Economic Press Review
July 8-14

Headlines

German supplies to ISAF allowed via Pakistan 

Illegal marble excavations in Faryab prompt calls for action 

Financial fraud unearthed at Afghan central bank 

Exports to Afghanistan stood at Rs 71.2b in 2004-05

Renovated bank, first in Kabul, opens

Oil supply to Afghanistan disrupted

ADB approves $55m for Badghis road project 

Afghanistan gets 55 million dollar grant from ADB for roads

Iran Modernizes Afghanistan's Bamiyan Airport

Pak-Iran joint venture for Afghanistan

India, Pakistan talks on Iran gas pipeline

Gold mine discovered in Herat, claims minister

Pakistan assures uninterrupted cement exports to Afghanistan

Press Clippings

German supplies to ISAF allowed via Pakistan 

By: akhtun Sahar 

ISLAMABAD, July 13

(Pajhwok Afghan News)

The government of Pakistan has allowed Germany to dispatch military supplies via the Karachi Port to US-led coalition forces and ISAF stationed in Afghanistan.An agreement to the effect was inked the in Berlin by Pakistan's Foreign Minister Khurshid Mahmud Kasuri and his German counterpart Joschka Fischer, the Foreign Ministry here said on Wednesday.

In an exclusive chat with Pajhwok Afghan News, a Foreign Office official said under the accord Germany could route goods and equipment through Pakistan to foreign troops in Afghanistan."We view the decision as a positive step towards better ties with Germany and revival of peace in Afghanistan," observed Naeem Khan, who hoped the pact would also help foster overall routine life in the neighboring country.

The official explained although German military supplies to Afghanistan were shipped through Pakistan over the last 18 months, the agreement would give these consignments a legal cover.

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Illegal marble excavations in Faryab prompt calls for action 

By: Mohammad Jan Frogh 

MAIMANA, July 13

(Pajhwok Afghan News)

Residents of the Almar district in the northern Faryab province have asked the government to take effective measures to halt illegal excavations of marble by in the area.

They complained errant individuals were flouting relevant rules by using dynamites to excavate marbles, which often resulted in unwarranted wastage of the precious stones.

Haji Usman (60), a stone-cutter, told Pajhwok Afghan News on Wednesday special techniques and equipment were required for marbles excavations, but the use of explosives were causing a big loss to the reserves. He stressed action should be taken against the illegal miners.

Hujjatullah, another dweller of the district, described marble reserves as a huge asset, whose exports could fetch the government a handsome amount of foreign exchange.

Mohammad Asif, a mining engineer, said the red and white color marbles were in great demand in Central Asia. He too underlined the imperative of official vigilance on the unlawful activities of greedy elements damaging mineral resources.

Approached for comments on the issue, Faryab's Deputy Governor Syed Ahmad Saeed said a special team had been organized to discourage illegal excavations in the district.

Meanwhile, an official of the provincial justice department said marble excavation was an unlawful act, which must be stopped. He called for the government to initiate steps for bringing the culprits to book.

The war-ravaged country has vast reserves of gas, copper, metal including gold and precious stones. But decades of conflict hampered exploration of these reserves on the one hand and influential warlords used the national wealth as their personal assets on the other.

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Financial fraud unearthed at Afghan central bank 

By: Ahmad Naeem Qadri 

MAZAR-I-SHARIF, July 13

(Pajhwok Afghan News)

A senior official of a government-owned bank in this provincial capital has disappeared after allegedly withdrawing $80,000 from the bank, officials said.

"Mohammad Siddiq, deputy director of Da Afghanistan Bank, has gone underground after fraudulently withdrawing the huge sum," police chief of the Hairatan area Mohammad Zaman Dilawar told Pajhwok Afghan News.

Deputy administrator of the area Qazi Najeebullah, confirming the fraud, said some officials of the bank have been taken into custody for investigations. Probe is on to apprehend the real culprits.

"The scandal emerged a week ago but we remained tight-lipped to secretly pursue and nab the wrongdoers," Najibullah said, adding: "A probe team from Kabul also visited Hairatan some days back to get information of the financial scam and oversee the ongoing investigation process. "Bordering Uzbekistan, Hairatan is an important port city, where transactions worth millions of dollars take place daily in form of exports and imports.

