Business

Mps concern over privatization of New Kabul Bank

Published

10 years ago

April 12, 2016

Last Updated on: October 25, 2022

Members of the parliament have expressed their concerns over privatization of the New Kabul Bank which is probably to be sold to a Pakistani Bank called Muslim Commercial Bank, fearing that Pakistan intelligent office will have longer hands into Afghanistan confidential information.

Earlier last week officials in Ministry of Finance had announced that MCB and the local firm, Join-Stock, are eligible buyers, the announcement had provoked many reactions within the Afghan Government and economy expert’s level.

Afghan economical expert Sayed Masoud said,” Muslim Commercial Bank is one of the Military Bank of Pakistan, Afghan President should considerate over the issue, since the New Kabul Bank has 80 agencies Nationwide only for Afghan military forces if the following Bank is owned it will disclose all the secret information of Afghan military forces to Pakistan.”

“Countries in the world in order to gain secret information spend millions of dollars to meet their goals , but Afghanistan Government is allowing Pakistan to access confidential information free of charge economy expert Azarakhsh Hafizi said,”

Mp Ghulam Farooq Majroh said,” Pakistan has been continuously working against Afghanistan’s National interests, we should let Pakistan to have hands in our Banking system.”

Meanwhile Ministry of Finance Spokesman Ajmal Abdulrahimzai said,” if any banks doesn’t have criminal cases in the past and can meet our requirement will be eligible to be one of the buyers.”

Kabul Bank is a commercial bank in Afghanistan that has its main branch in the capital of Kabul. Established in 2004, from the beginning the following main bank used to pay the salaries of the army and security forces.

The bank provides facilities to maintain accounts in Current, Savings Bank and Fixed Deposits; and offers its consumers branch and automated teller machine services.

The bank was under the supervision of Da Afghanistan Bank (DAB), the central bank of Afghanistan.

The scandal has not only earned bad image for the country but also pushed investors away. Even the bailout failed to address the economic crunch and restore customers’ trust over the country’s largest private bank. It is a biggest scandal in Afghanistan’s banking sector history.

Kabul Bank was badly shaken and almost collapsed in one of “the worst banking scandals in history,” according to The Guardian newspaper in late 2012, according to the Los Angeles Times, independent investigators and journalists uncovered widespread corruption in Kabul Bank.

The New York Times, in 2012, headlines indicate “Audit Says Kabul Bank Began as ‘Ponzi Scheme’” following investigation and judicial action in the aftermath of the Bank’s crisis and scandal.

In 2010, it was disclosed that its Chairman Sherkhan Farnood and other insiders were spending the bank’s US$1 billion for their own personal lavish style living and lending money under the table to family, relatives and friends.

The bank scandal also involved members of Afghan President Karzai’s family, including one of his brothers, Mahmood Karzai. In September 2010, one of the principal owners of the bank, said that depositors had withdrawn $180 million in two days and predicted a “revolution” in the country’s financial system unless the Afghan government and the United States moved quickly to help stabilize the bank.

In November 2010, reports appeared that Farnood and chief executive Khalilullah Frozi both had been sacked from duties.

As of early 2011 both were effectively under house arrest and could not leave the country, and in July 2011 both were formally arrested and detained in Kabul.

DAB stated in February 2011, it would seek to sell Kabul Bank within three years once it was rehabilitated, but both the International Monetary Fund and US officials subsequently pressed for a rapid wind down of the institution.

Several influential people were involved in the scandal. Therefore, the government failed to catch and punish the bigwigs. Sadly, the authorities were not serious to build confidence to investors. They tried to rebuild the bank’s image by adding ‘New’ to its name though the bank has nothing new to offer.

A USAID inspector general report estimated that fraudulent loans diverted $850 million to bank insiders.[8] By October 2011, more than a year after the government seized control, officials had recovered less than 10 percent of the nearly $1 billion that went missing.

After the huge scandal of New Kabul Bank the Afghan Government decided to start bidding process to sell the following Bank to any firms that can meet the conditions.

Business

Pakistan allows re-export of stranded Afghan transit cargo

The suspension of Afghan Transit Trade operations left thousands of containers stuck, causing heavy financial losses for Afghan traders and disrupting regional commerce.

Published

4 days ago

February 19, 2026

Ariana News

Pakistan’s Federal Board of Revenue (FBR) has allowed the re-export of Afghan transit trade consignments that had been stranded for months at Chaman and Quetta, enabling their movement to Karachi Port and Port Qasim.

