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Cotton factories ‘owed’ $30 million by Pakistan: Kandahar Chamber

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Owners of cotton processing factories in Kandahar said this week that Pakistan is holding back about $30 million dollars owed to the sector in a bid to put them out of business.

According to Sayed Sarwar Amani, the head of the Kandahar Chamber of Commerce and Industries, due to restrictions on banking, Pakistan has failed to pay about $30 million owed to factories in the province.

“Our banking system is defective, we have problems, the banking remittances are closed, especially Pakistan is using this unfairly, it means that a lot of money from our cotton sector which is about $30 million is blocked in Pakistan.

“I can say that they are not paying us the money of 24 factories by referral nor through the banking system nor by TT (telegraphic transfer),” Amani said.

There are 24 cotton processing factories in Kandahar which processed approximately 400,000 tons of cotton last year.

However, due to the challenges faced by the sector, this has dropped to only about 200,000 tons this year.

Chamber officials said Pakistan is trying to create problems for the owners of these factories in order to put them out of business.

Factory owners meanwhile said that a shortage of electricity to their industrial parks was also a major challenge.

Yar Mohammad Rahmani, the owner of one cotton factory, said: “Our main problem is electricity, before the coming of the Islamic Emirate we used to have generators here with 10-Megawatt electricity but we don’t have that now; now we are using solar power and (electricity generated from) Kajaki Dam,” he said adding that factories in the industrial plant got electricity only on alternate days.

Power “is provided one day to the north side of the park and one day to the south, I can say that electricity is our main problem,” he said.

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Survey for construction of Wakhan Corridor in Badakhshan completed

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Abdul Karim Fateh, Technical Deputy Minister of Public Works, says survey work for the construction of a road, known as the Wakhan Economic Corridor, in Badakhshan province has been completed, and work is now underway to design the new transit route.

Fateh stated the ministry is ready to begin practical work on the corridor once the budget is allocated.

According to him, once the road has been completed, Afghanistan will be connected to China by land. He also said the road will be used to transit goods between the two countries.

“China is a major economic country in the world, and fortunately, we share a border with this country. We want to rebuild the road that connects to the Chinese border, so that our imports and exports with China can begin by land,” he added.

Currently, trade between Afghanistan and China amounts to $1.1 billion, and once this transit route is operational, trade between the two countries is expected to expand.

Mirwais Hajizadeh, an economic expert, said: “My suggestion is that this Wakhan route should be created as soon as possible, and more focus should be put on it to reduce the transportation costs of imports and exports for traders and the private sector.”

“In the past, if a container of pine nuts was exported to China via air corridors, the cost was more than sixty to $65,000. If we export through Wakhan, our costs will decrease by 90 percent, and the cost will not exceed $5,000.”

Economic experts also believe that if Afghanistan is connected to China by land, several other countries will also transfer their goods to China via the corridor.

Currently, meanwhile, Afghanistan imports Chinese goods through various routes, and from time to time, Pakistan creates issues that result in heavy losses for Afghan traders.

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Over 1,500 emerald mines discovered in Panjshir: Local officials

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Local officials in Panjshir have announced the discovery of over 1,600 emerald mines in the province, with extraction currently underway at 600 sites.

Over the past year, the extraction of emeralds from 600 mines in Panjshir has yielded 100,000 carats, valued at approximately $6.9 million.

Panjshir Governor Mohammad Agha Hakim expressed optimism that the development of the mining sector will provide significant job opportunities, particularly for the province’s youth.

Economic experts believe that increased investment in large-scale mining could create tens of thousands of direct and indirect jobs, helping to reduce unemployment.

Meanwhile, Panjshir residents are calling on the Islamic Emirate to expand mining contracts in the province, highlighting the area's wealth in emeralds, iron, lead, zinc, and gold.

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IEA has provided facilities for industrialists and investors: Baradar

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Deputy Prime Minister for Economic Affairs Mullah Abdul Ghani Baradar says the Islamic Emirate has provided land, privileges, and facilities for industrialists and returning investors in industrial zones.

Speaking at a conference in Kabul on Thursday titled “Calls for Investment in Afghanistan”, Baradar said that the law for industrial zones had been signed with an introduction, six chapters, 11 sections, and 67 articles.

"I urge industrialists and investors to transfer their industries and investments to the country so that they can fulfill their responsibility in the development of the country's industry,” said Baradar.

He stated that the IEA has increased customs duties on imported items that are produced domestically and meet the needs of the people, in order to support local production.

Baradar added that all government departments have been instructed to prioritize domestic products in their purchases.

Meanwhile, the acting Minister of Industry and Commerce Nooruddin Azizi also announced at the conference that 160,000 hectares of land has been allocated to industrialists, and 1,200 investors have invested $500 million in various sectors.

Azizi said: “We have around 1,200 companies requesting land, and approximately $500 million is being invested by them in Afghanistan."

According to him, returning industrialists and traders are exempt from customs duties on machinery and equipment imports, and at their request, two-year visas will be issued for their foreign technical workers and engineers.

The acting Minister of Economy Din Mohammad Hanif also said: “If Afghan investors residing abroad bring half of their investment back to the country, Afghanistan will become self-sufficient."

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