Go to Home Page

Ministry of Finance

Back to  Press Review Page
 

Economic Press Review
May 13 - 19,2005


 

Headlines 

In Kabul, Waiting for Americans to Light the Way  

Kabul Citizens complain of bribery for getting power  

Japan to provide aid for new int'l terminal at Kabul airport 

Afghanistan tries to reassure Japan over security 

Exports to Afghanistan close to $1b 

Afghanistan to regulate NGOs to end "Klondike" of corruption 

Human Rights and Democracy Fund Projects for Fiscal Year 2004-2005 

Afghanistan Seeks Agreement with UAE on Investment Protection 

UK to hold June donor conference for Afghanistan 

Kabul municipality cleans up illegal stalls and ?container? shops 

Afghan 'pipe dream' draws closer to reality 

ID cards to be computerized 

Gold prices up in Kabul  

Press Clippings

In Kabul, Waiting for Americans to Light the Way

The Washington Post

05/18/2005 

Regarding the May 1 front-page article "Power Grid in Iraq Far From Fixed" :I was stunned to think that people might be shocked by a lack of electricity in Iraq, while in Afghanistan electricity is still a privilege. 

Afghanistan remains in a deep energy crisis. According to the Ministry of Energy and Water, not even 6 percent of Afghans have access to electricity. And even this 6 percent has only intermittent access. 

The capital, which needs at least 500 megawatts daily, runs on 188 megawatts -- on a good day. Like Baghdad, Kabul relies on generators. The sidewalks of more prosperous neighborhoods are lined with generators. Additionally, every large organization in Kabul has a noisy generator. A mechanical hum can be heard throughout the capital. 

As for the "once-widespread belief in Americans' technological superiority and power," Afghans have discovered that they will not be benefiting from that. I wish the Iraqis luck, and I hope the American "experts" will not leave them in the dark as they have Afghans.

Back to top 

 

Kabul Citizens complain of bribery for getting power

By: Zainab Mohmmmadi and Mustafa basharat 

KABUL, May 18

(Pajhwok Afghan News) 

Some Kabul residents claim, the Kabul electricity department will not distribute electricity to their areas unless they pay bribes, but the electricity department denies these claims. However applicant say if they don?t pay bribes the power supply would be delayed for months. 

An elderly man queuing at the Kabul electricity department told Pajhwok Afghan News on condition of anonymity: "It?s impossible to get electricity for your house if you don?t know somebody or offer a bribe," adding he has so far spent about 4,000 Afs ($80) but still had no electricity at his house.  

But another Kabul resident Hameed Sediqi who was one of the thirty applicants on the waiting list said: "I paid a bribe and my electricity problem was solved, to some extent." He added that after one and half months of endless queuing and paying a total of 8000 Afs ($160), the electricity arrived but the family couldn't use it because the power meters were not installed.  

But officials while admitting cases of bribery promised to dismiss any staff involved in taking bribes and asked people to cooperate with the department in catching the culprits. Sayed Abdul Hanan Habibzada, the director of the electricity regulatory commission for west Kabul speaking to Pajhwok from his office surrounded by angry applicants: "The people who take bribes and give bribes are both guilty, and the civilians shouldn?t complain about the officers in the electricity office."  

He added three employees had been dismissed for taking bribe a couple of days ago. But the bribery and corruption has reached several levels, some applicants go as far as paying agents who are registered with the government, to get their power. 

But Habibzada said it wasn?t the employees of the electricity department who take bribes, but the agents who appoint themselves to get the power for the citizens. But an agent who didn't want to be named told Pajhwok Afghan News: "All the money we receive from the clients goes to pay the government employees to do the relevant work."  

Nearly 200 applications are received by the electricity department daily, but the processing takes some time, according to the electricity department. According to director of Kabul electricity department, more than 50% of Kabul citizens have recently benefited from having electricity at their homes.