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Exports to Afghanistan stood at Rs 71.2b in 2004-05

Daily Times - Pakistan

By: Sajid Chaudhry

ISLAMABAD: The $1 billion export target fixed for Afghanistan was surpassed in the fiscal 2004-05 by $ 166 million, an official told Daily Times on Wednesday.

The exports from Pakistan to Afghanistan stood at $ 1.166 billion in last fiscal year against the exports of $ 616.66 million in the fiscal 2003-04, the official said.

The exports from Pakistan during the last financial year stood at Rs 71.200 billion against the exports of Rs 37.717 billion during July-June period of 2003-04, showing an increase of Rs 39.483 billion.

According to official data, Pakistan's exports during 2004-05 included wheat and flour of Rs 8.260 billion against their exports of Rs 3.466 billion in the year before the last, showing an increase of Rs 4.794 billion.

The exports of rice during last fiscal stood at Rs 2.421billion against the exports of Rs 1.776 billion in 2003-04, showing an increase of Rs 645 million. The exports of ghee to Afghanistan during last fiscal stood at Rs 5.519 billion against its exports of Rs 2.622 billion in 2003-04, indicating an increase of Rs 2.897 billion.

The exports of sugar from Pakistan to Afghanistan during the last fiscal year stood at Rs 2.687 billion against the exports of Rs 1.423 billion in 2003-04, showing an increase of 1.264 billion. The exports of cement from Pakistan to Afghanistan during last fiscal remained at Rs 3.343 billion against the exports of Rs 1.260 billion in 2003-04, indicating an increase of Rs 1.920 billion.

The exports of paints and varnishes during last fiscal stood at Rs 2.989 billion against the exports of Rs 91.882 million in 2003-04, projecting an increase of Rs 2.070 billion. Mild steel products exports during last fiscal to Afghanistan remained at Rs 4.179 billion against the exports of Rs 1.478 billion in 2003-04, showing an increase of Rs 2.701 billion.

Sanitary wares exports during last fiscal to Afghanistan stood at Rs 107.196 million against the exports of Rs 86.678 million in 2003-04, registering an increase of Rs 20.5 million. The exports of constriction materials during last fiscal to Afghanistan stood at Rs 1.248 billion against the exports of Rs 838.572 millions in 2003-04, registering an increase of Rs 409.428 millions in the last fiscal year.

The exports of electric goods to Afghanistan during last fiscal year stood at Rs 626.663 millions against the exports of Rs 289.221 millions in 2003-04, showing an increase of Rs 337.442 million in the last fiscal. The exports of electronics goods to Afghanistan during last fiscal remained at Rs 186.234 million against the exports of Rs.55.265 millions in 2003-04, indicating an increase of Rs 130.969 millions in the last fiscal year.

Exports of medicines to Afghanistan during last fiscal stood at Rs 525.572 million against the exports of Rs.328.611 million in 2003-04, indicating an increase of Rs 196.961 million.

The exports of other grains and pulses to Afghanistan during last fiscal stood at Rs 256.612 million against the exports of Rs 121.536 million in 2003-04, indicating an increase of Rs 135.076 million in the last fiscal year. The exports of fruits and vegetables to Afghanistan during last fiscal year stood at Rs 1.514 billion against the exports of Rs 2.189 billion in 2003-04, indicating a decrease of Rs 675 million in the last fiscal year.

The exports of milk and cereals to Afghanistan during last fiscal year stood at Rs 922.382 million against the exports of Rs 1.542 billion in 2003-04, indicating a decrease of Rs 619.618 million in the last fiscal year. The exports of miscellaneous goods to Afghanistan during last fiscal stood at Rs

35.896 billion against the exports of Rs 20.141 billion in 2003-04, indicating an increase of Rs 15.755 billion.

Pakistan has imported from Afghanistan goods amounting to Rs 3.488 billion during the last fiscal year 2004-05 against the imports of Rs 2.619 billion during 2003-04, indicating an increase of Rs.869 million in the last fiscal year. Pakistan imported vegetables, fresh fruits, dry fruits, seeds, country drugs, spices, timber, scrap and miscellaneous goods from Afghanistan.

