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Economic Press Review
July 1-7


Headlines 

Rugs lead to better life; Afghan weavers rewarded with fair pay, education 

Chaman-Kandahar rail link: go-ahead signal from Afghanistan still awaited 

Japan to give Afghanistan 3.75 bil. Yen to help reconstruction 

First generic medicines factory being set up in Afghanistan 

Radio Voice of Paktika opens in Afghanistan  

?Pakistan should allow Afghan trucks to enter? 

Afghanistan threatens to ban entry of trucks from Pakistan 

Afghanistan's imports from China surge by 30pc 

Soybean cultivated on trial basis in Afghanistan  

India pledges $500m to Afghanistan 

Investigations into ?fake? POL exports to Kabul begin 

Kabul seeks refrigerated containers for fruit exports 

Uruzgan farmers get improved seeds and fertilizers  

India reaffirms reconstruction aid to Afghanistan 

Mood downbeat ahead of Shaukat's Kabul visit  

Afghanistan?s reconstruction going full steam ahead 

Thousands of reconstruction projects on the verge of completion

Further on New Student Radio Station Launched in Khost Province 

World Bank Provides Supplemental Grant for Afghanistan?s National Solidarity

Press Clippings

Rugs lead to better life; Afghan weavers rewarded with fair pay, education

Chicago Tribune

6 July 2005

By T. Shawn Taylor 

In remote, mountainous regions of Afghanistan, female rug weavers toil for up to a year to make one hand-woven masterpiece. Their lives are a sharp contrast to the affluent Americans who crowded a North Shore mansion recently to consider buying one of those rugs at prices ranging from $500 to $10,000. 

Connecting these polar opposites is Connie Duckworth, a Chicago-area philanthropist who visited Afghanistan two years ago and decided she wanted to improve the lives of the illiterate and poverty-stricken weavers and their daughters. 

"What I saw there took a piece of my heart," she said. "The whole country is devastated. It looks like the moon." Duckworth traveled to Kabul on a military C-130 plane as part of a delegation serving on the U.S.-Afghan Women's Council, created by the two countries' governments to economically empower Afghan women. 

"We visited women and children living in a bombed-out high school," said Duckworth, a mother of four. "I'd look at the faces of those children and I would picture them being my children." 

Duckworth is founder and president of Arzu Inc., a Chicago-based non-profit organization that partners with U.S. and Afghan rug experts and exporters to ensure that female rug weavers in Afghanistan's poorest villages are paid prevailing wages. In exchange, the weavers must enroll in literacy programs and send their children--girls, in particular--to school. In some rural areas, illiteracy rates top 80 percent. 

`Planting seeds' 

"We're aiming at preserving the economic livelihood of the women and planting seeds by encouraging girls to go to school," said Duckworth, a retired partner and managing director of Goldman Sachs, a global investment banker. 

More than 20 years of war and persecution under the Taliban regime had driven many weavers and yarn-spinners--women belonging to Afghanistan's Shiite minority--into Pakistan. Now, as those families resettle in Afghanistan, Arzu hopes to introduce them to an income-generating enterprise. 

Buying one rug can support an Afghan family for a year, said Jasmine Nahhas di Florio, Arzu's project manager, who is based in New York. "The program enables women to pay off debts or buy shoes or fresh meat for the first time." 

This is how it works: Arzu pays rug exporters in Afghanistan to supply the finest materials, including hand-spun yarn using natural dyes. Exporters select the patterns and Arzu employs a team of Afghans to deliver the designs to weavers. Women weave the rugs, and upon completion they receive 50 percent of the rug's market price upfront. 

The Afghan rug exporters apply finishing touches and ship the rugs to another rug expert in Boston, who conducts one more quality check before Arzu receives them. Arzu sells the rugs, and the proceeds fund schools and literacy programs in Afghanistan. 

"We became the middleman," said Duckworth, who works without compensation for Arzu, which means "hope" in Dari, the dominant language in Afghanistan. 

At her recent party, 50 Afghan rugs were available for purchase. Knowing that the proceeds directly benefit poor families adds to the rugs' appeal, said Andrew Krukowski, a film producer/actor who attended the party. 