Back to top

  

Japan to provide aid for new int'l terminal at Kabul airport

Wednesday May 18, 9:14 PM

(Kyodo) 

Japan will provide 3 billion yen in grant aid for the construction of an international terminal at Kabul International Airport under an agreement reached by the two countries Wednesday, the two nations' foreign ministers said.  

The accord was signed by Japanese Foreign Minister Nobutaka Machimura and Afghan Foreign Minister Abdullah Abdullah, who is in Japan for a three-day visit from Monday. "The Afghan people and government are very grateful" for Japan's past and ongoing assistance, such as the airport terminal construction, as part of efforts to rebuild postwar Afghanistan, Abdullah told reporters after their meeting in Tokyo. The terminal is scheduled to be completed in 2007.  

Currently, both international and domestic services use the same terminal at the airport, a Japanese Foreign Ministry official said. The new terminal will be created for international flights and the existing terminal will be used for domestic services.  

The two foreign ministers also signed an agreement on technical cooperation that aims to streamline the process of exchanges between the two nations, in which Japan will send experts and research teams and Afghanistan will send trainees. Machimura vowed that Japan will continue to provide support for Afghanistan and further expand its support in the fields of education, road building and agriculture.  

Abdullah, meanwhile, reaffirmed Afghanistan's support for Japan aspirations to become a permanent member of the U.N. Security Council, saying "Afghanistan looks favorably on your position."

Back to top  

 

Afghanistan tries to reassure Japan over security

By Isabel Reynolds  

TOKYO, May 18

(Reuters)

 Afghanistan sought to reassure Japan, one of its biggest aid donors, on Wednesday that its security situation is stable following violent anti-U.S. protests sparked by a report, later retracted, that military interrogators desecrated the Koran. 

Afghan Foreign Minister Abdullah Abdullah told reporters he had made the comments during a meeting with Japanese Prime Minister Junichiro Koizumi. "I discussed today's situation that it's very much under control but also explained how it developed," Abdullah said.  

Sixteen people died and more than 100 were injured in protests last week after Newsweek magazine reported that military interrogators at Guantanamo Bay "had placed copies of the Koran on toilets, and in at least one case flushed a holy book down the toilet". 

Newsweek retracted the report on Monday. "As the news spread at the beginning, there were two issues in it," Abdullah said. "One was the feelings of the ordinary people. The other was the intentions of some extremist elements who wanted to ignite the situation and lead it to violence." 

Japan is one of Afghanistan's major sources of aid, having provided 20 billion yen ($186.2 million) in grants and technical assistance over the four years to 2003. Abdullah denied that there was anti-U.S. feeling among Afghans in general. "The people of Afghanistan understand the need for cooperation from the international community. The United States is playing a major role in it and they appreciate it," he said. 

EXTENSION OF SUPPORT  

Abdullah also expressed appreciation for Japanese financial aid and Tokyo's plan to extend a law enabling it to provide rearguard support for U.S.-led operations in Afghanistan. "Afghanistan is also grateful for the role that Japan is playing with extension of the mission for the Pacific fleet."  

The present law is due to expire in November, and the Japanese daily Nihon Keizai Shimbun said the government was planning to submit a bill to the autumn session of parliament extending the mission by two years.  

The counter-terrorism law, first passed in November 2001 over widespread opposition, allowed Japan to deploy its navy to the Indian Ocean in the first post-World War Two dispatch to a war situation. It set the stage for a separate law allowing it to send troops to Iraq on a reconstruction mission. Abdullah, who arrived in Tokyo on Tuesday, is to meet other Japanese officials including Foreign Minister Nobutaka Machimura before departing on Thursday.

Back to top 

 

Exports to Afghanistan close to $1b

Daily Times (Pakistan)

17 May 2005

By Sajid Chaudhry 

ISLAMABAD: Pakistan?s exports to Afghanistan have almost reached the mark of $1 billion, recording a growth by 84 percent in the last 10 months of the current fiscal year while the balance of trade remained grossly in favor of Pakistan. 

