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US explains purpose of new $3.5 billion Afghan Fund
The US State Department has officially announced the establishment of the international financing mechanism which will see $3.5 billion worth of Afghanistan’s frozen assets being used for the benefit of the people.
In a press briefing on Wednesday night, State Department spokesman Ned Price said: “Today, the Department of State and the Department of the Treasury, in coordination with international partners including the Government of Switzerland and Afghan economic experts, announced the establishment of a fund to benefit the people of Afghanistan.”
Price stated the US would like to thank the Swiss Government for its partnership to ensure this effort would be possible.
“This fund will protect and preserve the Afghan central bank reserves, while making targeted disbursements to help stabilize Afghanistan’s economy and, ultimately, support its people and work to alleviate the worst effects of the humanitarian crisis,” he said.
He stated the Islamic Emirate of Afghanistan (IEA) is “not a part of this financing mechanism and resources disbursed will be for the benefit of the Afghan people, with clear safeguards and auditing in place to protect against diversion or misuse.”
“And the US has made clear to the Taliban (IEA) that the onus is on them to make key reforms which we have outlined repeatedly,” he added.
Elaborating on when the funds will be disbursed, he said it “will take a little bit of time. We’re, of course, working as quickly as we can to do that.”
He stated however that the Afghan Fund is “explicitly not intended to make humanitarian disbursements. The Afghan Fund itself is to facilitate macroeconomic stability inside Afghanistan.”
Price said this meant the US will remain the largest humanitarian donor for the Afghan people.
“This is not what that fund is for. This fund is to provide macroeconomic stability in Afghanistan that will enhance the effectiveness of humanitarian assistance from the United States and other donors.”
On the remaining $3.5 billion of Afghanistan’s $7 billion frozen by the US, Price said this money “remains subject to litigation” and did not form part of the new fund.
The new fund does however have a vetted list of sources for disbursement, he said adding that possible scenarios could include using the fund to pay for electricity for example.
Price said “that is something that could – we could envision the fund doing. To pay arrears at international financial institutions, the types of activities that are separate and apart from the day-to-day welfare that our humanitarian assistance and the humanitarian assistance of the international community is designed for.”
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Afghan, Iranian ministers discuss agricultural exports and trade facilitation
Afghanistan’s Finance Minister Mohammad Nasir Akhund has met with Iran’s Agriculture Minister Gholamreza Nouri Ghezeljeh to discuss expanding bilateral economic and trade cooperation.
The meeting took place during Akhund’s official visit to Iran.
According to a statement from the Ministry of Finance, the discussions focused on preparations for the next meeting of the joint economic commission, exports of Afghan agricultural products to Iran, and ensuring 24-hour operations at customs facilities.
The two sides also discussed addressing challenges faced by Afghan traders, preventing the smuggling of illegal goods, and other trade and economic issues.
Iran’s agriculture minister expressed readiness to cooperate with Afghanistan in the fields of agriculture, livestock and irrigation. He also assured the Afghan delegation that Iran would make the necessary preparations for the upcoming meeting of the joint economic commission and continue efforts to strengthen cooperation in these areas.
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Bayat Power’s 40-megawatt gas-fired turbine resumes operations in Jawzjan
Bayat Power’s 40-megawatt gas-fired electricity turbine has resumed operations in Jawzjan province following an inauguration ceremony attended by Mullah Abdul Ghani Baradar Akhund, Deputy Prime Minister for Economic Affairs, on Saturday.
The resumption marks an important step in Afghanistan’s efforts to strengthen domestic electricity production, reduce reliance on imported power and improve energy security.
During the ceremony, Mullah Baradar praised Bayat Power’s investment in gas-fired electricity generation and encouraged other investors to support the country’s energy sector and wider economy.
He said the Islamic Emirate of Afghanistan had taken significant steps towards economic growth and industrialization, creating favorable opportunities for investment. He also urged investors and industrialists to contribute to reconstruction, economic development and job creation.
Bayat Power’s return to operation comes amid a series of long-term agreements aimed at securing the future of domestic electricity generation. In May, the company extended its power production agreement with the Ministry of Energy and Water for another 10 years, guaranteeing the continued generation of 40 megawatts from domestic natural gas resources in Jawzjan.
The agreement was signed by Bayat Power CEO Ali Kasemi and Minister of Energy and Water Mawlavi Mohammad Younus Akhundzada. It followed a separate 10-year extension of the company’s natural gas supply agreement with Afghan Gas in April and an earlier power production and distribution agreement with Da Afghanistan Breshna Sherkat (DABS).
Bayat Power operates Bayat Power-1, Afghanistan’s first modern gas-to-electricity plant, which uses Siemens Energy’s SGT-A45 mobile gas turbine technology. The facility has the capacity to generate more than 300 million kilowatt-hours of electricity annually, supplying hundreds of thousands of consumers.
The company is Afghanistan’s largest private electricity producer, and its operations form part of broader efforts to expand domestic energy infrastructure and reduce dependence on electricity imports.
The resumption of the turbine is expected to reinforce the country’s local power supply while highlighting the role of private investment in Afghanistan’s energy development.
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Afghanistan’s finance minister travels to Iran for official visit
Afghanistan’s Minister of Finance, Mohammad Nasir Akhund, has travelled to Iran at the head of a delegation following an official invitation from Iran’s Minister of Agriculture, the Ministry of Finance said.
During the visit, Akhund is expected to meet with various Iranian officials to discuss bilateral economic, trade, customs and other related issues.
The visit will also include discussions on key topics for an upcoming meeting of the joint economic commission between Afghanistan and Iran.
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