Business
SIGAR finds over $2 billion in capital assets wasted in Afghanistan
The Special Inspector General for Afghanistan Reconstruction (SIGAR) has found that of the nearly $7.8 billion in capital assets in Afghanistan, paid for by the US, about $2.4 billion in assets is unused, abandoned, or destroyed.
The report to Congress released on Monday morning summarizes all capital assets in Afghanistan paid for by US agencies that SIGAR found in its prior work to be “unused, not used for their intended purposes, deteriorated or destroyed.”
The capital assets reviewed were funded by the US Department of Defense, USAID, OPIC, and the State Department to build schools, prisons, a hotel, hospitals, roads, bridges, and Afghan military facilities.
The report stated that of the nearly $7.8 billion in capital assets reviewed in its prior reports, SIGAR identified about $2.4 billion in assets that were unused or abandoned, had not been used for their intended purposes, had deteriorated, or were destroyed.
SIGAR also found that more than $1.2 billion out of the $7.8 billion in assets were being used as intended, and only $343.2 million out of the $7.8 billion in assets were maintained in good condition.
Most of the capital assets not used properly or in disrepair or abandoned are directly related to US agencies not considering whether the Afghans wanted or needed the facilities, or whether the Afghan government had the financial ability and technical means to sustain them, the report read.
It also stated that this waste of taxpayer dollars occurred despite multiple laws stating that US agencies should not construct or procure capital assets until they can show that the benefiting country has the financial and technical resources, and capability to use and maintain those assets effectively.
According to Special Inspector General John F. Sopko, “SIGAR’s work reveals a pattern of US agencies pouring too much money, too quickly, into a country too small to absorb it.”
“The fact that so many capital assets wound up not used, deteriorated, or abandoned should have been a major cause of concern for the agencies financing these projects.
“The lesson of all of this is two-fold. If the United States is going to pay for reconstruction or development in Afghanistan or anywhere else in the world, first make certain the recipient wants it, needs it, and can sustain it. Secondly, make certain before you spend the money there is proper oversight to prevent this type of waste,” Sopko said.
Business
Iraqi intelligence report alleges oil smuggling network supplying Afghanistan and Turkey through Iran
The report highlights broader challenges facing regional authorities in combating illicit oil trade and enforcing international sanctions.
An Iraqi intelligence report obtained by Sky News Arabia has revealed alleged large-scale crude oil smuggling operations from northern Iraq into Iran, where the oil is reportedly refined and later sold in regional markets, including Afghanistan and Turkey.
According to the report, shipments of crude oil are transported through land routes and unofficial trade channels into Iranian territory, where they undergo refining and processing before being re-exported to foreign markets.
The intelligence findings suggest that the alleged network is designed to bypass international sanctions and facilitate the movement of petroleum products outside official trade and financial monitoring systems.
The report further indicates that smuggling networks rely on informal transportation routes and cross-border commercial channels to maintain the collection, processing and distribution of oil products while avoiding regulatory oversight.
The revelations have raised concerns over cross-border smuggling, the loss of national resources and the potential impact of illicit oil trade on regional economies.
Security and political observers say the reported activities could put additional pressure on Iraqi authorities to strengthen border controls, monitor oil transportation routes and improve coordination with regional and international partners.
However, the allegations outlined in the intelligence report have not been independently verified, and further details about the networks involved, the quantities of oil transported and the scale of supplies reaching Afghanistan and Turkey remain unclear.
The report highlights broader challenges facing regional authorities in combating illicit oil trade and enforcing international sanctions.
Business
$30 million pharmaceutical investment launched in Herat as new production line opens
Meanwhile, the newly inaugurated serum and injectable production line is capable of producing up to 100,000 packages of serum per day.
The foundation stone has been laid for three new pharmaceutical production blocks at Ovison Pharma in Herat, with an investment of $30 million, while the factory’s new serum and injectable production line has also been inaugurated.
The new production blocks will be constructed on a 3,000-square-metre site, with each facility planned to have five floors. Equipped with advanced machinery and designed to meet international standards, the expansion is expected to significantly increase the factory’s pharmaceutical production capacity.
Meanwhile, the newly inaugurated serum and injectable production line is capable of producing up to 100,000 packages of serum per day.
The expansion marks a significant step toward strengthening Afghanistan’s pharmaceutical industry, increasing domestic production and reducing the country’s reliance on imported medicines.
The investment is also expected to support the development of local manufacturing capacity and improve access to domestically produced pharmaceutical products.
Business
Afghanistan approves new foreign investment policy in bid to attract international investors
The decisions have been forwarded to the office of the Supreme Leader of the Islamic Emirate for final approval.
Afghanistan’s Economic Commission has approved a new foreign investment policy aimed at attracting international investors, improving investment opportunities and supporting the country’s economic growth.
The decision was made during the commission’s regular meeting, chaired by Mullah Abdul Ghani Baradar, Deputy Prime Minister for Economic Affairs, at the Marble Palace on Monday.
According to the Deputy Prime Minister’s Office for Economic Affairs, the proposed policy was presented by a committee established under the leadership of the economic deputy office. Following a comprehensive review and consideration of the commission’s recommendations, the policy was approved.
The policy aims to regulate foreign investment activities, facilitate investment procedures, create a favourable environment for investors, ensure investment security and promote Afghanistan’s economic growth and development.
During the meeting, the commission also approved a proposal concerning the payment of fixed taxes by commercial import companies at the country’s customs offices.
Officials said implementing the proposal would create additional facilities and simplify procedures for importing businesses.
The decisions have been forwarded to the office of the Supreme Leader of the Islamic Emirate for final approval.
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