Pakistan?s exports through land route to Afghanistan from July to April of the current fiscal year reached $966.67 million and the target of $ 1 billion for the whole year is likely to be surpassed, says the latest data made available to Daily Times. 

The exports from Pakistan during the July-April period were to the tune of Rs 58.104 billion compared to the exports of Rs 31.42 billion during the corresponding period of the last fiscal year, showing an increase by Rs 26.684 billion. 

The exports from Pakistan to Afghanistan of Rs 58.104 billion have showed an increase by Rs 20.39 billion as its last year?s exports were of Rs 37.714 billion. 

According to official data, Pakistan?s exports to Afghanistan during the July-April period of the current fiscal year included wheat and flour of Rs 6.456 billion, rice worth Rs 2.084 billion, ghee of Rs 4.829 billion, sugar of Rs 2.377 billion, cement worth Rs 2.598 billion, paints and varnishes of Rs 2.252 billion, mild steel products of Rs 3.435 billion, sanitary wares worth Rs 80.273 million, constriction materials worth Rs 1.075 million, electrical goods of Rs 376 million, electronic goods of Rs142.074 million, medicines of 448.351 million, other grains and pulses of Rs 226.131 million, fruits and vegetables of Rs 1.217 billion, milk and cereals of Rs 739.343 million and miscellaneous goods worth Rs 28.608 billion during the July-April period of the current fiscal year. 

The trade between two neighboring countries is mainly routed through the Torkham and Chaman border by trucks. A total of 150,303 trucks transported goods valuing Rs 58.104 billion from Pakistan to Afghanistan during the July-April period of the current fiscal year. About 92,335 trucks carrying export cargo crossed into Afghanistan through Torkham and 57,968 trucks through Chaman. Pakistan has imported goods from Afghanistan amounting to Rs 3.014 billion against the imports of 2.619 billion during the last fiscal year. 

The imports from Afghanistan to Pakistan also crossed the mark of Rs 96 million during the July-April period of the current fiscal year compared to Rs 2.182 billion imports to Pakistan. Pakistan imported vegetables, fresh fruits, dry fruits, seeds, country drugs, spices, timber, scrap and miscellaneous goods.

Back to top 

Afghanistan to regulate NGOs to end "Klondike" of corruption

Source: Deutsche Presse Agentur (DPA)

May 17, 2005

By: Can Merey  

Kabul (dpa) - For years the international community has been pumping billions of dollars worth of aid into Afghanistan, free of government regulation, leading to widespread accusations of corruption and dirty practices.  

But a new law by the Afghan government is aimed at regulating the work of non-governmental organizations (NGOs) represented in the country. It is expected that most of the 3,000 NGOs currently present in Afghanistan will vanish once the law is implemented.  

A Western diplomat in Kabul said some NGOs were likening Afghanistan to a "Klondike'', like the gold rush that swept Alaska more than a century ago. While by no means all NGOs were adhering to shady practices, honest organizations admit that there are indeed black sheep amongst their ranks.

 

"Some groups masquerade as NGOs just to fill their own pockets,'' said Anja de Beer from the NGO umbrella organization, ACBAR, in Kabul. "There is corruption within the NGO community,'' she said. Contracts in the construction sector are particularly lucrative. After 23 years of guerrilla war and civil war, Afghanistan has recently been experiencing a construction boom.  

Because there are few controls, illegal and semi-legal activities are very attractive to some parties. Rumors abound that some NGO staff are paying substantial "tea money'', or bribes, in order to acquire construction contracts, while other staff are demanding money in order to pass contracts on. "There are some construction companies that have registered themselves as NGOs,'' de Beer said. "Unfortunately, even some international NGOs have entangled themselves in corruption. I have witnessed that first-hand,'' complained Afghanistan's minister of economics, Amin Farhan.  

One problem would arise from a kind of "cascade system'' that had been implemented by some groups, he added. A particular NGO would receive a contract and pass it on to another one after it had cut its share.  

