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SIGAR urges tighter VIP control to stop cash smuggling through airport

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(Last Updated On: January 21, 2021)

Despite efforts by the Afghan government to reduce the flow of cash out of the country’s busiest international airport, significant control weaknesses continue to exist at Hamid Karzai International Airport in Kabul, the Special Inspector General for Afghanistan Reconstruction (SIGAR) reported Thursday.

Cash counting machines, which were funded by the US government, are not being used for the purposes intended and the only cash counting machine confirmed to be working is in the arrival entrance, instead of the departure area where strict cash controls are most needed to help prevent cash smuggling, SIGAR reported.

In addition, the machines lack connectivity to the Internet, which in turn prevents Afghan investigative authorities from tracking currency suspected of being laundered.

“The absence of fully functional and strategically positioned cash counting machines, and declaration forms in the VIP section along with the limited screening of VIP passengers – who are most likely to have large amounts of cash – severely limits the Afghan government’s ability to fully implement its anti-money laundering laws at the airport,” John F. Sopko, Special Inspector General for Afghanistan Reconstruction stated in the report.

To improve screening procedures at Hamid Karzai International Airport, SIGAR suggested the Afghan government take the following two actions:

1. Fully integrate cash counting machines with functioning Internet capability into the normal customs process both at the non-VIP and VIP terminals to better ensure that all declared and detected currency is counted, and serial numbers captured, for use by FinTRACA and its international partners.
2. Strengthen controls at the VIP terminal by requiring all VIP and VVIP passengers to fill out customs declaration forms, and have airport staff count any cash declared and send serial numbers to FinTRACA.

Sopko stated: “We provided a draft copy of this report to the [US] Department of Homeland Security (DHS) and Department of State (DOS) for comments on December 21, 2020, and the Afghan government for comments on December 22, 2020.

“DHS provided technical comments for incorporation in the report on January 8, 2021, which we
incorporated as appropriate. The Department of State informed SIGAR on January 8, 2021 that it does not have any technical comments.

“As of the publication of this report, the Afghan government did not provide any comment on the report nor on the matters for its consideration,” Sopko stated.

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Five countries eager to invest in lithium mines in Nuristan: officials

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(Last Updated On: March 24, 2023)

The Islamic Emirate officials say five countries are interested in investing in the “lithium” mining sector in Afghanistan’s Nuristan province.

Mohammad Yunus Rashid, the deputy of youth in the Ministry of Information and Culture, said that Japan, the US, China, Qatar and the United Arab Emirates are among the countries that are interested in investing in the mining sector of lithium mines in Nuristan province.

“There is a lot of interest in lithium mining at the global level, five countries have made contact with the Islamic Emirate and said that they are ready to invest in this sector,” said Rashid.

According to officials, there are high capacities for economic self-sufficiency in the country and positive changes will be made in the economic development of the country in the near future.

Economic experts meanwhile believe that if the extraction and processing of the country’s minerals are done in Afghanistan, the country can get out of the economic crisis very quickly.

“There are trillions of dollars of capacity in Afghanistan’s mines, which should be invested, the statistics should be accurate, the regions should be determined, in which areas we have what kind of mines,” said Kamaluddin Kakar, an economic expert.

In addition, members of the private sector say they are trying to invest jointly and individually with foreign investors in the mining sector. They call on the Islamic Emirate to hand over mining contracts to companies that have the ability to process in the country.

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Customs duties on essential food items drops by up to 70%

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(Last Updated On: March 20, 2023)

The Ministry of Finance said that based on the decision of the leadership of the Islamic Emirate of Afghanistan, customs duties on basic food items have dropped by between 50 and 70 percent in the last solar year.

As a result of this decision customs duties have been reduced to the value of 6.7 million afghanis this year, the ministry said.

The decision to decrease customs duties on the food items that include flour, wheat, cooking oil, rice, and sugar, was to keep the prices down on local markets.

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Kunduz commerce department’s revenues rise by 48%

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(Last Updated On: March 19, 2023)

Kunduz Directorate of Industry and Commerce officials say their revenues have increased by 48 percent this solar year.

According to officials, the institution has collected more than 12 million Afghanis from the extension and distribution of licenses to manufacturing companies.

Mohammad Rahim Sirat, head of Kunduz Directorate of Industry and Commerce, said they distributed licenses to 112 people and renewed the licenses for 303 people.

Meanwhile, Kunduz Municipality officials also announced that they have collected 120 million Afghanis in 11 months of the current solar year, which shows a 40 percent increase compared to the same period last year.

Tajuddin Sohak, the spokesman for Kunduz Municipality, said they collected 120 million Afghanis this year, which shows a 40 percent increase from 86 million afghanis last year.

But shopkeepers and owners of manufacturing companies in Kunduz complain about the lack of a market for their products. They say that in the past their goods used to be exported abroad, but now exports have declined.

“In the past, we used to export to Iran, Pakistan, and Iraq, but our exports have decreased compared to the past. We ask the government to cooperate with us to provide the basis for export,” Wasim Akram, an entrepreneur, said.

Local officials in Kunduz say they have always tried to facilitate trade. They express hope that in the new year their efforts for foreign marketing of manufacturing companies will produce good results.

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