For a good cause 

"When people walk on this rug, you can tell them the money goes to the right people," he said. "So you don't have to feel bad." 

That night 13 rugs were sold. The proceeds, $43,000, included donations, according to Alyssa Rome, director of Arzu, in Chicago. 

So far 120 families have registered with Arzu in Afghanistan. A team of 10 Afghan workers travels to hard-to-reach villages--places, Duckworth said, that Westerners dare not go--to sign them up. 

Arzu also partners with international aid groups in the region, such as Save the Children, and helps fund existing literacy and health-care initiatives. "We try to fill in the gaps," she said.

 Duckworth has returned to Afghanistan twice since her first visit in January 2003. She was there most recently in March. She also serves on the board of the Business Council for Peace, a New York-based initiative that helps Afghan women business owners. 

"For Afghanistan to stand on its own two feet, it needs a private sector," Duckworth said.

 The U.S. Department of Commerce identified the rug export market as one of the quickest ways to jump-start the Afghan economy, Nahhas di Florio said. No infrastructure is needed because the women weave on looms inside their homes."They're really talented artists," she said. "We wanted to build on that." 

Afghan men have welcomed the opportunity for their wives to earn extra income, and priority is given to families headed by widows, who make up 25 percent of the program's participants, she said. 

Not all the women in poor villages know how to weave, Duckworth noted, so Arzu has opened its literacy and health-care programs to non-weavers as well as men and boys. "We don't want to create haves and have-nots," she said. 

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Chaman-Kandahar rail link: go-ahead signal from Afghanistan still awaited

Source: Business Recorder, Pakistan

6/july/2005 

Pakistan is desperately looking for a go-ahead signal from the Afghanistan government for the construction of Chaman-Kandahar rail link to get comparatively less expensive access to the Central Asian markets. Sources in the Railways Ministry told Business Recorder here on Wednesday that Islamabad has raised the issue during the visit of Afghan Transport Minister Enayatullah Qasemi to Pakistan last week. 

The governments of Pakistan and Afghanistan had agreed to lay railway track of about 103km Chaman to Kandahar that would further be extended to other Central Asian States. 

It was learnt that the government has completed initial feasibility report of the railway track between Chaman to Spin Boldak. The track would be laid down up to Kandahar. 

"We have made all the preliminary arrangements, but No Objection Certificate is still awaited from the Afghan government to move ahead," the sources said. 

The government has conveyed its reservations to the visiting Afghan minister regarding delay in issuing NOC for the most important link to enhance trade between these two neighboring countries, the sources said. 

They added Pakistan Railways would construct 10-12km railway track from Quetta to Afghan border. The track from Afghan border to Kandahar is the responsibility of the Afghan government. 

The government is also awaiting Afghan government's response to undertake study from extension of railway track from Kandahar to Khushka, which will provide access to Pakistan to the Central Asian markets. 

Meanwhile, it was reliably learnt that the Afghan minister has assured full support to Pakistan government in this regard. The Afghan minister had promised to get all necessary approvals from Karzai-led government as early as possible. 

Afghanistan - a war ravaged country - has very dilapidated infrastructure. However, vast railway network exists in all the Central Asian States, including Kazakhstan, Kyrgyzstan, Tajikistan, Uzbekistan and Turkmenistan. Pakistan direly needs access to these flourishing markets. 

The Afghan minister after conclusion of his visit was also reported as saying in Afghanistan that he and Pakistani railway authorities had discussed lying of a rail track between the neighbors to facilitate the movement of people and goods. 

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Japan to give Afghanistan 3.75 bil. Yen to help reconstruction

Wednesday July 6, 9:06 PM

(Kyodo) _ Japan 

Will offer Afghanistan 3.75 billion yen in grant aid to help improve infrastructure, build new schools and buy vaccines for infants, a Foreign Ministry spokesman said Wednesday. 

Of the total, 1.83 billion yen will mainly go to projects for infrastructure development, vocational training and removal of land mines in Balkh, Bamiyan, Kandahar and Nangarhar provinces, spokesman Hatsuhisa Takashima told a press conference.  

