Business
West says Afghanistan to get new bank notes, maps out Afghan Fund
Thomas West, US Special Representative for Afghanistan, said Friday that new printed bank notes would soon enter the market in the country, replacing AFN notes that are disintegrating.
Addressing a virtual townhall organized by a US-based Afghan diaspora group, Afghans for a Better Tomorrow, West said: “We all know the banking sector in Afghanistan is cut off from the international financial system, by and large, with the exception of one private bank.
“But there are some transactions that the ministry of finance technocrats and the central bank technocrats want to responsibly move forward with and are unable to do so unless the United States and a number of other countries in a corresponding banking chain really lean in and help to conclude.
“So I am very pleased to say that in the past 24 hours we have finally seen the conclusion of two currency transactions.
“This will mean that new printed Afghani will replace bank notes that … are virtually disintegrating in the system,” he said.
He said he did not know when exactly the new bank notes would “show up in Afghanistan” but added the US would continue to support “priority transactions”.
Discussing the new Afghan Fund, which relates to the transfer of at least $3.5 billion of Afghanistan’s frozen foreign reserves, West said the first board of trustees meeting is likely to take place next month in Switzerland.
He said the basic governance structure is now in place but that this “will evolve”. He noted that four trustees would be the ones making big decisions on the disbursement of funds.
Both the US and the Swiss government will have a representative and the other two trustees are former finance minister Dr Anwar ul-Haq Ahadi and US college professor Dr Shah Mirabi - both of whom live in the United States.
West said Mirabi has served in an advisory capacity to Da Afghanistan Bank (DAB) over the past 20 years, while Ahadi had also held the position of central bank governor and was a former commerce minister.
“These are two people we feel are exceedingly well qualified to help make responsible decisions about very limited disbursements of this money to enhance macroeconomic stability in Afghanistan,” West said.
However, there will be an additional advisory body, also made up of Afghans, who will be able to initiate their own ideas about how this money should be protected, preserved, and spent “in limited quantities”, he said.
West went on to say the majority of the $3.5 billion will remain “untouched”.
“It will be preserved for a future recapitalization of the Central Bank and of the financial system in Afghanistan.”
Business
Pakistan’s central bank reports increase in exports to Afghanistan
Pakistan's exports to Afghanistan increased to more than $291 million in the four months between July and October this year, the State Bank of Pakistan reported.
Pakistan's exports to Afghanistan were worth about $182 million in the same period last year, according to SBP.
Pakistan's exports to seven countries in the region, including Afghanistan, have increased by about 4 percent, it said. Other countries are: China, Bangladesh, Sri Lanka, India, Nepal and Maldives.
This comes as recently, Senior Vice President of Pakistan-Afghanistan Joint Chamber of Commerce and Industry, Zia-ul-Haq Sarhadi, expressed his deep concern over drastic reduction in the bilateral trade with Afghanistan and Central Asian countries.
He said in the recent past the volume of bilateral trade between Pakistan and Afghanistan was around 2.5 billion dollars which has shrunk to mere 700 million dollars.
Business
Joint chamber concerned over reduction in Afghanistan-Pakistan trade
Senior Vice President of Pakistan-Afghanistan Joint Chamber of Commerce and Industry, Zia-ul-Haq Sarhadi, on Wednesday expressed his deep concern over drastic reduction in the bilateral trade with Afghanistan and Central Asian countries.
In a press statement, Sarhadi who is also Executive Member Sarhad Chamber of Commerce and Industry blames enforcement of two percent Infrastructure Development Cess by Khyber Government on export cargo as one of the reason for recent dip in trade between Pakistan, Afghanistan and Central Asian Republics, Pakistani media reported.
He said in the recent past the volume of bilateral trade between Pakistan and Afghanistan was around 2.5 billion dollars which has shrunk to mere 700 million dollars.
Citing other reasons behind this plunge in trade volume, Zia said it includes frequent closure of Pak-Afghan border at Torkhem border, Temporary Admission Document, implementation of ban on Pak-Afghan trade including 100 percent bank guarantee, inclusion of 14 items into negative list, enforcement of 10 percent processing fees, restrictions at Karachi port causing holding of more than 300 containers of transit trade.
Business
Work on TAPI project finally kicks off in Afghanistan
Mujahid added that a large number of people are working in different sections of this project and its first phase will be completed in the next two years.
The Islamic Emirate of Afghanistan’s (IEA) spokesman says practical work on the Afghanistan section of the Turkmenistan-Afghanistan-Pakistan-India (TAPI) project has started.
Zabihullah Mujahid told Ariana News that technical equipment needed to implement the project was transferred to the border area between Afghanistan and Turkmenistan and that practical work has started.
Mujahid added that a large number of people are working in different sections of this project and its first phase will be completed in the next two years.
According to Mujahid, practical work on the CASA-1000 project and other projects will also start soon.
The spokesman of the Islamic Emirate said that Afghanistan will slowly strengthen and good job opportunities will be provided for the country's citizens.
Economic experts also believe that this project will play a vital role in the growth of the region's economy.
According to TAPI project officials, once completed, 12,000 people in Afghanistan will have job opportunities, and Afghanistan's annual income from this project will be close to one billion dollars.
The TAPI pipeline is 1,821 kilometers long and has an annual transport capacity of 33 billion cubic meters of natural gas, making it one of the largest regional infrastructure projects.
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