The second NGO would cut its share, then pass the contract on to the third, which would proceed similarly. Eventually, the contract would pass to the third, fourth, fifth NGO, and so on. "Once the money reaches the project, so little is left that the job quality will be sub-standard,'' Farhan explained.  

For example, he had to personally order the closure of newly-erected school buildings in Farahn province, because they were in danger of collapsing, he said. Western diplomats also complain that NGOs dominating some aid sectors were establishing cartels in order to dictate prices.  

It has been rumored that certain NGO staff have tried to invoice inflated costs or attempted to account personnel expenses several times over. Some tenders had quoted up to 80 per cent of the total project budget as "overhead''.  

Dirty business practices are harming not only those Afghans for whom the aid was originally intended, but are further damaging the already tarnished public image of NGOs. "It is clear that as a sector we have a bad image at the moment,'' admitted de Beer.  

The new law will not only exclude all NGOs from any construction projects, but, in addition, will require that all NGOs must register themselves again within the six months and prove that they are providing a community service.  

Some sources familiar with the problem estimate that after this procedure not more than 100 to 200 of the current 3,000 NGOs will still exist in Afghanistan. "It is very clear that this sector must be regulated,'' a diplomat said. If more than 300 NGOs survive, "the procedure was a failure,'' said ACBAR's de Beer, who welcomed the new regulations.

Back to top

 

Human Rights and Democracy Fund Projects for Fiscal Year 2004-2005

State Department fact sheet

Created: 16 May 2005

U.S. Department of State 

The State Department has published a report on Human Rights and Democracy Fund (HRDF) projects worldwide for fiscal year (FY) 2004-2005.  The HRDV supports innovative programming designed to uphold democratic principles, support democratic institutions, promote human rights, and build civil society in countries and regions of the world that are geo-strategically critical to the United States.  

More information, including how to apply for project funding, is available at the Human Rights and Democracy Fund web site at http://www.state.gov/g/drl/c7607.htm. 

DRL's Human Rights and Democracy Fund (HRDF), which is DRL's allocation of the Economic Support Fund (ESF), is used to fulfill the Bureau's mandate to monitor and promote human rights and democracy worldwide. HRDF supports innovative programming designed to uphold democratic principles, support democratic institutions, promote human rights, and build civil society in countries and regions of the world that are geo-strategically critical to the U.S.  

The following are programs [involving Europe and Eurasia] that have been or are currently being supported through the fund: 

Europe and Eurasia 

* Information Centers for Democracy in the Kyrgyz Republic ($613,000) - Strengthen democracy and build a more informed electorate in the Kyrgyz Republic by supporting existing Information Centers in the Kyrgyz Republic through the upcoming election cycle and increasing outreach to neighboring villages by opening five new centers. Each center is a neutral forum in which citizens can learn their rights as voters, learn international standards for electoral processes, debate the pros and cons of various candidates, learn the role of domestic election monitors in ensuring a fair process, and appreciate the importance of an informed electorate. 

* Women's Leadership in Tajikistan ($500,000) - Preparing for the February 2005 parliamentary election by strengthening political parties' capacity to represent citizens effectively and advocate for reforms. Training is focused on building national party structures and improving internal democratic structures, candidate recruitment, increasing the number of women candidates and women party members, establishing regional party offices, and canvassing constituents to prepare the party's election strategy. 

* Information Centers for Democracy in Azerbaijan ($540,000) - Establish a network of Information Centers for Democracy that will provide a nonpartisan forum through which citizens can gain access to news reports and acquire grassroots organizing and advocacy skills through training programs. Each center location will be chosen based upon an area's need for access to information. 

* Women's Political Participation Project in Kazakhstan ($400,000) - Work with a local Kazakh partner to increase the participation of provincial women in Kazakhstan in the electoral process, in public policy formation, and in promoting accountability of deputies in regional and local legislative bodies. 

