Business
IEA signs Amu River basin oil extraction contract with Chinese company
Islamic Emirate of Afghanistan’s (IEA) officials signed a contract on Thursday with China’s CAPEIC (Xinjiang Central Asia Petroleum and Gas Co) Company for the extraction of oil in the Amu River basin, which covers a large area across parts of three northern provinces.
The signing ceremony was held at the Government Information and Media Center (GMIC) in Kabul, in the presence of Mullah Abdul Ghani Baradar Akhund, the Economic Deputy of the Prime Minister, and China’s ambassador to Kabul.
Speaking at the event, Sheikh Shahabuddin Delawar, the Minister of Mines and Petroleum, said: “According to the order of the Supreme Leader and the guidance of the Prime Minister and the Economic Deputy of the Ministry, today we will sign an oil extraction contract with a Chinese company.”
The ministry said oil will be extracted from an area covering 4,500 square kilometers across parts of Sar-e-Pul, Jawzjan and Faryab provinces.
Delawar said the rate of oil extraction will be from 1,000 to 23,000 tons per day and the company will invest up to $150 million dollars a year, which will increase to $540 million dollars in three years.
According to the contract, the Islamic Emirate will own a 20 percent share in the oil fields, but that in time this percentage will increase to 75 percent.
Delawar also said that 3,000 jobs will be created for Afghans. However, if skilled labor is not available in Afghanistan, then China will be able to import workers, he added.
He also said that it was agreed that if the Chinese company does not fulfill all its requirements within a year, the contract will automatically be canceled.
Mullah Abdul Ghani Baradar Akhund also spoke at the event and said that in the past year, work has been done to promote development in the country.
“Recently, several projects were approved by the Economic Commission, and with their implementation, fundamental steps will be taken regarding the prosperity of the country and public welfare,” Baradar said.
He said the signing of Thursday’s contract was an important step towards the country obtaining self-sufficiency. He also called on the Chinese company to work in accordance with international standards and to provide local people with public benefits.
Baradar also told the ministry of mines to closely monitor developments at the oil field so as to ensure the Chinese company fulfills its obligations.
China’s Ambassador to Afghanistan Wang Yu meanwhile said: “This contract is important for the economic growth and self-sufficiency of Afghanistan and is a good example of cooperation and interaction between the two countries.”
Wang asked the contracting company to carefully perform the assigned tasks according to the provisions of the contract and also asked the ministry to provide the framework for the effective implementation of the contract and to work closely with the contracting company.
Business
Iraqi intelligence report alleges oil smuggling network supplying Afghanistan and Turkey through Iran
The report highlights broader challenges facing regional authorities in combating illicit oil trade and enforcing international sanctions.
An Iraqi intelligence report obtained by Sky News Arabia has revealed alleged large-scale crude oil smuggling operations from northern Iraq into Iran, where the oil is reportedly refined and later sold in regional markets, including Afghanistan and Turkey.
According to the report, shipments of crude oil are transported through land routes and unofficial trade channels into Iranian territory, where they undergo refining and processing before being re-exported to foreign markets.
The intelligence findings suggest that the alleged network is designed to bypass international sanctions and facilitate the movement of petroleum products outside official trade and financial monitoring systems.
The report further indicates that smuggling networks rely on informal transportation routes and cross-border commercial channels to maintain the collection, processing and distribution of oil products while avoiding regulatory oversight.
The revelations have raised concerns over cross-border smuggling, the loss of national resources and the potential impact of illicit oil trade on regional economies.
Security and political observers say the reported activities could put additional pressure on Iraqi authorities to strengthen border controls, monitor oil transportation routes and improve coordination with regional and international partners.
However, the allegations outlined in the intelligence report have not been independently verified, and further details about the networks involved, the quantities of oil transported and the scale of supplies reaching Afghanistan and Turkey remain unclear.
The report highlights broader challenges facing regional authorities in combating illicit oil trade and enforcing international sanctions.
Business
$30 million pharmaceutical investment launched in Herat as new production line opens
Meanwhile, the newly inaugurated serum and injectable production line is capable of producing up to 100,000 packages of serum per day.
The foundation stone has been laid for three new pharmaceutical production blocks at Ovison Pharma in Herat, with an investment of $30 million, while the factory’s new serum and injectable production line has also been inaugurated.
The new production blocks will be constructed on a 3,000-square-metre site, with each facility planned to have five floors. Equipped with advanced machinery and designed to meet international standards, the expansion is expected to significantly increase the factory’s pharmaceutical production capacity.
Meanwhile, the newly inaugurated serum and injectable production line is capable of producing up to 100,000 packages of serum per day.
The expansion marks a significant step toward strengthening Afghanistan’s pharmaceutical industry, increasing domestic production and reducing the country’s reliance on imported medicines.
The investment is also expected to support the development of local manufacturing capacity and improve access to domestically produced pharmaceutical products.
Business
Afghanistan approves new foreign investment policy in bid to attract international investors
The decisions have been forwarded to the office of the Supreme Leader of the Islamic Emirate for final approval.
Afghanistan’s Economic Commission has approved a new foreign investment policy aimed at attracting international investors, improving investment opportunities and supporting the country’s economic growth.
The decision was made during the commission’s regular meeting, chaired by Mullah Abdul Ghani Baradar, Deputy Prime Minister for Economic Affairs, at the Marble Palace on Monday.
According to the Deputy Prime Minister’s Office for Economic Affairs, the proposed policy was presented by a committee established under the leadership of the economic deputy office. Following a comprehensive review and consideration of the commission’s recommendations, the policy was approved.
The policy aims to regulate foreign investment activities, facilitate investment procedures, create a favourable environment for investors, ensure investment security and promote Afghanistan’s economic growth and development.
During the meeting, the commission also approved a proposal concerning the payment of fixed taxes by commercial import companies at the country’s customs offices.
Officials said implementing the proposal would create additional facilities and simplify procedures for importing businesses.
The decisions have been forwarded to the office of the Supreme Leader of the Islamic Emirate for final approval.
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