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IEA discusses easing banking transactions with Kazakhstan

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A delegation of the Islamic Emirate of Afghanistan (IEA) discussed facilitating international financial transactions with private banks on a recent trip to Kazakhstan in a bid to ease the Afghan banking sector's isolation, the acting commerce minister said.

Nooruddin Azizi, acting Minister of Commerce and Industry, led a business delegation to Kazakhstan last week.

In addition to banking he discussed the possibility of preferential trade tariffs, telecommunications projects and transit routes, including for possible shipments of Russian oil to South Asia, he told Reuters in an interview on Wednesday.

"We had teams from Da Afghanistan Bank (Afghanistan's central bank) and private banks in Kazakhstan, they discussed and are trying to find good ways to decrease the price of financial transactions ... we don't have any banking limitation with Kazakhstan," he said.

Afghanistan's banking sector has been hampered and international transactions severely limited since the IEA administration took over two years ago as foreign forces withdrew.

Some IEA leaders are subject to United Nations and United States sanctions. Many international banks have limited transactions with Afghan banks to reduce risk, economists and diplomats say, contributing to a stall in the financial system.

That has been exacerbated by the United States and other governments freezing Afghan central bank assets held abroad.

Azizi also said transactions that went ahead often incurred expensive fees, sometimes 5% of the transaction, which they hoped to reduce.

Fixing Afghanistan's banking sector was a priority, he said, adding that there are no sanctions directly on banks. But he acknowledged international financial institutions were not easily facilitating transactions.

"It is the preference of some banks that they don't want to deal with Afghanistan, they might think the trade volume is low, but for us it is very important," he said.

The United States has issued exemptions to sanctions for humanitarian operations and at times helped facilitate specific transactions, such as an Afghan central bank payment to European companies to buy fresh bank notes.

But traders and international agencies say normal banking has not been restored, hampering the economy and causing headaches for traders and aid programs.

The United Nations, which uses billions of dollars a year to fund humanitarian operations, has to fly in pallets of cash in physical shipments to Kabul.

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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.

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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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Energy minister, Indian company talk handover of Arghandi 500 KV substation

Arghandi substation project is scheduled to be completed within two years, and it will supply electricity to Kabul and 12 provinces.

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Acting Minister of Energy and Water Abdul Latif Mansour has met and discussed with the head of Indian company Good Rich Logistic about the handover of the Arghandi 500 KV substation.

According to a statement released by the ministry, Mansour instructed the officials of the ministry to make the necessary preparations for the handover of the substation and transfer of its transformers.

Arghandi substation project is scheduled to be completed within two years, and it will supply electricity to Kabul and 12 provinces.

“The capacity of this line is about 1,000 megawatts of electricity. It can transfer electricity from Turkmenistan and Uzbekistan directly to Kabul, and from Kabul it can supply electricity to eastern, southern and even central provinces,” said Amanullah Ghalib, the former head of national power utility Da Afghanistan Breshna Sherkat (DABS).

Experts say the substation will help address shortage of electricity.

“The problem is that a large part of Afghanistan's energy is supplied from neighboring countries, and whenever these countries need energy domestically, they cut off Afghanistan's energy, and houses and factories face a significant shortage of electricity, “Aminullah Ehsaas, an expert on economic affairs, said.

Although Afghanistan has abundant resources for generation of electricity, it imports a large part of its electricity needs from neighboring countries and pays more than 300 million dollars annually to Uzbekistan, Tajikistan, Iran and Turkmenistan.

 

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Baradar hails Termez Trade Center as a ‘new chapter’ in Afghan-Uzbek partnership

This will positively impact the economic relations between the two countries and establish the center as a key economic hub and commercial gateway for Central and South Asian nations, he said.

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In a ceremony to inaugurate an international trade center in Uzbekistan’s border city of Termez on Thursday, Mullah Abdul Ghani Bardar, Deputy Prime Minister for Economic Affairs, said that the center marks a new chapter of friendship, cooperation and partnership between Afghanistan and Uzbekistan, laying the groundwork for long-term prosperity and development of both countries.

Baradar noted that the center will enhance investment opportunities, commercial relationships, and job creation in both nations, and will introduce new markets for products and goods, and, overall, accelerate economic growth, according to a statement released by his office.

Highlighting the importance of this center, Mullah Baradar mentioned that the center's inauguration would facilitate the production, processing, and export of goods, making it easier to access regional and global markets.

This will positively impact the economic relations between the two countries and establish the center as a key economic hub and commercial gateway for Central and South Asian nations, he said.

Furthermore, the trade center will strengthen joint cooperation between the two countries in the fields of technology and innovation.

According to Mullah Baradar, the center will create essential facilities and opportunities for Afghan and Uzbek traders, enabling them to find suitable markets for their products and actively contribute to the region's economic development.

He called on the international community to establish appropriate reciprocal economic and trade relations with the Islamic Emirate of Afghanistan, in line with its economy-focused policies, and assured that the Islamic Emirate is committed to providing all necessary support and facilitation in this regard.

The ceremony was also attended by senior officials of Uzbekistan, Azerbaijan, Kazakhstan and Kyrgyzstan.

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