* Citizen Participation in Local Government in Turkey ($300,000) - Enhance the skills of newly elected officials in Turkey and encourage citizen participation in local government. The program will focus on a few select municipalities in Turkey, chosen based upon the results of the March 2004 general elections. 

* Women's Legal Advocacy Centers in Tajikistan ($350,000) - This project will work with local partners to establish two Women's Legal Advocacy Centers in Dushanbe and Khojand, Tajikistan. Advocates, including lawyers and law students, will be identified and trained with the knowledge and tools they need to assert their legal rights. Each Center will house a legal clinic that will provide legal services to indigent women. 

* News Factory Kazakhstan ($557,000) - Create the first online Kazakhstani news and information exchange for independent mass media. This project will help raise the professionalism of the newly created private media enterprises of Kazakhstan and will foster coordination and communication among the various mass media in Kazakhstan. 

* Public Defender Centers in Uzbekistan ($80,000) - Promote rule of law in Uzbekistan by establishing Public Defender Centers (PDCs) in Karshi, Tashkent, and Andijon to protect the rights of criminal defendants in Uzbekistan. Advocates provide free criminal defense services to indigent persons from the moment of detention and are on call 24 hours a day, seven days a week. By working with lawyers capable of providing a vigorous defense, the PDCs aim to prevent coercion, torture, and self-incrimination while defendants are in pre-trial custody and to ensure a fair trial through the provision of effective trial counsel. 

* Tajikistan Independent Radio Network ($887,000) - Supporting the development of radio broadcasting in Tajikistan by helping local partners launch five radio stations, providing training, technical support, internet access, and links with local broadcasters and NGOs, and creating quality programming and a library of radio programs freely accessible to all stations and citizens. 

* Independent Printing Press in the Kyrgyz Republic ($350,000) - Promote free and independent media in the Kyrgyz Republic by conducting activities that will support the MSCF to become a self-sustaining entity through additional oversight, training, and grants and support through training and consultations of independent print media outlets in the Kyrgyz Republic. 

* Training Human Rights Reporters in Central Asia ($300,000) - This project will continue a fiscal year 2002 HRDF project to offer intensive, hands-on training to journalists and offer them web and email distribution for their news reporting. The program will include activities that promote cross-border and cross-conflict cooperation between journalists and NGOs in the Kyrgyz Republic, Kazakhstan, Tajikistan, Turkmenistan, and Uzbekistan. 

Worldwide/Regional [excerpts] 

* Embassy Small Grants Projects ($477,000) - Small grants of up to $50,000 for embassies to administer human rights and democracy projects worldwide. This year's winning posts were Ndjamena, Harare, Kinshasa, Ankara, Chisinau, Quito, La Paz, Amman, Beirut, Hanoi, Bangkok, and Colombo (for a project in the Maldives). 

* Promoting Democracy in the Muslim World ($3,479,350) - Through a grant-making program, the National Endowment for Democracy (NED) will foster democracy in the Muslim world by supporting activities that promote pluralism, human rights, rule of law, freedom of association and freedom of expression in Iran, North Africa, the Middle East, Asia and Turkey. 

* National Endowment for Democracy World Movement for Democracy ($250,000) - Support the democracy promotion activities of the National Endowment for Democracy (NED) World Movement for Democracy by organizing three regional meetings of activists, practitioners, and scholars actively engaged in establishing or strengthening World Movement networks, bringing together global networks organized around particular areas of democracy work, such as local governance and the political and civic participation of women or youth, and enabling members of the World Movement's Steering Committee to conduct outreach activities.  

* Reagan-Fascell Democracy Fellows Program ($1,000,000) - Deepen the knowledge, enrich the skills, broaden the perspectives, and revive the energy and morale of some of the world's most creative and courageous democratic practitioners and scholars by hosting approximately 16 fellows and enriching their experiences through events, research support, seminar series, brownbag presentations, informal gatherings and dinners, fellows' presentations at National Endowment for Democracy, in the media and on Capitol Hill. 

