Business
Headline inflation in Afghanistan down to -10.2% in January: World Bank
In January 2024, headline inflation experienced a significant downturn, reaching -10.2 percent on a year-on-year basis, the World Bank said in a report.
This substantial drop was largely due to a sharp decline in prices across both food and non-food categories, the report said.
Moreover, core inflation, which strips out the typically volatile food and energy sectors, also fell into negative territory, posting a rate of -6.5 percent on year-on-year basis.
“This ongoing core deflation reflects a troubling inability of both private and public sectors to stimulate sufficient demand. While this period of falling prices may offer temporary financial relief to the most vulnerable households by reducing the cost of living, it can also harm the broader macroeconomy,” the World Bank said.
According to the bank, Afghanistan’s exports contracted by 5 percent on year-on-year basis to $140.5 million in January 2024, down from $148.1 million the previous January.
Food exports to India jumped by 22 percent, compared to an 18 percent decline in Pakistan. Pakistan and India continued to be the top export destinations, claiming 45 percent and 34 percent of the total exports in January 2024, respectively.
The 2023 growth trend in imports extended into January 2024, hitting $830 million, up 37 percent from $600 million in January 2023.
According to the report, in 2023, the afghani (AFN) saw a significant 27 percent appreciation against the US dollar, buoyed by the influx of around $1.8 billion in UN cash shipments and an estimated $2 billion in remittances.
Revenues have been below the Islamic Emirate of Afghanistan’s (IEA) target during the first eleven months of FY2024, with border taxes underperforming despite a surge in imports.
Over the eleven-month span of FY2024, from March 22, 2023, to February 21, 2024, Afghanistan's revenue collection reached AFN 189 billion, narrowly missing the target by 2 percent but marking a 5.6 percent increase from the previous fiscal year, the report said.
Business
Iran records substantial increase in transit goods bound for Afghanistan
More than 15,000 containers weighing over 4,500 tons have been transported to Afghanistan through Iran’s Mahirood border in the first 6 months of this year
The head of customs in Iran's South Khorasan province says transit from the province's borders to Afghanistan increased eightfold in the first six months of this year.
Mohammad Kohgard, the head of customs in Iran's South Khorasan province told state-run IRNA news agency on Monday that more than 15,000 containers weighing over 4,500 tons had been transported to Afghanistan from the Mahirood border in this time.
"This is eight times more than in the same period last year," Kohgard added.
He said the transit goods included consumer goods, sugar, flour, cooking oil and fertilizers from Turkey, the United Arab Emirates, Russia and Indonesia through Mahirood customs to Afghanistan.
Business
Trade between Afghanistan and Pakistan drops sharply
Trade relations between the two countries are also fractured, especially as the closure of trade routes in Pakistan has resulted in major financial losses for fresh produce traders on both sides of the border, officials said.
Trade between Afghanistan and Pakistan has dropped off sharply this year, reaching its lowest levels in years, said officials from the joint chamber of commerce.
According to chamber officials, the reason for this is the closure of trade routes by Pakistan and administrative challenges regarding the export process of Afghanistan’s goods.
Trade relations between the two countries are also fractured, especially as the closure of trade routes in Pakistan has resulted in major financial losses for fresh produce traders on both sides of the border, officials said.
According to them, hundreds of trucks filled with fruit and vegetables from Afghanistan lost their cargo this year as their goods spoiled due to road closures.
Experts believe that Afghanistan should find new routes and markets for export goods - especially fresh produce, adding that it is clear Islamabad is not taking steps to resolve the issues.
Pakistan however claims Afghan exports dropped by 96 percent against last year and Pakistan exports to Afghanistan declined by 83 percent.
Pakistan’s The Nation reported Monday that this decrease was due to Pakistan’s anti-smuggling efforts and import restrictions.
Business
Construction of 252 MVA substation in Kabul’s Tarakhel gets underway
The projects will be implemented by local companies with a total investment of $18.7 million. Once completed, the substation will supply 250,000 residential and business clients with electricity.
Officials on Sunday inaugurated construction work of the 252 MVA substation in Kabul’s Tarakhel area and the 220 KV power line project from Chemtala to this substation.
The projects will be implemented by local companies with a total investment of $18.7 million. Once completed, the substation will supply 250,000 residential and business clients with electricity.
Speaking at the inauguration ceremony, Political Deputy Prime Minister Mawlawi Abdul Kabir said that controlling Afghanistan's waters, water supply, production of wind, solar and thermal energy and the development of agriculture are among the priorities of the Islamic Emirate, assuring neighbors that it will not affect them. He also noted that Afghanistan's soil has not been used against any country and the world also wants to engage with the Islamic Emirate.
"The world has recognized that a stable and self-sufficient Afghanistan will be possible only with the Islamic Emirate in power. The Islamic Emirate has proven in practice that no one is harmed from the soil of Afghanistan and today the world is interested in cooperation and engagement with Afghanistan,” he said.
Meanwhile, officials of Da Afghanistan Breshna Sherkat (DABS) said that two electricity transmission projects of 2,000 megawatts are underway from Turkmenistan and Uzbekistan.
"With the implementation of these projects, 24/7 electricity will be provided to all industrialists, businessmen and residential houses in Kabul,” said Abdul Bari Omar, the head of DABS.
According to the Ministry of Energy and Water, a large water dam in Zabul will soon be commissioned, the construction of Pashdan Dam has been completed and the clearing process for the handover of Shah wa Arus Dam in Kabul is underway.
This dam will provide drinking water to 20,000 families in the city, thousands of hectares of land will be irrigated and 2 megawatts of electricity will be produced.
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