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Embezzlement in Afghan customs; $1 billion annually lost to graft

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Last Updated on: October 25, 2022

More than $1 billion annually is being lost to embezzlement from the Afghan customs revenues. 

Integrity Watch of Afghanistan said Tuesday local tyrants have embezzled millions of dollars from Herat customs, adding that the government has no plan to prevent stealing of public treasury.

A statistic shared by officials from Herat customs shows that the customs have more than 30 billion AFN incomes per year but less than 20 billion AFN had been collected in the government’s account.

Since 1390, the Persian calendar, the Ministry of Finance and Herat customs have recorded annual revenue figures as follow:

In 1390, Herat Customs had 16 billion AFN incomes. The revenues in 1392 declined to 13 billion AFN and decreased to 9 billion AFN in 1393 compared to the previous years.

The statistics show 12 billion AFN incomes in 1394, while the figure increased to 20 billion AFN in 1396 and 1397. On 1398 the incomes once again declined to 16 billion AFN.

Meanwhile, in Twitter and Facebook posts a senior official of Herat customs has also shared daily incomes of the organization for the current year: On March 4, daily income was 136 million AFN, on July 8 the revenue was 119 million AFN and on July 9 the income was 122 million AFN, according to the statistics.

The incomes of the organization reportedly could reach 33 billion AFN in the current year, figures show.

The Ministry of Finance, however, says not only the customs of Herat but also no customs across the country have the same revenue per year, due to a high volume of goods.

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Pakistan’s kinno exports falter as tensions with Afghanistan continue

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Pakistan’s kinno exports remain far below potential as regional tensions, high freight costs and weak government support continue to choke the citrus trade.

Despite being a leading global citrus producer, Pakistan is expected to export just 400,000–450,000 tonnes of kinno in the 2025–26 season, compared with an estimated capacity of 700,000–800,000 tonnes.

Exports in 2024–25 stood at around 350,000–400,000 tonnes, mainly to Russia, the UAE, Saudi Arabia, Afghanistan, Indonesia and Central Asia. While better fruit quality this season has raised hopes, persistent crossing disruptions—especially with Afghanistan—and transport bottlenecks have offset gains.

Growers say prices have collapsed sharply, forcing panic sales. Rates for large kinno have fallen from over Rs120 per kg early in the season to as low as Rs75, while smaller fruit is selling for Rs35–40 per kg amid weak demand.

Industry leaders warn the crisis is crippling processing units and jobs. More than 100 factories reportedly failed to open this season, with dozens more shutting down as exports stall. Cold storages in Sargodha are nearly full, putting fruit worth millions of dollars at risk of spoilage, while growers fear losses of up to Rs10 billion.

Exporters are urging the government to urgently resolve issues, subsidise logistics, and help access alternative markets, warning that prolonged inaction could devastate farmers, workers and the wider economy.

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Pezeshkian pledges to facilitate Iran-Afghanistan trade

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Iranian President Masoud Pezeshkian has said that Tehran will facilitate trade and economic exchanges with Afghanistan, including easing procedures at customs and local marketplaces.

He made the remarks during a televised interview following his visit to South Khorasan province, which shares a border with Afghanistan.

Pezeshkian, in a separate event addressing local business leaders, highlighted the province’s strategic advantages, citing its rich mineral resources, proximity to neighboring countries such as Afghanistan and Pakistan, and access to the ocean via the Chabahar port. He described the region as “a golden opportunity not found everywhere,” emphasizing its potential for economic growth and cross-border commerce.

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Afghanistan-Kazakhstan banking ties discussed in Kabul meeting

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A Kazakh delegation led by the Deputy Minister of Finance of Kazakhstan met with Sediqullah Khalid, First Deputy Governor of Da Afghanistan Bank, to discuss ways of strengthening banking and economic cooperation between the two countries.

According to a statement issued by Da Afghanistan Bank, Khalid said the central bank is keen to establish regular and effective banking relations with Kazakhstan as part of broader efforts to expand bilateral trade.

He noted that enhanced banking cooperation would help facilitate trade, investment, and wider economic interaction between Afghanistan and Kazakhstan, while also contributing to financial stability at the regional level.

Members of the Kazakh delegation also emphasized the importance of developing banking and economic ties and expressed their readiness to expand joint cooperation.

The two sides further agreed to establish technical committees from both countries to hold expert-level discussions and advance practical steps for cooperation.

 
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