* Voluntary Principles on Security and Human Rights Secretariat and Website ($10,000) - Promote respect for human rights in the context of extractive industry security in challenging operating environments by creating and managing a website and a secretariat for the Voluntary Principles process that will facilitate communication and event coordination between participants, provide technical support for VP initiatives, performing public outreach, and engage in public advocacy and information exchange on the web. 

* "Countries at the Crossroads" Analysis of Countries' Commitment to Democracy and Human Rights ($374,000) - Creation of the annual survey that evaluates a country's commitment to and record on human rights and democracy by working with outside and in-house experts and analysts.

Back to top

 

Afghanistan Seeks Agreement with UAE on Investment Protection

Gulf News (UAE)

16 May 2005 

Dubai: Afghanistan has sought an agreement on investment protection with the UAE in an effort to boost investment in both countries. Noorullah Delawari, governor and president of Da Afghanistan Bank (Central Bank), told Gulf News that his country has signed this type of agreement with other countries including the United States, Germany and Iran and it had helped to improve the volume of investment. 

"If such an agreement is signed with the UAE, more banks from this country will come forward to lend to investors who are keen to invest in Afghanistan," Noorullah Delawari said. 

He said this on the sidelines of an announcement of an agreement between Afghanistan International Bank (AIB) and Thomas Cook al-Rostamani Exchange Company to set up the first legal money transfer system to Afghanistan through a banking channel. 

"Conflict-torn Afghanis-tan has not had a legal remittance system using banking channels for the last 25 years and the joint move between AIB and Thomas Cook Al Rostamani is bound to be greeted with relief by the more than 200,000 Afghans residing in the UAE," said Niyaz Ali, general manager of Thomas Cook al-Rostamani. 

Since AIB has only one branch in Afghanistan, in Kabul, Da Afghanistan Bank (Central Bank) has offered to use its branches situated in 27 locations to collect the remittances from the UAE. 

The governor of DAB said: "The country has a free exchange rate mechanism and at 10 in the morning, every day, the rate will be announced by the central bank." 

On the current system of inward remittances, Delawari said the country does not have a clear indication of how much money finds its way into Afghanistan since the remittances mostly take the hawala route.  

"And this, in fact, is an impediment to preparing an accurate balance of payments picture," the Central Bank governor said. 

Referring to the period until 2002 when the country did not have a central bank-monitored currency system, Delawari said DAB was able to take out of circulation four illegal currencies from the monetary system in 2002 and replace them with a legal currency issued by the central bank. "We collected 20,000 tones of old banknotes," he said.

Back to top

 

UK to hold June donor conference for Afghanistan

Reuters

05/16/2005  

LONDON - Britain will hold a donor conference next month to raise funds to help rebuild Afghanistan, Foreign Secretary Jack Straw said on Monday. It will be in London on June 21, two days before Straw hosts foreign ministers from the G8 group of industrialized nations.  

"We seek continued long-term international support and (the donor conference) will be another opportunity," said Afghan Foreign Minister Abdullah Abdullah at a news conference with Straw.  

The conference, which takes place three years after U.S-led forces overthrew the Taliban, aims to raise aid for post-war reconstruction before existing commitments run out. Billions of dollars of aid have been earmarked for Afghanistan in the last three years. A conference in Berlin last year raised pledges of $8.3 billion.  

Britain says it is the third-biggest international donor to Afghanistan and has contributed over $100 million for the narcotics war alone. Abdullah's visit to London comes at a sensitive time.  

Tension is running high following anti-American protests in which 16 people were killed in Afghanistan after U.S. magazine Newsweek reported that U.S. interrogators had desecrated the Koran.  

Newsweek has since said the report may not be true but it sparked protests across the Muslim world. Afghanistan's government, formed just four months ago, has a long way to go to establish a safe and stable country.  

Straw said "visible, palpable progress" was being made but Abdullah stressed the need for international support. He insisted the latest protests did not represent a widespread rejection of western engagement.  