The trade between two neighboring countries is mainly routed through Torkham and Chaman boarders by trucks. As many as 188,339 trucks transported goods from Pakistan to Afghanistan during the last fiscal 2004-05. As many as 117,501 trucks carrying export cargoes crossed into Afghanistan through Torkham and 70,838 trucks through Chaman.

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Renovated bank, first in Kabul, opens

July 13, 2005

Combined Forces Command - Afghanistan

Coalition Press Information Center (Public Affairs)

KABUL, Afghanistan -- Afghanistan continues to march along the path to reconstruction as a ribbon-cutting ceremony was held July 7 for a newly renovated bank branch. "This shines as yet another example of the many positive steps forward occurring in this great country," said U.S. Army Lt. Col. Christopher M.Nolta, a Coalition engineer and a liaison officer with the Afghan government.

It is the first opening of a renovated bank in Kabul province. Two more are scheduled for renovation. The bank is to be a government bank supporting the payrolls of government officials and employees such as the Afghan National Police and the Afghan National Army, Nolta said. "There have been a lot of issues in getting government workers paid due to the financial infrastructure in this country," Nolta said. "This bank's opening will make getting officials paid a lot easier, and that will increase the stability and security of this country in a big way."

More than 12,000 government workers will be able to cash their paychecks at this one branch alone, said Nolta. The building has undergone several renovations, including the installation of a bathroom, teller windows and a reinforced vault, which is believed to be the first of its kind in Afghanistan.

The project cost $55,000 from the U.S. military's Commander's Emergency Response Program, which provides funds for projects that can help Afghans quickly.

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Oil supply to Afghanistan disrupted

Dawn (Pakistan) / July 12, 2005 issue

By; Ibrahim Shinwari

LANDI KOTAL (Khyber Agency)

 Oil supply to Afghanistan was disrupted on Monday when dozens of oil tanker owners parked their vehicles at Torkham border, citing security reasons inside Afghanistan. The move was launched after a scuffle between Afghan government officials and oil tanker drivers in Latha Bund area, near Kabul. A tanker driver said their vehicles were not allowed to proceed to Kabul by the Afghan officials posted at Latha Bund on the pretext that the route was not suitable for heavy traffic. However, when drivers insisted on opening the route, the Afghan security officials abused and thrashed them, he alleged.

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ADB approves $55m for Badghis road project 

By  Zainab Muhammadi 

KABUL, July 12

(Pajhwok Afghan News)

 The Asian Development Bank (ADB) Tuesday approved $55 million assistance for the rehabilitation of a road project in the Badghis province. An ADB statement issued here said the money would be spent on reconstructing the road linking Qaisar and Balamurghab districts of the western province, 337 kilometers south of Kabul.

Paving the 90-kilometer road would resolve transportation problems of the residents, the brief statement said, concluding the project would facilitate supplies to the backward area.

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Afghanistan gets 55 million dollar grant from ADB for roads

MANILA, July 12

(AFP)

The Asian Development Bank (ADB) on Tuesday said it has approved a 55-million-dollar grant to rehabilitate the war-ravaged road network of Afghanistan.

The grant will cover the 90 kilometers (56 miles) between the towns of Qaisar and Bala Murghab which is the last unpaved section of the national primary road, Mania-based ADB said in a statement.

"The project area is one of the least developed areas that the ring road touches, and, due to its remoteness and extreme weather conditions, people living in the area are in need of continued aid and assistance in basic social services, which an improved road will help facilitate," the ADB said.

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Iran Modernizes Afghanistan's Bamiyan Airport

IRNA (Iran)

11 July 2005

Head of Afghanistan Province airport said here Monday that Iran has provided the central Afghan city of 'Bamiyan' with weather-related instruments. Ghertanali told IRNA that the equipment valued at dlrs 60,000 were installed by Iranian road and transportation ministry officials. Added that the equipment are useful in facilitating the landing of airplanes in Bamiyan. [Sentence as received] Before the Bamiyan airport could not relay weather information to pilots intending to land at the airport.

Bamiyan has the highest altitude among Afghan cities and was the site of giant Buddha statues attracting the most number of tourists in the country.50 Iranian trade and service companies are currently active in Afghanistan.

The companies are involved in production of potable water, medicine, polyethylene pipe, electrical switches, concrete, computer and liquid gas cylinder filling device as well as wood industry, construction of houses and restaurants and establishment of dental clinics.

