 50 wagons simultaneously.

The government said the reopening of the railway section is expected to improve the transportation of commercial goods, increase trade volume, and facilitate regional economic connectivity between Afghanistan and neighboring countries.

The Hairatan–Mazar-e-Sharif railway is considered one of Afghanistan’s most important trade corridors, linking the country to Central Asia through Uzbekistan.

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Kabul, Tashkent push industrial cooperation with planned factory transfers

The talks focused on strengthening collaboration in the light industry sector and making use of Uzbekistan’s experience in manufacturing and industrial development.

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Afghanistan and Uzbekistan have discussed the transfer of 20 light industry factories to Afghanistan as part of efforts to deepen economic cooperation and expand industrial investment between the two countries.

According to Afghanistan’s Ministry of Industry and Commerce, the discussions took place during a bilateral meeting between Nooruddin Azizi, Afghanistan’s Minister of Industry and Commerce, and Nozimjon Kholmurodov, head of the Light Industry Development Agency under Uzbekistan’s Council of Ministers, along with their respective delegations.

The talks focused on strengthening collaboration in the light industry sector and making use of Uzbekistan’s experience in manufacturing and industrial development.

Key topics included standard cotton cultivation in Afghanistan, cotton processing and yarn production, as well as the relocation of cotton processing, leather and cashmere factories from Uzbekistan to Afghanistan. The two sides also discussed the production of leather boots and textiles in Afghanistan and the export of Uzbek-made garments to Afghan markets.

Officials further reviewed plans for transferring 20 factories from Uzbekistan to Afghanistan across various industrial sectors.

Discussions also covered organizing a specialized international light industry exhibition at the Termez joint market and promoting joint investment in Afghanistan’s yarn production industry.

At the conclusion of the meeting, both sides introduced technical and liaison teams tasked with following up on the implementation of the agreed initiatives.

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Afghanistan’s domestic pharmaceutical production sees major growth: Mullah Baradar

Officials attending the exhibition said 134 pharmaceutical manufacturing factories are currently operating across Afghanistan, producing around 1,170 types of medicines.

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Mullah Abdul Ghani Baradar on Tuesday announced a significant increase in Afghanistan’s domestic pharmaceutical production, saying local manufacturers are now supplying a much larger share of the country’s medicine demand.

Speaking at the opening ceremony of the second national and international Abu Ali Sina Balkhi specialized exhibition in Kabul, Baradar said strengthening domestic production is one of the most effective ways to counter economic pressure and sanctions.

According to him, a decline in imports of foreign medicines in recent months has helped accelerate growth in Afghanistan’s pharmaceutical sector, while public trust in locally produced medicines has also increased.

“Today, a considerable portion of the country’s pharmaceutical needs is being supplied through domestic production,” Baradar said.

He noted, however, that despite recent progress, Afghan pharmaceutical factories still need to improve production standards and expand output in line with international requirements.

Baradar also called on traders to avoid hoarding medicines or selling them at inflated prices, urging relevant authorities to take firm action against such practices.

The deputy prime minister invited both domestic and foreign investors to invest in Afghanistan, saying the Islamic Emirate is working to simplify investment procedures and introduce electronic systems to facilitate business operations.

He added that the Islamic Emirate is not only focused on strengthening the domestic economy but is also seeking to expand regional and international economic ties.

According to Baradar, economic engagement with neighboring and regional countries has increased in recent months.

Officials attending the exhibition said 134 pharmaceutical manufacturing factories are currently operating across Afghanistan, producing around 1,170 types of medicines.

They added that nearly $450 million has been invested in the sector so far, and domestic production now meets 38 percent of the country’s pharmaceutical demand — up from 25 percent just eight months ago.

The Abu Ali Sina Balkhi specialized exhibition, which features dozens of pharmaceutical companies, will continue for four days in Kabul.

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