"There are extremist elements, those who don't want the process of democratization, stabilization, rebuilding of Afghanistan," he said. "But without the continuation of support from the international community ... the process is not consolidated enough for Afghanistan to stand on its own feet."

Back to top

 

Kabul municipality cleans up illegal stalls and ?container? shops

By:  Zarghona Salih

KABUL, May 15,

(Pajhwok Afghan News) 

The Kabul municipality has destroyed 650 illegal stalls and moved 300 ?container? shops to the outskirts of the capital from the 16th district, during the last month. Shah Mahmood Amiri, the director of municipality for the 16th district said that the clean up operation which started on the 20th of April was completed on May 14. 

Amiri said the clean-up operation was introduced following a decree issued by President Hamid Kaarzai to clear up all illegal shops. Amiri said:" These shops had no legal documents and were trading illegally and overcrowding the streets." 

Some of the container shops have been moved to the outskirts of the capital Kabul, and the shopkeepers complain that for the past month their business has plummeted, instead of growing. 

Hamid Ullah a shopkeeper of Pul-e-Mahmood in the suburbs of Kabul said," the government and municipality are not solving the unemployment problems of the people; instead of creating jobs for people they are making people unemployment."

Back to top 

 

Afghan 'pipe dream' draws closer to reality

May 13, 2005 edition

By Scott Baldauf The Christian Science Monitor

http://www.csmonitor.com/2005/0513/p05s01-wosc.html   

KABUL, AFGHANISTAN - Back in the days of the Taliban, Mir Sediq was an engineer for Unocal, working on a pipe dream: bringing natural gas from Turkmenistan down through Afghanistan to Pakistani ports on the Arabian Sea. Today, Mr. Sediq is minister for Afghanistan's energy, mining, and industrial sector, and he's confident that the pipeline is coming close to reality. 

Driven by a Pakistani economy growing at nearly 7 percent a year and higher energy prices, the pipeline, on paper, is the closest thing to a win-win scenario as one can find in Central Asia. For Pakistan, expected to run out of its own reserves in five years, the pipeline will help sustain growth. For Turkmenistan, it helps to provide a market for its substantial gas reserves. And for Afghanistan, it could mean from $200 million to $350 million per year in transit fees.  

In the rough parlance of oil industry executives, that beats a kick in the head. "This pipeline is an opportunity for Afghanistan, and we would like to keep Afghanistan a place that is open and attractive for foreign investment," says Sediq. "The foreign investment rate of return is 17.5 percent, based on the assumptions that the gas reserves in Turkmenistan are enough and the consumption rate in Pakistan remains high. Only security of the pipeline is left, and the government of Afghanistan is capable of providing security."  

It wasn't so long ago that the pipeline was thought to be dead. Taliban attacks in the south appeared to be on the increase, and other sources of energy, such as Iran or Qatar, were more attractive. But growing Pakistani demand, increased Afghan stability, and higher energy prices for Turkmenistan have made the pipeline increasingly feasible. This week, President Hamid Karzai told donor countries the project was a top priority - on a par with the war on terror and opium eradication.  

As yet, there are no foreign investors vying for the project, but talks between Turkmenistan, Afghanistan, and Pakistan are proceeding. In mid-April, the three countries and the Asia Development Bank held their eighth round of meetings to hammer out details of what Turkmenistan has, how much gas Pakistan needs, and whether Afghanistan is safe enough. The next round comes in July, but Sediq is expected to travel to the Turkmen capital of Ashkabad Friday to see if the government's survey of reserves will be finished in time.  

"The biggest question is certification of gas reserves in Turkmenistan," says Mary Louise Vittelli, an adviser to the Afghan Ministry of Mines and Industry. "We need to know if there is enough gas for the next 30 years. There are lots of pipelines in countries where there is war, so security is a question, but not a deal breaker. You can have all the security you want, but if the price is five times higher than getting gas from Qatar, then the deal is broken."  