The Japanese government envisages that 1.02 billion yen will be used to build a total of 32 schools, most of which will be elementary schools, in Kabul and Parwan provinces, he said.  

Takashima also said 500 million yen will be allocated to vaccinating about 1.1 million infants against infectious diseases such as polio, while the remaining 400 million yen will help rebuild various facilities including houses in war-torn communities for 100,000 people in Afghanistan. 

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First generic medicines factory being set up in Afghanistan

Source: United Nations Development Program (UNDP)

Kabul, July 5, 2005 

Medicines production equipment arrives in Kabul. Public-private partnership equips Afghan population to produce safe and effective generic medicines. Today the donated production machinery for a newly constructed generic medicines factory named "Baz International Pharmaceutical Company Ltd." arrived in Kabul. It will be the first medicine plant built in Afghanistan since the civil unrest. About 300 million to 400 million tablets of urgently needed medicines such as antibiotics and analgesics will be produced each year. Production is scheduled to start in the fourth quarter of 2005. The locally produced generic medicines will significantly improve the availability of safe, effective and affordable medication in the country.  

The "Afghan Generic Medicines Project" brings together private and public partners. The project was launched in 2002 by the Swiss non-profit organization Business Humanitarian Forum (BHF), the Brussels-based European Generic Medicines Association (EGA) and the United Nations Development Program (UNDP) Country Office in Afghanistan. Deutsche Post World Net joined the project with its express and logistics subsidiary DHL to provide comprehensive support by organizing the logistics of the donated machinery and training of the local staff in storage and delivery methods. The project is being co-financed by DEG - Deutsche Invitations - und Entwicklungsgesellschaft mbH, one of Europe?s largest development finance institutes, with funds from the Public-Private Partnership Program of the German federal government. The plant will be fully Afghan-owned and managed by Dr. Karim Baz, an experienced local doctor.  

The project?s primary goal is to construct a pharmaceutical plant in Kabul to provide safe and effective generic medicines to the Afghan population. Currently, one-quarter of all Afghan children die before the age of 5, often from treatable infectious diseases due to the lack of proper medication. Approximately 40 local employees will be taught basic operating skills and production technology to allow them to be self-sufficient.  

The plant?s equipment and materials, as well as pharmaceutical expertise and training are being donated by the European Generic Medicines Association (EGA), the official body representing roughly 500 pharmaceutical companies from the generic medicines industry in Europe. In September 2005, 14 Afghan technicians will be trained in EGA member companies in Europe in order to start production in Afghanistan by the end of 2005.  

The BHF is responsible for the overall coordination and implementation of this project in cooperation with Dr. Baz. The BHF provides this support from its offices in Switzerland and from its field office in Kabul. In addition, the BHF is providing support in finding appropriate operations and management staff for the factory, developing a marketing plan, and providing overall business advisory services to Dr. Baz.  

DHL used its core competencies in multi-modal transportation and logistics as well as customs and export regulations to deliver the shipments. The production machinery was shipped to the United Arab Emirates and has been flown by two cargo planes to its final destination in Kabul. DHL has also committed to additional post-delivery activities related to the logistics of distributing the medicines once the plant is operational. DHL provides its logistical know-how in ensuring an appropriate and efficient delivery of the medication to hospitals and pharmaceutical outlets. In addition, DHL will safeguard effective training. DHL began its operations in Afghanistan in 2002 and now has three office locations in Bagram, Kabul and Kandahar.  

The project Partners BHF, EGA and Deutsche Post World Net have signed a two-year public-private partnership agreement with DEG. Ever since the launch of the government sponsored PPP Program in 1999, DEG has co-financed over 350 of these projects, especially in the fields of environment and qualification.  

All partners have reaffirmed their continuing commitment to the project beyond the completion of the plant to ensure the storage and transportation of the medicines once production begins. 

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Radio Voice of Paktika opens in Afghanistan

Date: 05 Jul 2005

Source: Internews Network Inc. 