Among 35 countries investing in Afghanistan, Iran stands fourth. The two countries have been enjoying constant trade exchanges for a long time, with the exception of a short period during the Taliban rule.

Since the present government took office in Afghanistan after two decades of detrimental conflicts, measures are being taken towards political stability and development of national economy.

Volume of Iran-Afghanistan transactions has reached USD 260 million a year. Announcing this, Minister of Economic Affairs and Finance Safdar Hosseini told reporters in March on the sidelines of ceremonies to ink the document of the first Tehran-Kabul Economic Commission meeting that the agreement will pave the way for further increase in trade transactions between the two countries.

Hosseini said Iran had, following the establishment of new government in Afghanistan, granted the country dlrs 500 million, adding that a headquarters has been set up, operating under the supervision of Iran's first vice president, to expedite the implementation of development and reconstruction projects by the Afghan government.

He said the establishment of the Dogharun-Herat road and Milak Bridge, the power, irrigation, agricultural and telecommunications projects, as well as technical and vocational training are among the projects implemented in cooperation with the Afghans.

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Pak-Iran joint venture for Afghanistan

Daily Times 12 July 05

Staff Report

ISLAMABAD: Pakistan and Iran are considering cooperation in a venture to develop the livestock sector in Afghanistan.The cooperation between the two countries will be undertaken from the platform of the Economic Cooperation Organization (ECO), a senior government official told Daily Times.

He said Pakistan and Iran had the expertise to develop the livestock sector in Afghanistan which is a neighbor of both countries.

The ECO which comprises Pakistan, Afghanistan, Iran, Azerbaijan, Kazakhstan, Kyrgyzstan, Tajikistan, Turkey and Uzbekistan has been working to promote cooperation between the member countries to solve the numerous challenges facing the region.

The official said the ECO headquarters in Iran had informed the livestock authorities in Islamabad through the foreign ministry about a joint venture between Islamabad and Tehran in developing animal herds in Afghanistan where the consumption of meat is comparatively higher. ?We think Afghanistan?s meat requirement is higher as Afghans prefer mutton and beef to vegetables,? the official said.

After viewing these estimates, the government of Pakistan is of the view that the meat shortage in Pakistan is caused by the alleged smuggling of animals into Afghanistan, the official said.

This also makes meat dearer in Pakistan which has already permitted the import of live animals from India. Meat prices have also been on the rise due to the shortage of animals, the official said.

Due to this factor, the government is of the view that both the formal and informal sector for animals be developed in Afghanistan to help Pakistan meet its meat requirements. The official said the proposal sent from the ECO secretariat was being considered by the authorities concerned. The modalities for cooperation in this regard are being finalized, the official added.

The official said Pakistan had been facing a drought situation for the last few years which had adversely affected the livestock sector in the country. This has resulted in a shortage of animals and has resulted in the prices of meat increasing to a record high, the official said. Pakistan has already finalized a new livestock policy.

?Every policy being made in Pakistan, which directly or indirectly refers to foodstuff has always been linked to food requirements in Afghanistan as Pakistan informally includes Afghanistan?s wheat requirement in its national requirement, the official said.

He said the ECO proposal was encouraging as a developed animal sector would benefit Pakistan and Iran. Pakistan and Iran will look into how to increase the numbers of goats and sheep in Afghanistan which are largely looked after in traditional herds. Since the recent rainfalls have removed the effects of drought in Afghanistan to a large extent, there is definitely a likelihood that people will again invest in livestock, the official said.

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India, Pakistan talks on Iran gas pipeline

New Delhi, July 11,

IRNA

India and Pakistan will tomorrow discuss financing of the 4.1 billion dollar Iran-Pakistan-India gas pipeline project, the transit fee that Islamabad will charge for allowing the passage of the pipeline to India and security issues.

Pakistan's Oil Secretary Ahmed Waqar will meet Petroleum Minister Mani shankar Aiyar at the beginning of the Joint working Group meeting which will look at options of financing the project in the backdrop of US sanctions against Iran. Last week, Pakistan and Iran had signed a Memorandum of Understanding for the implementation of the 2600-km project.

New Delhi will also flag-off the issue of transit fee payable to Pakistan besides the legal framework required for the project, technical parameters, security cover and steps to be taken for safe delivery of gas, a top official said.