When first proposed back in the early 1990s, the Turkmenistan-Afghan-Pakistan pipeline (nicknamed TAP), was planned to be roughly 1,100 miles long. The Afghan portion would have been 466 miles long, much of it following the Herat-Kandahar road. Now, Afghan officials and foreign engineers are exploring a possible route across the northern provinces and through Kabul.  

If started Today, the pipeline could be completed in seven years. That comes two years too late for Pakistan, which is running out of reserves.  

While Pakistan has doubled its energy output since 1999 - to 4 billion cubic feet per day - its roaring economy is expected to deplete gas reserves by 2010. By 2015, it will need to buy 2.5 billion cubic feet per day from abroad. "We cannot sustain our economic growth if we don't get additional energy," says Ahmad Waqar, Pakistan's secretary for petroleum and natural resources. "We need gas."  

In all likelihood, Pakistan will need more than one pipeline project. Pakistan is negotiating with Qatar and Iran over separate projects. The Qatari pipeline is the most politically stable, but it has technical problems. The Iranian pipeline - which would distribute gas to both India and Pakistan - is technically the simplest. But it faces substantial US opposition, as US law precludes giving a government contract to a US company doing business with Indian or Pakistani firms working on the Iranian pipeline. Both India and Pakistan are so desperate to find gas that they are working together as joint customers on the Iranian pipeline.  

The TAP pipeline is expected to cost $3.8 billion, and create hundreds if not thousands of jobs for Afghans. Afghan officials say that it might be one of the first projects to generate revenue for the state.  

"There is the opportunity to create 3,000 Afghan jobs for 30 years," says Sediq. Hiring local labor will help increase security, he adds. "When they are the part of the project, they will not let anyone attack it."

Back to top 

ID cards to be computerized

By Najib Khilwatgar

KABUL, May 12

(Pajhwok Afghan News): 

The Interior Ministry said on Thursday if provided with requisite funds it could issue Afghan nationals computerized identity cards. 

Abdul Rahman Maqool, an official of ministry, told Pajhwok Afghan News an amount of $50 million was needed for the project. "Computerized ID cards will have the holder's name, father's name, fingerprint, photo, blood group and other details. "He recalled the ministry had floated the computerization suggestion last year to President Hamid Karzai, who had promised the Finance Ministry would provide the budget this year. 

Work on the project, initiated in 2002, had to be stopped due to fund shortage, he said, adding the computerization process would cover passport and license records as well. 

Maqbool pointed out each national had to change his/her ID card every 10 years but wars and instability hampered the replacement. "In wartime, many people faked ID cards and other documents, which are being used even today."

Back to top

 

Gold prices up in Kabul

By: Zainab Mohammadi 

KABUL, May 12

(Pajhwok Afghan News) 

Gold prices went up in Kabul this week after a hike in the international bullion market while rates of food items registered a decline, traders said on Thursday. In terms of one gram, Iranian and Saudi gold sold for 530 and 660 Afghanis respectively in the local market during the week ending on May 5. On May 12, prices of both varieties witnessed an increase of 20 Afghanis each. 

Abdul Samir, a goldsmith in the main mart here, told Pajhwok Afghan News: "We fix gold prices on a daily basis in line with international market swings. And this pricing strategy is followed in most countries." 

But foodstuff prices trended down this week, with a 50-kilo sugar bag costing 1,100 Afghanis - falling by 50 Afs. By the same token, the rates of cooking oil, wheat flour and tea also came down - to consumer relief. 

Meanwhile, the currency market remained stable during the current week. The afghani saw no appreciable value change in relation to most foreign currencies. Last week, one greenback was valued at 49.90 Afs, but the local currency was up by a whisker on Thursday. 

Fuel and gas costs also remained unchanged, according to market sources, who did not expect any big price differential till Saturday.

 

 

Back to top

 

 

Minister and Deputies

About MoF

Information Technology