Afghanistan's remote mainly-Pashtun province of Paktika is home to a new independent radio station set up by Internews. On June 22 with almost 400 people in attendance, the provincial governor of Paktika, Gulam Mangal, officially opened Radio Voice of Paktika. In a speech broadcast live on the radio, the governor congratulated the community, encouraging citizens to let their voices be heard through the new station.  

The station is the first independent broadcast media outlet in the southeastern province and offers an outlet for diverse opinions in a region that has seen ongoing attacks by renegade Taliban and their sympathizers. Representatives from several ministries and media development organizations were in attendance.  

Established by Internews Network with support from the U.S. Agency for International Development's Office of Transition Initiatives, the station began broadcasting April 4. Radio Voice of Paktika has a potential audience of almost 200,000 with a 45 meter mast, one of the tallest of any FM station in Afghanistan. The station broadcasts nine hours a day with both in-house programming and material from the daily news and entertainment program, Salaam Watandar, produced by Internews.  

Residents now have access to a local source of news, vital in preparation for Afghanistan's parliamentary elections this year. The station has been working closely with the local Joint Electoral Management Board office to develop programming initiatives educating listeners about the elections, including a program featuring interviews with local candidates.  

The station was originally based inside the governor's compound in Sharan, but has since moved into its own building, donated by the Provincial Reconstruction Team, which also has space for other cultural and media organizations.  

To ensure the long-term sustainability of the station, Internews is helping to raise funds from advertising contracts and the station has secured a contract with Media Support Solutions to play educational programming.  

Over the past two years, Internews has set up and supported 29 independent radio stations. The network now has an estimated signal reach of about 10 million people. 

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?Pakistan should allow Afghan trucks to enter?

5 July 5, 2005

KABUL 

Afghan Transport Minister Inayatullah Qasmi has hoped Pakistan would implement a bilateral agreement on the cross-border movement of trucks and buses between Pakistan and Afghanistan in three weeks. 

The minister told reporters on Saturday that he had asked Pakistani authorities in his meetings last week to allow 200 buses donated by India to travel through Pakistan to Afghanistan, the Pajhwok Afghan News agency reported. 

The minister added he had also discussed with his hosts the reopening of the Kandahar-Quetta and Nangarhar-Peshawar bus routes. 

Qasmi said the laying of a train between Afghanistan and Pakistan and the issue of Afghan traders? access to the Wagah border also figured in the talks. 

The Afghan minister said that although the agreement between Pakistan and Afghanistan allowed both sides to cross the border, trucks and Lorries from Afghanistan had been denied travel beyond Torkham and Chaman. 

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Afghanistan threatens to ban entry of trucks from Pakistan

Pakistan Times

07/05/2005 

ISLAMABAD - Afghan Transport Minister Inayatullah Qasimi on Monday termed his talks with Pakistani officials fruitful and result-oriented.

However, he said that Pakistani traders had easy access to Afghanistan, demanding that Pakistan should also provide easy access to the Afghan traders to its (Pakistani) ports otherwise Afghanistan would review its trade policy and ban Pakistan trucks' entry into Afghanistan.  

He said that he discussed with Pakistani officials the issue of provision of more facilities to Afghan traders. He said that the issue of Afghan Transit Trade also came under discussion. He hoped that further discussions in this connection would be held soon.  

Qasimi hoped that the issue of Afghan Transit Trade and provision of more facilities to the Afghan traders would be resolved in near future.  

He said that Pakistan should implement the ATT accord between the two countries. He said that he held positive talks with Pakistani officials for laying railway track between Quetta and Kandahar and Peshawar and Jalalabad.  

He also discussed with Pakistani officials the issue of permission to 100 Indian buses, gifted to Afghanistan, to pass through Torkham border, he said by adding; that Pakistani officials had agreed to allow these buses through Pakistan border. 

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Afghanistan's imports from China surge by 30pc

By: Zainab Mohammadi 

KABUL, July 4

(Pajhwok Afghan News) 

Chinese goods, accounting for a fourth of Afghanistan's total imports, have flooded local markets. Affordable prices are said to be a principal factor behind popular demand for these goods, whose import went up by 30 percent last year. 

