Business
Ariana Afghan Airlines faces financial crisis as COVID-19 looms
As per some pieces of evidence received by Ariana News, Ariana Afghan Airlines has fired 40% of its employees while decrementing the payrolls for the remaining employees up to 30%.
Some members of parliament criticize Ariana Afghan Airlines for firing its employees considering it an illegal act. They urge the government to financially support this service company and save jobs.
The COVID-19 has wilted the only governmental airline company in Afghanistan.
The CEO of Ariana Afghan Airlines said that just in the first three months of 2020, the company had suffered a loss of seven million USD due to limited flights and that now efforts were underway to make up for the loss.
Ariana News has received some shreds of evidence which show that the Ariana Afghan Airlines has decided to fire 40% of its employees as well as to decrement the salaries of the remaining employees up to 30%.
Alem Shah Ibrahimi, the CEO of Ariana Afghan Airlines, said, “We terminating our employees because we have walked into financial crisis, and we will pay others at least 30% of their salaries. We have to manage the crisis and not let the company go bankrupt.”
Some legal bodies believe that the financial crisis cannot justify firing employees, especially when COVID-19 has hit people financially.
The evidence shows that Ariana Afghan Airline suggests allocating six million dollars to establish Bakhtar Airlines, although the airline is suffering from the crisis.
Therefore, the authorities have come under criticism for not financially supporting the almost bankrupt Ariana Afghan Airlines, and instead, are trying to establish another airline company.
Although Ariana Afghan Airlines is going through its hard time, with having 40% of its workers sacked, it still conducts domestic flights transporting service workers – meaning, it could be making money.
Moreover, the airline is trying to help import important goods from other countries to Afghanistan.
The government is expected to financially support the service and private businesses to help overcome the crisis derived from the COVID-19 pandemic.
Business
Afghanistan eyes direct Basmati rice imports from India amid tensions with Pakistan
Afghanistan is exploring direct imports of Basmati rice from India as it seeks to diversify its supply sources amid ongoing tensions with Pakistan, according to a report by The Hindu.
The report said Indian exporters and Afghan importers are expected to meet next month to discuss expanding direct trade in Basmati rice, following preliminary talks between officials from both countries held last week with the facilitation of the PHD Chamber of Commerce and Industry.
Afghanistan consumes nearly 500,000 tonnes of Basmati rice annually and has traditionally relied on imports from neighboring Pakistan. However, industry sources told The Hindu that recent strains in Afghanistan-Pakistan relations have encouraged Kabul to seek alternative suppliers, including India.
Representatives of Afghanistan’s diplomatic mission in New Delhi reportedly took part in the discussions and expressed interest in increasing purchases of Indian Basmati rice. At present, some Indian rice reaches Afghanistan indirectly through traders in Iran and Dubai, a route that adds to transportation and transaction costs.
One proposal under consideration is to transport rice through Iran’s Bandar Abbas Port, subject to agreements between the two governments. The discussions are also expected to cover logistics, payment mechanisms, and the possibility of barter trade, with Afghanistan’s dried fruit exports to India seen as a potential component of future trade arrangements.
According to The Hindu, a direct trade arrangement could help India expand its share of Afghanistan’s Basmati market, which has historically been dominated by Pakistani suppliers.
Business
Afghanistan, Kyrgyzstan establish trade council to boost economic cooperation
The two sides signed a memorandum of understanding to establish the Afghanistan-Kyrgyzstan Trade Council.
The Embassy of the Islamic Emirate of Afghanistan in Kyrgyzstan says the Afghanistan-Kyrgyzstan Business Forum has been held with the participation of officials from both countries.
According to a statement issued by the embassy, Acting Ambassador Abdul Shakoor Haqqani said Afghanistan supports strengthening bilateral trade relations and promoting joint economic initiatives between the two countries.
The statement added that the two sides signed a memorandum of understanding to establish the Afghanistan-Kyrgyzstan Trade Council. The council aims to strengthen ties between business communities, coordinate joint initiatives, and expand and support economic projects.
Meanwhile, Sayed Karim Hashemi, Chairman of the Afghanistan Chamber of Commerce and Investment, arrived in Kyrgyzstan on Saturday at the head of a trade delegation to participate in the forum.
Business
Afghanistan invites Turkish investors to expand joint investments
Participants stressed the importance of increasing private sector cooperation and creating new opportunities to boost trade and investment between Afghanistan and Türkiye.
A high-level Afghan business delegation, led by the Chairman of the Balkh Chamber of Commerce and Investment, Mohammad Ibrahim Ghazanfar, participated in the Afghanistan–Türkiye Joint Business Council meeting in Istanbul, calling for expanded joint investment and stronger economic cooperation between the two countries.
According to a statement from the Balkh Chamber of Commerce and Investment, Ghazanfar invited Turkish investors and industrialists to explore investment opportunities across various sectors in Afghanistan, emphasizing the country’s potential for mutually beneficial partnerships.
The meeting brought together business leaders, investors, and private sector representatives from both Afghanistan and Türkiye to discuss ways to strengthen bilateral trade and economic ties.
During the event, several cooperation agreements were signed between Afghan and Turkish economic institutions. The agreements are aimed at expanding commercial relations, promoting joint investment projects, and enhancing economic cooperation between the two countries.
The meeting was chaired by Süleyman Güllü, Chairman of the Türkiye–Afghanistan Joint Business Council, and was attended by Mohammad Akbar Azimi, the Islamic Emirate of Afghanistan’s Consul General in Istanbul, along with a number of businessmen and investors from both countries.
Participants stressed the importance of increasing private sector cooperation and creating new opportunities to boost trade and investment between Afghanistan and Türkiye.
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