The shipments were halted after crossings between Afghanistan and Pakistan were closed in October 2025 amid escalating security tensions.

The suspension of Afghan Transit Trade operations left thousands of containers stuck, causing heavy financial losses for Afghan traders and disrupting regional commerce.

Under the new directive, stranded goods will be transported under customs supervision to Karachi for re-export. Pakistani authorities said the process will follow strict monitoring and inspection procedures to ensure compliance with transit regulations.

The decision offers limited relief to Afghan businesses affected by the prolonged disruption, though regular trade between the two countries has yet to resume.

Business

Afghanistan’s 2026 Development Framework meeting highlights self-reliance and economic stability

The Ministry said these measures helped preserve relative economic stability and deliver stronger economic growth compared with the previous year.

Published

5 days ago

February 18, 2026

Ariana News

The Ministry of Economy of Afghanistan says a coordination meeting on the United Nations’ 2026 Development Framework for Afghanistan was held under the chairmanship of Qari Din Mohammad Hanif, Minister of Economy, focusing on advancing national development priorities and long-term economic stability.

The meeting was attended by representatives from the Ministry of Foreign Affairs, the United Nations Assistance Mission in Afghanistan (UNAMA), heads of UN agencies operating in the country, delegates from the European Union, and a range of international organizations.

During the session, the Minister of Economy outlined Afghanistan’s current situation, recent achievements, and key economic priorities, while expressing appreciation for the continued support of international partners during challenging years.

According to the Ministry, Afghanistan faced severe economic, social, and climate-related pressures in 2025.

These included the impacts of climate change and natural disasters, the forced return of more than two million Afghan migrants from neighboring countries, ongoing sanctions, frozen foreign reserves, and a sharp decline in development and humanitarian assistance. Together, these factors have significantly affected the livelihoods of vulnerable communities.

Despite these challenges, the Islamic Emirate has implemented a series of economic and development programs centered on prudent policymaking and national priorities.

The Ministry said these measures helped preserve relative economic stability and deliver stronger economic growth compared with the previous year.

Improved economic governance, support for domestic production and the private sector, exchange rate stability, export growth, national infrastructure projects, inflation control, and increased domestic revenues were cited as key contributors.

The Ministry also highlighted the role of the United Nations in addressing urgent humanitarian needs, noting that UN assistance has been critical in responding to climate impacts, supporting migrants and returnees, strengthening food security and livelihoods, delivering basic health services, and reducing overall human suffering.

Data from the Ministry of Economy show that around $1.009 billion in international assistance was allocated to Afghanistan in 2025 across various sectors, with approximately $590 million earmarked for project expenditures. However, figures from the UN Office for the Coordination of Humanitarian Affairs indicate a significant drop in humanitarian funding, with only 36 percent of the $2.4 billion required having been secured.

The Ministry emphasized that sustainable economic stability can only be achieved through self-reliance, growth-driven economic policies, and constructive engagement with the international community.

Afghanistan’s Development Strategy, a long-term framework developed under the leadership of the Economic Deputy of the Prime Minister and coordinated by the Ministry of Economy, aims to promote balanced development, job creation, poverty reduction, infrastructure expansion, private sector support, and environmental protection.

Business

Afghan delegation visits Belarus to strengthen economic and industrial ties

The delegation also visited major state and industrial enterprises, including, the State Chemical Service, and agricultural farms under the Ministry of Agriculture.

Published

6 days ago

February 17, 2026

Ariana News

A high-level delegation from the Islamic Emirate of Afghanistan, led by Ahmad Jan Balal, head of the Emirati Companies, and Abdul Rahman Atash, CEO of the National Development Company, accompanied by representatives from the Ministry of Foreign Affairs and technical teams, visited Belarus to advance bilateral cooperation.

According to Nabiullah Arghandiwal, spokesperson for the National Development Company, the Afghan delegation held meetings with officials from Belarus’ Ministries of Foreign Affairs, Agriculture, and Industry to discuss political, economic, and trade-related issues.

The delegation also visited major state and industrial enterprises, including, the State Chemical Service, and agricultural farms under the Ministry of Agriculture.

Arghandiwal added that both sides agreed to strengthen and expand technical collaboration in the fields of industry, agricultural machinery, construction materials, food safety, public health, and education, aiming to enhance long-term economic and industrial partnerships between the two nations.

give me english hashtags with coma in between the words