Mohammad Azim Wardak, director of foreign business at the Commerce Ministry, told Pajhwok Afghan News on Monday the Sino-Afghan trade rose to $500 million in 2004, compared to $383 million in 2003. 

Deputy Minister for Commerce Ghulam Nabi Farahi put the value of Afghanistan's annual imports from different countries at more than two billion dollars. On the other hand, the strife-wrecked country's exports work out at three million dollars a year. 

The ubiquitous "made-in-China" tag can be seen on a wide variety of fabrics, electronic equipment, shoes and other products on sale in local markets. Given their low prices, these items are immensely popular with all categories of consumers. 

Kabul resident Atta Mohammad Faqirzada, with a Chinese vacuum flask in his hand, argued: "Costing 120 Afghanis, this thermos is dirt-cheap and hence affordable. Even a painter will charge more than this amount for painting the thermos." 

Fully satisfied with the quality of the Chinese merchandise, traders hope imports from China would further grow in the years ahead. Hamidullah Qadri, director of Afghanistan's International Chambers of Commerce, observed people preferred to buy cheaper things. And the Chinese goods were pretty low-priced, he maintained.  

"Positive policy of the Chinese government towards the private sector coupled with wage deflation has resulted in inexpensive manufactures," he contended. 

Jin Mayee, worker of the China-based British steel-melting company Foseco, attributed the country's rising manufactures to superabundance of raw material, low wages and incentives for exporters in terms of taxes. 

In response to queries e-mailed by this scribe, Jin said most Chinese companies - taking full benefit of the enabling environment, produced goods for exporting to a large number of countries around the world. 

Unable to meet its domestic demands, Afghanistan is a huge import market awash with a wide range of Chinese goods. 

Azim Wardak contended a large number of factories were destroyed by more than two decades of war, which had forced Afghanistan into a total reliance on imports in the absence of its own products. 

He added a number of factors including drought, cumbersome red-tape, an inefficient electricity system and poor infrastructure were militating against foreign investment in Afghanistan. 

He went on to underline a sustained balance between imports and exports, warning a hike in imports alone would be detrimental to the interests of the country - currently dependent on Pakistani, Iranian and Chinese supplies. 

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Soybean cultivated on trial basis in Afghanistan

By: Zainab Mohaqiq 

KABUL, July 4

(Pajhwok Afghan News) 

Soybean, which helps cure nyctalopia, iodine deficiency and malnutrition in children, has been cultivated over large areas of land in Afghanistan on a trial basis. 

Having a huge nutritional value and crucial role in removing undernourishment, soybean's trial cultivation was done two years back in Mazar-i-Sharif, capital of the northern Balkh province, by a US company called Nutrition Education International (NEI).  

Agriculture Ministry Press Officer Abdul Latif Rasooli told Pajhwok Afghan News on Monday the crop would be cultivated over 36 acres of land in 12 different provinces this year. 

He was hopeful of a total soybean yield of 40 tones, promising farmers would be provided with seeds from next year. More than 200 food items like cheese, biscuits and chocolates contained the soybean ingredient, he added. 

The NEI is eyeing a 300-tonne yield in Mazar-i-Sharif in the coming year and plans to use it in making food items. Soybean seeds have six varieties, each one cultivated based on the nature of the soil, season and climatic conditions. 

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India pledges $500m to Afghanistan

Source: IRNA

New Delhi, July 4 

India Monday strongly underlined its support to the reconstruction efforts in Afghanistan by pledging 500 million US dollars as loan to the visiting Afghanistan Foreign Minister Abdullah Abdullah. 

India also expressed its gratitude to Kabul for supporting its candidacy for permanent membership of the United Nations Security Council. 

India plans to help Afghanistan come back to normalcy and play the role of a stable regional country. 

Abdullah Abdullah is going to meet the Indian Prime Minister Manmohan Singh this evening when the two sides are expected to talk about the ways to involve Pakistan in the Afghanistan-India bilateral schemes. 

Over the last few years, India has pledged nearly half a billion US dollars to Afghanistan. New Delhi has shown substantial support to the cause of regeneration of Afghanistan. 

The sources said India hopes to continue work with Afghanistan towards capacity building, infrastructure projects that would stabilize the volatile country. 

