Business
IEA welcomes World Bank report on Afghanistan’s economy
The Deputy Prime Minister for Economic Affairs of Islamic Emirate of Afghanistan (IEA) on Thursday welcomed the recent World Bank report on Afghanistan’s economy.
The office says that facts related to the country’s economic situation are reflected in the report.
Mullah Abdul Ghani Baradar’s office said in a statement that “the Islamic Emirate believes that if the international community pays attention to positive interaction instead of imposing restrictions, Afghanistan will progress further in the economic field and the burden of responsibility on the shoulders of the international community will be reduced.”
“If all international organizations such as the World Bank present a true picture of the concrete realities of Afghanistan, the way of positive interaction with the Islamic Emirate will be paved,” the statement read.
The World Bank report states that Afghanistan’s exports and imports have increased, monetary stability has been maintained, and domestic revenues have increased.
According to the report, during January to April 2023, imports stood at $2.4 billion, reflecting a 27 percent growth against the same period last year.
Iran remains the most significant import origin country (21 percent), followed by Pakistan (18 percent), China (16 percent), and the United Arab Emirates (13 percent), the World Bank reported.
However, the Jan-Apr 2023 merchandise trade deficit at $1.8 billion is 38 percent higher than the $1.3 billion observed in the comparable period of 2022.
Unofficial data for January to April this year indicates that Afghanistan’s customs show total exports reached $0.6 billion — a 4 percent rise compared to the same period in 2022.
The export growth during Jan-Apr 2023 can primarily be attributed to an increase in the exports of coal, by 13 percent, and textiles by 14 percent, the report stated.
Pakistan remains Afghanistan’s largest export market accounting for 63 percent of total exports, followed by India (26 percent). Exports to Pakistan are mainly food and coal. Coal exports to Pakistan amounted to $140.7 million in Jan- Apr 2023 – 13 percent higher than the coal exports in the comparable period last year.
Business
Ministry of commerce allocates land for oil refineries
Acting Minister of Industry and Commerce Nooruddin Azizi, said in a meeting with oil refinery officials that as soon as they are ready to invest, the ministry will establish an oil and gas industrial park.
In this meeting, refinery officials discussed problems regarding the Qashqari oil field and agreed that land should be provided. They said oil extracted from Qashqari needed to be refined through the standard process.
Azizi, while announcing the cooperation and support of the Islamic Emirate and especially the Ministry of Commerce and Industry for the private sector of the country, said: “A joint proposal should be arranged and submitted to this ministry for the land of the refineries, and also if the officials of the refineries are ready to invest in the area of Dara-e-Hairatan, an oil and gas industrial park will be created and the land will be placed under their control.”
Azizi emphasized the need to increase the capacity of existing refineries and the quality of oil, shared the decision of the High Economic Commission regarding the establishment of a large refinery.
Business
Pakistan’s Federal Secretary of Commerce invited to visit Kabul
Acting Minister of Industry and Commerce, Nooruddin Azizi, has invited Pakistan’s Federal Secretary of Commerce Mohammad Khurram Agha to visit Kabul.
In a virtual meeting, the two sides discussed the progress made in the last two and a half years in the country, the increase in trade between the two countries, solving problems and removing trade and transit barriers.
They also discussed the need for more facilities, establishing close relations between the governments and private sectors of the two countries and boosting regional cooperation, the Ministry of Industry and Commerce said in a statement Monday.
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.
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