Also to figure during the two-day discussions would be the quantity of gas to be imported by India and Pakistan, delivered price of gas, terms of supply and the commercial arrangement, he said adding the two sides may also talk of the indicative gas price through Turkmenistan- Afghanistan-Pakistan pipeline and its possible extension to India.

The technical issues to be discussed include the pipeline route, off take and landfall points at the Iran-Pakistan and Indo-Pakistan borders. Technical parameters for same operation, common standards for the design, construction and operation of the pipeline, certification of gas reserves and statutory approvals required in Pakistan for construction and operation of pipeline will also be discussed at the meeting.

The JWG would also discuss the inter-government guarantee and role of each state - Iran, Pakistan and India - their responsibility and duties.

The official said the Indian side will also re-confirm to Pakistan that beyond the Indo-Pak border, the title and risk of gas will get transferred to Indian firms and no trilateral or bilateral arrangement will be in operation at this stage. The JWG will also discuss a common term sheet for India and Pakistan for purchase of gas from National Iranian Gas Export Co (NIGEC). New Delhi wants NIGEC backed by its parent state-run National Iranian Oil Co guarantee for the project.

The JWG would also deliberate on lead promoter for the gas transport company and the extent of equity participation by Indian and Pakistani firms in this company, the debt/equity options, role of BHP Billion in the project and devising a strategy for participation by Indian and Pakistani companies in upstream projects under a buy-back contract.

The issue of taxes and duties payable during pipeline construction and its subsequent operation would also be discussed at the first JWG meet. Also on the list is risk analysis and prevention, dispute resolution and arbitration including the venue and governing law of arbitration.

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Gold mine discovered in Herat, claims minister

By: Ahmad Ehsan Sarwaryar 

HERAT CITY, July 11

(Pajhwok Afghan News)

A large gold mine, also containing precious stones, has been discovered in the western province of Herat, an Afghan minister disclosed on Monday .Eng. Mir Mohammad Sediq, minister of mines and industries, told reporters while inaugurating an industrial town in Herat that the pit was discovered in Chesth district three weeks back.

"We have sent samples from the mine to international laboratories, with the results indicating the presence of gold in the mine. Thus it is the best kind of mine," the minister remarked.

He added the laboratories had also learnt from satellite pictures that there were reserves of unique precious stone used in nuclear tests in the same district, 125 kilometers east of the provincial capital.

Sediq revealed his ministry planned to send precious stone samples to international laboratories for tests. He believed an international lab could be created in Afghanistan to study and analyze such minerals.

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Pakistan assures uninterrupted cement exports to Afghanistan

By  Pakhtun Sahar 

ISLAMABAD, July 7

(Pajhwok Afghan News)

The Pakistan government Thursday scotched speculation that it had halted cement exports to Afghanistan to bring down prices of the commodity. Senior officials, while rejecting the rumors as groundless and misleading, assured cement supplies would continue uninterrupted as long as the neighboring country required them.

Ibrar Ahmad, a senior official at the Ministry of Commerce and Industry, told Pajhwok Afghan News that Islamabad had not yet taken any decision on stopping cement exports to Afghanistan.

"Now that Afghanistan is in the thick of the reconstruction effort, we won't stop supplies; rather we want to cooperate with it in a big way in other sectors as well," he remarked.

He alleged some elements were fueling rumors in a bid to create an atmosphere of disenchantment between the two countries. For its part, he assured, Islamabad would try to further expand trade cooperation with Kabul.

Cement prices have lately registered a sharp increase in Pakistan because of stepped-up supplies - both legal as well as illegal - to Afghanistan, where the rebuilding process is continuing apace.

Some days back, local newspapers reported the government had brought to a close cement exports to Afghanistan in an attempt to arrest the soaring rates of the commodity. Domestic consumers have voiced serious concern at the incessant hike in cement price, urging the government take measures to bring it down.

An official at the Cherat Cement Factory also scoffed at media reports about a stop to Afghan exports. "There is no truth to these reports as we have not received any orders to the effect either from the government or cement manufacturers."

Rauf, in charge of the supply section, went on to point out they had dispatched the product to Afghanistan even on Wednesday. "And today's supplies too are ready for shipment," he concluded.

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