K Natwar Singh, India's minister of external affairs left for Astana this morning. The simultaneous movements that tie India in the Central Asian region and Afghanistan are indicative of the seriousness with which New Delhi is involving itself in the region spreading from Afghanistan to Central Asia. 

Abdullah's visit is the latest chapter in the high-level dialogue between Kabul and New Delhi.India-Afghanistan relationship is expected to yield indirect benefits to India's thrusts for energy in the Central Asian region. 

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Investigations into ?fake? POL exports to Kabul begin

By: Imran Ayub

The Daily Times (Pakistan)

July 3, 2005 

KARACHI: Federal authorities are investigating what appear to be fake exports of petroleum products by the state-run Pakistan State Oil to avoid taxes, causing huge losses to the exchequer. 

A letter, dispatched to the managing director of PSO by the directorate general of intelligence and investigation of customs and excise a few months back, sought the company?s cooperation ?in catching the real culprits?. 

?Karachi office of DG Intelligence and Investigations (Customs, Excise and Sales Tax) intercepted a tanker lorry bound for Jalalabad, Afghanistan, while emptying its load of PMG at a petrol pump in Sadiqabad in March 2004,? said the letter. 

?The PMG was being exported by M/S PSO through a third party to Afghanistan while getting adjustment of duty, taxes and surcharge livable thereon. An FIR was lodged in the case and a probe was initiated.? 

Later on, the letter said investigations revealed that massive irregularities were committed in dubious exports by the PSO of POL products to Afghanistan through third parties by claiming illegal and fraudulent adjustments of the government levies. 

The letter disclosed that the initial probe by the customs Karachi office had confirmed 71 export consignments involving duty and taxes to the tune of Rs 24.77 million, which did not cross the border to Kabul. 

?These were actually disposed of in Pakistan,? said the letter and added that when the company?s management was informed of these irregularities, the PSO deposited an amount of Rs 3.63 million as escaped revenue.

 

?However, later on, instead of cooperating in the investigations, a petition was filed by the M/S PSO in the Sindh High Court against directorate of intelligence agitating therein the demand of documents required in the probe,? said the letter. Petroleum is among 10 products exported to Afghanistan, which saw an increase of 245 percent during the first half (July-December) of the fiscal year 2004-05 over the same period last year. 

The official figures show that during July and February 2004-05, Pakistan exported $75 million worth of crude oil of petroleum and bituminous minerals to Afghanistan out of total Rs 35.258 billion exports to the neighboring country. However, the disclosure of fake exports appears to be challenging the official figures. 

The letter to the PSO chief said the directorate general office at Karachi therefore made out contravention cases and the investigation into an FIR was underway. 

?However, the management of M/S PSO has been found to be obstructing the investigations instead of cooperating and helping in nabbing the actual culprits,? it added. 

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Kabul seeks refrigerated containers for fruit exports

By Khalid Mustafa

The Daily Times (Pakistan)

July 3, 2005 

ISLAMABAD: Kabul has sought permission from Islamabad to avail itself of the facility of refrigerated containers to for the export of fresh fruit to India, Bangladesh and the Persian Gulf, as under the current arrangement Afghanistan?s fruit loses its freshness and quality when it reaches it destinations in the above-mentioned countries through Pakistan. Kabul has made this request through the Foreign Office. 

According to a government official, the export of goods from Afghanistan will be handled by the National Logistics Cell (NLC) and the Pakistan Railways under the Afghan Transit Trade Agreement (ATAA). He said the government of Pakistan needed to introduce an amendment to the ATTA to extend the facility to Afghanistan. 

?The request of Kabul is under consideration, but a decision on the request will be made after speaking to stakeholders.? 

The official said the visit of Commerce Secretary Tasneem Norrani and CBR Chairman Mr Yousaf Abdullah to Kabul had been long overdue, but the visit could not be made because of the officials? busy schedules. 

During a meeting in Kabul, a trade package will be discussed with the Afghanistan government and the remaining 6 items in the negative list under the ATTA will also be discussed. The government of Afghanistan has been demanding removal of the remaining six items in the negative list, including cigarettes and cigarettes of tobacco or of tobacco substitutes, cooking oil, automobile parts, televisions, telephones and tyres and tubes. 

