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Indian dry fruit traders upset over partial resumption of Afghan banking system

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Local dry fruit traders are concerned about the partial resumption of the banking system of Afghanistan since the Islamic Emirate of Afghanistan’s (IEA) takeover in August last year.

Dry fruit traders said this week that only two weeks ago did Ghazanfar Bank in Kabul start accepting foreign transfers. Since August last year, traders have been forced to pay for goods by sending money via Gulf States, they said.

One Indian trader, BK Bajaj, said his counterparts in Afghanistan asked him to send some payments through Ghazanfar Bank but that the majority of payments continue to be routed through Gulf countries.

India imports around $500 million worth of dry fruit from Afghanistan every year.

Afghanistan’s banking system came to a virtual standstill in the wake of the fall of the previous government, and has only slowly resumed some services in recent months.

Indian traders said initially, Afghan dry fruit suppliers provided goods on credit until they were able to have money transferred to Gulf countries.

Afghanistan’s banking system took a beating following the take over by the IEA, when the international community immediately applied sanctions on the country. Countries like the US and EU and institutions like the IMF and World Bank stopped any financial engagement in the country, which severely limited the amount of foreign dollars entering the country.

Most notably, the Federal Reserve Bank of New York froze some $9 billion of the country’s total $10.5 billion in assets of the country’s federal reserve. This has had a severe impact on the country and cut foreign trade considerably.

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World Bank clarifies role in payments for Afghanistan projects

The World Bank said the payments concern outstanding debts owed by the former government of Afghanistan to contractors hired under World Bank-financed projects.

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The World Bank said on Monday that payments being made to contractors for projects in Afghanistan related to work done prior to the collapse of the former government and that this was money owed to them.

The World Bank said the payments concern outstanding debts owed by the former government of Afghanistan to contractors hired under World Bank-financed projects.

These contractors completed their work before August 15, 2021, the World Bank said.

The contracts were made between the Afghan government and the contractors, making the government responsible for these payments, not the World Bank.

The World Bank said however it is helping to facilitate the payment process on an exceptional basis after thorough validation and independent verification.

The Bank is not a party to the contracts.

The institution said recent statements about this process and technical coordination reflect progress but noted that no restart of previous projects has been discussed or agreed upon.

 

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India allows entry of 160 Afghan trucks via Pakistan border

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A day after a rare phone call between Acting Afghan Foreign Minister Amir Khan Muttaqi and his Indian counterpart Subrahmanyam Jaishankar, India has allowed 160 trucks carrying Afghan goods to enter through the Wagah border with Pakistan.

The trucks had been held up due to heightened military tensions between India and Pakistan following a deadly attack in Indian-administered Kashmir.

The conversation between Muttaqi and Jaishankar marks the highest-level political contact between New Delhi and the Islamic Emirate since its return to power in Kabul in 2021.

Although India has yet to formally recognize the Islamic Emirate as the official government of Afghanistan, it is reportedly exploring options to resume stalled development projects in Afghanistan and deepen cooperation in specific sectors.

According to The Times of India, Indian officials are also considering the possibility of extending humanitarian assistance to Afghan refugees recently deported from Pakistan.

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Kabul and Moscow ink five MoUs on trade, transit and energy

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The Economic Deputy Office of the Prime Minister said on Friday that Mullah Abdul Ghani Baradar and Russian Deputy Prime Minister Alexei Overchuk signed five memoranda of understanding in various sectors on the sidelines of the 16th Kazan International Economic Forum.

According to a statement from the PM’s office, these agreements were signed on Friday after the Afghanistan–Russia Business Forum held in Kazan, Republic of Tatarstan.

“The agreements cover cooperation between Afghanistan’s Ministry of Transport and Aviation and the Ministry of Transport of the Russian Federation in the areas of transport and transit; expansion of trade relations between the chambers of commerce of both countries; cooperation between several major private companies of the two countries in the exploration, extraction, and refining of oil and gas in Afghanistan; and the development of regional trade and the establishment of an industrial-logistical complex,” the statement read.

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