Business
World Bank report finds Afghan revenue collection strong
The World Bank on Wednesday published its latest report on Afghanistan’s economy and painted a slightly positive picture – stating that in the first nine months of the fiscal year 2022, exports were good, the exchange rate was stable and the Islamic Emirate’s revenue collection had been strong.
The World Bank stated that inflationary pressure in Afghanistan has eased since July of last year, decelerating by half to 9.1 % in November, while most basic food and non-food items are still widely available. The report stated the decline in inflation was due to lower global oil and food prices, along with a stable exchange rate.
The bank stated that Afghanistan exported $1.7 billion worth of goods during this time, an increase of approximately 90% compared to the full year 2021.
The report noted that January to June 2022 data shows the country imported $2.9 billion of goods.
In addition, the report stated that revenue collection had remained strong, reaching $1.54 billion between March and December 2022, in line with 2020 results.
A major chunk of the revenues came from taxes collected at borders and non-tax sources while a rise in coal mining royalties and fees were likely the drivers of the increase in revenue, the report found.
The report also noted that most government workers in Afghanistan have received salaries regularly and that their main problem was the lack of cash in banks when withdrawing their salaries.
Business
Ministry of commerce allocates land for oil refineries
Acting Minister of Industry and Commerce Nooruddin Azizi, said in a meeting with oil refinery officials that as soon as they are ready to invest, the ministry will establish an oil and gas industrial park.
In this meeting, refinery officials discussed problems regarding the Qashqari oil field and agreed that land should be provided. They said oil extracted from Qashqari needed to be refined through the standard process.
Azizi, while announcing the cooperation and support of the Islamic Emirate and especially the Ministry of Commerce and Industry for the private sector of the country, said: “A joint proposal should be arranged and submitted to this ministry for the land of the refineries, and also if the officials of the refineries are ready to invest in the area of Dara-e-Hairatan, an oil and gas industrial park will be created and the land will be placed under their control.”
Azizi emphasized the need to increase the capacity of existing refineries and the quality of oil, shared the decision of the High Economic Commission regarding the establishment of a large refinery.
Business
Pakistan’s Federal Secretary of Commerce invited to visit Kabul
Acting Minister of Industry and Commerce, Nooruddin Azizi, has invited Pakistan’s Federal Secretary of Commerce Mohammad Khurram Agha to visit Kabul.
In a virtual meeting, the two sides discussed the progress made in the last two and a half years in the country, the increase in trade between the two countries, solving problems and removing trade and transit barriers.
They also discussed the need for more facilities, establishing close relations between the governments and private sectors of the two countries and boosting regional cooperation, the Ministry of Industry and Commerce said in a statement Monday.
Business
Headline inflation in Afghanistan down to -10.2% in January: World Bank
In January 2024, headline inflation experienced a significant downturn, reaching -10.2 percent on a year-on-year basis, the World Bank said in a report.
This substantial drop was largely due to a sharp decline in prices across both food and non-food categories, the report said.
Moreover, core inflation, which strips out the typically volatile food and energy sectors, also fell into negative territory, posting a rate of -6.5 percent on year-on-year basis.
“This ongoing core deflation reflects a troubling inability of both private and public sectors to stimulate sufficient demand. While this period of falling prices may offer temporary financial relief to the most vulnerable households by reducing the cost of living, it can also harm the broader macroeconomy,” the World Bank said.
According to the bank, Afghanistan’s exports contracted by 5 percent on year-on-year basis to $140.5 million in January 2024, down from $148.1 million the previous January.
Food exports to India jumped by 22 percent, compared to an 18 percent decline in Pakistan. Pakistan and India continued to be the top export destinations, claiming 45 percent and 34 percent of the total exports in January 2024, respectively.
The 2023 growth trend in imports extended into January 2024, hitting $830 million, up 37 percent from $600 million in January 2023.
According to the report, in 2023, the afghani (AFN) saw a significant 27 percent appreciation against the US dollar, buoyed by the influx of around $1.8 billion in UN cash shipments and an estimated $2 billion in remittances.
Revenues have been below the Islamic Emirate of Afghanistan’s (IEA) target during the first eleven months of FY2024, with border taxes underperforming despite a surge in imports.
Over the eleven-month span of FY2024, from March 22, 2023, to February 21, 2024, Afghanistan’s revenue collection reached AFN 189 billion, narrowly missing the target by 2 percent but marking a 5.6 percent increase from the previous fiscal year, the report said.
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