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Pakistan Airlines suspends Afghan operations citing IEA interference

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Last Updated on: October 15, 2021

Pakistan International Airlines (PIA) suspended flights to the Afghan capital, Kabul, on Thursday after what it called heavy handed interference by Islamic Emirate of Afghanistan (IEA) authorities.

The suspension took place after the IEA government ordered the airline, the only international company operating regularly out of Kabul, to cut ticket prices to levels seen before the fall of the Western-backed Afghan government in August.

“We are suspending our flight operations to Kabul from today because of the heavy handedness of the authorities,” a spokesman told Reuters.

Earlier, the IEA warned PIA and Afghan carrier Kam Air that their Afghan operations risked being blocked unless they agreed to cut ticket prices, which have spiralled to levels out of reach for most Afghans.

With most airlines no longer flying to Afghanistan, tickets for flights to the Pakistani capital, Islamabad, have been selling for as much as $2,500 on PIA, according to travel agents in Kabul, compared with $120-$150 before.

The Afghan transport ministry said in a statement prices on the route should “be adjusted to correspond with the conditions of a ticket before the victory of the Islamic Emirate” or the flights would be stopped.

It urged passengers and others to report any violations.

PIA, which runs chartered flights to Kabul rather than regular commercial services, said it had maintained the flights on “humanitarian grounds” and faced insurance premiums of as much as $400,000 per flight, Reuters reported.

“The insurance premiums on these flights are so high that it is simply impossible to operate scheduled flights to Kabul, as it is still considered a war zone by aircraft insurance companies and lessors,” the company said in a statement.

No comment was immediately available from Kam Air.

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Afghanistan raises import tariffs on several goods to support domestic industry

Under the new rates, the customs tariff on bottles has increased from 12% to 16%, while the tariff on construction paint has risen from 16% to 30%.

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Afghanistan’s Ministry of Finance says it has increased customs tariffs on several imported goods as part of measures aimed at supporting domestic production and industrial growth.

The ministry said the Tariff Committee approved the changes during its third meeting of the 1405 solar year.

Under the new rates, the customs tariff on bottles has increased from 12% to 16%, while the tariff on construction paint has risen from 16% to 30%.

Tariffs on leather footwear and plaster have each increased from 50% to 80%, while the rate on sanitary diapers has risen from 20% to 25%.

At the same time, the tariff on heart springs has been reduced from 8% to 3.5%.

The Ministry of Finance said customs tariffs on cement, iron pipes, refrigerators and raw materials used in carpet production are also under review.

According to the ministry, the tariff adjustments are intended to protect domestic industries, strengthen local production and create conditions for further growth in trade.

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Afghanistan-Kazakhstan trade reaches $581 million in six months

The latest discussions come as Kabul and Astana work on a bilateral economic cooperation roadmap, with the two countries aiming to increase annual trade to $3 billion.

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Trade between Afghanistan and Kazakhstan reached $581 million in the past six months, officials in Afghanistan’s western Herat province said.

The figure was discussed during a meeting between Herat Governor Noor Ahmad Islam Jar and a Kazakh delegation led by Yerkin Tukumov, Kazakhstan’s special representative for Afghanistan.

Tukumov stressed the need to expand transit capacity and remove customs barriers to facilitate increased trade between the two countries. He also invited Afghan officials to attend a joint economic meeting scheduled to take place in Kazakhstan.

Islam Jar highlighted Herat’s strategic location and security, describing the province as having significant potential to serve as a hub for investment and regional trade.

Afghanistan and Kazakhstan have previously discussed expanding trade in agricultural products, including Afghan agricultural exports in exchange for flour imports from Kazakhstan.

The two sides have also reached understandings on cooperation over the Torghundi-Herat railway project, which is intended to strengthen transport and trade links.

The latest discussions come as Kabul and Astana work on a bilateral economic cooperation roadmap, with the two countries aiming to increase annual trade to $3 billion.

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Ariana Afghan Airlines increases Kabul-Delhi cargo flights

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Ariana Afghan Airlines has increased cargo flights between Kabul and Delhi to facilitate the transportation of commercial goods and support Afghan traders.

In a statement issued Saturday, the airline said it will now operate two scheduled cargo flights daily on the Kabul-Delhi route, up from one flight per day previously.

The airline said Afghan traders and commercial companies can use the daily cargo services to transport their goods quickly, safely and reliably between Afghanistan and India.

Ariana Afghan Airlines said it is working to further expand and improve its air cargo services to support trade, meet the needs of Afghan traders and facilitate Afghanistan’s exports and imports.

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