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IEA’s finances in much better shape: The Economist

The Islamic Emirate of Afghanistan’s (IEA) finances appear to be in much better shape than expected, The Economist magazine said in an article published Wednesday.
The British media outlet said that when the IEA seized power, it seemed obvious that they would struggle to administer a country of 40 million, especially for lack of money.
“Yet the new government’s finances appear to be in much better shape than anybody expected,” the report read.
Last month IEA announced its first full-year budget, forecasting revenues of $2.1bn.
The World Bank’s estimate is more modest but still impressive: it reckons the government will collect about $1.7bn this year (about 12% of GDP) in domestic revenue, from things like taxes, customs and fees for services.
That is nearly three-quarters of the $2.3bn the previous government raised domestically in 2020, before business and trade dried up and many taxpaying Afghans left the country.
The previous government’s total funding including foreign finance came to $5.7 billion, but IEA do not have access to the grants and loans that made up the rest.
The Economist said that the IEA managing to keep revenue flowing despite the obstacle is “remarkable.” One reason for their success is that they have plenty of experience collecting taxes, it noted.
Moreover, a handful of holdovers from the former government are maintaining sophisticated financial-management software to run their revenue-collection systems.
IEA has also cracked down on graft, a serious problem under the previous government, The Economist noted.
IEA’s Ministry of Finance welcomed the report, saying the government was seeking to make Afghanistan self-reliant.
“IEA members together with former professionals are working in a brotherhood atmosphere and with it transparency has come and revenues have increased. We have stopped corruption that unimaginably existed in the ministry of finance,” said Ahmad Wali Haqmal, a spokesman of the Finance Ministry.
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Termez to host first dialogue on Central and South Asia connectivity
Forum discussions will center on the current state and future prospects of cooperation between the two regions, with a focus on enhancing security, stability, and sustainable development.

Uzbekistan will host the first Termez Dialogue on Connectivity between Central and South Asia from May 19 to 21.
The forum, with the “Building a Common Space of Peace, Friendship, and Prosperity” theme, is being jointly organized by the Institute for Strategic and Regional Studies under the President of Uzbekistan, the Ministry of Foreign Affairs of Uzbekistan, and the Chamber of Commerce and Industry of Uzbekistan.
The event is expected to bring together around 200 participants representing political, economic, and business circles, as well as financial institutions and think tanks from Central and South Asia, Europe, the CIS, Asia-Pacific, the Americas, and the Middle East.
Delegates will include government officials, industry leaders, international organizations, and prominent experts from global research and analytical centers.
The core objective of the Termez Dialogue is to establish a multilateral discussion platform for advancing regional integration and promoting the UN General Assembly resolution “Strengthening the Connectivity between Central and South Asia,” adopted in 2022 at the initiative of President Shavkat Mirziyoyev of Uzbekistan.
Forum discussions will center on the current state and future prospects of cooperation between the two regions, with a focus on enhancing security, stability, and sustainable development.
Special attention will also be given to increasing the role of the private sector and financial institutions in driving regional economic growth.
One of the key anticipated outcomes of the forum is the adoption of a Communiqué encouraging joint efforts to strengthen trust and cooperation between Central and South Asia.
The Termez Dialogue is envisioned as a permanent platform for fostering strategic dialogue, identifying new opportunities for interregional cooperation, and promoting long-term peace and stability across the Eurasian continent.
A high level delegation from Afghanistan is also expected to attend the dialogue.
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Energy Minister Mansoor meets with Afghan investors in Tashkent

Acting Minister of Energy and Water Abdul Latif Mansoor visited the Afghan Embassy during his official trip to Uzbekistan and met with Abdul Ghaffar Bahr, the Islamic Emirate’s ambassador to Tashkent, embassy officials and several Afghan investors.
In a statement issued by the Afghan energy ministry on Wednesday, Mansoor assured the Afghan investors living in Tashkent that IEA is providing the necessary facilities for their investment in Afghanistan.
He urged them to invest in the country’s energy and water sectors, adding that Afghanistan now presents a good opportunity for investors due to improved security.
He emphasized that the IEA is committed to supporting the private sector and has created legal, technical, and administrative facilities for investors.
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Iran plans to invest $5 billion in Afghanistan’s iron mines

Iranian media have reported that the country is investing $5 billion in Afghanistan’s iron mines.
Alireza Bikdeli, acting ambassador of Iran in Kabul, stated that Afghanistan’s rich mineral resources present an opportunity for cooperation between the two neighboring countries.
He added that this investment would enhance Iran’s position in global steel production.
Fars News Agency reported that, given Iran’s increasing need for raw materials in its mining industries, the investment is expected to yield up to sixfold returns.
Iran imports each ton of Afghan iron mine at a price of $100 and exports it as steel at a final price of $600.
According to the latest data from Afghanistan’s Ministry of Mines, Iran has invested $2.3 billion in the country’s mining sector, including iron, over the past several years.
Abdul Nasir Reshtia, the executive director of the Union of Iron Smelting Factories, said: “If the country’s mines are extracted in a technical and professional manner, and all processing and production stages are carried out domestically, we will witness significant economic effectiveness.”
Reports indicate that the Iran-Afghanistan cooperation agreement on iron ore mining is a five-year contract, expected to generate $1.2 billion in annual profit for Iran.
Over the past three years, Iran-Afghanistan relations have expanded, with bilateral trade reaching $4 billion annually.
Meanwhile, Iranian officials have granted their border provinces the authority to fully utilize all resources to enhance relations with Afghanistan’s border provinces, particularly in the economic and trade sectors.
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