During the visit, the new request of Kabul seeking the facility of refrigerated containers for the export of fruit to other countries will be discussed. 

The official said Prime Minister Shaukat Aziz was also planning to visit Afghanistan some time during the third week of July. During the prime minister?s visit, Pakistan may announce removal of the remaining six items and accede to the request made by Kabul. 

During the first 10 months of the financial year 2004-05, Pakistan?s exports to Afghanistan stood at $960 million while the value of imports from Afghanistan of fresh fruit, dry fruit, spices, and timber, scrap and country drugs was $50 million. 

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 Uruzgan farmers get improved seeds and fertilizers

By: Zarghona Salehi

KABUL, July 3

(Pajhwok Afghan News) 

The Ministry of Agriculture, Livestock and Food has distributed more than 45 metrics tons of improved seeds and 232 tons of fertilizers to farmers in the southern Uruzgan province.

Agriculture Ministry spokesman Abdul Latif Rasooli told Pajhwok Afghan News on Sunday 3,500 growers had benefited from the assistance provided by the USAID.

He added the assistance was essentially aimed at putting an end to poppy cultivation and improving agriculture in the country. The official hoped the aid would go a long way in discouraging poppy cultivation.

USAID Mission Director Patrick Fine revealed his office planned to extend similar help to farmers in all Afghan provinces. According to an USAID report, poppy cultivation has been reduced by 50 percent in Tirinkot and chora districts of the Uruzgan province. 

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India reaffirms reconstruction aid to Afghanistan

Deepika Global, India

3 July 2005 

India today reaffirmed its commitment to the reconstruction of war-torn Afghanistan through its 500 million dollars debt program. 

This was conveyed by External Affairs Minister K Natwar Singh to his Afghanistan counterpart Abdullah Abdullah who arrived here this morning on a two-day official visit to consolidate Indo-Afghan relations and have discussions with Indian leaders on economic reconstruction of his country. 

The two ministers also discussed the security situation in Afghanistan especially the recent spurt in violence attributed to the Taliban. 

They also discussed the regional situation and Afghanistan-US strategic partnership which was signed in Washington on May 3.  

The External Affairs Minister thanked Afghanistan for co-sponsoring the G-4 framework resolution and also for its constructive role in the Organization of Islamic Countries. 

India has already committed more than 400 million US dollars as financial assistance for Afghanistan's reconstruction programs including in building infrastructure, education and healthcare facilities which have been destroyed during the more than two decades of strife in the war-torn country. 

Officials described the visit as part of the continuing high-level interaction between the two countries which have given bilateral relations a big boost.  

Tomorrow, he will also call on Prime Minister Manmohan Singh who is expected to visit Afghanistan in September.  

The External Affairs Minister briefly visited Kabul on February 15 on his way to Pakistan. He called on Afghanistan President Hamid Karzai, King Zahir Shah and had a meeting with Dr Abdullah. 

During the half-day visit, Mr.u Natwar Singh gifted more than 100 army vehicles, which is part of the 285 vehicles that India has committed, to the Afghan National Army. India is constructing Afghanistan's Parliament House building besides helping rebuild other infrastructure. 

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Mood downbeat ahead of Shaukat's Kabul visit

By: Pakhtun Sahar & Ferozan Danish Rahmani 

July 2

(Pajhwok Afghan News) 

Official pronouncements on warming Pak-Afghan ties notwithstanding, Prime Minister Shaukat Aziz's trip to Kabul is widely seen as a mere photo opportunity. Independent political observers argue Shaukat Aziz's visit, coming as it does hard on the heels of a spate of attacks in Afghan provinces bordering Afghanistan, won't go far enough in removing the existing mismatch of perceptions between the two countries on the question of counter-terrorism. 

But Pakistan's Foreign Office is optimistic the prime ministerial trip later this month will lend a welcome fillip to bilateral trade relations. Pakistani officials also hope the visit will help patch up differences between the estranged neighbors. 

Looking at the visit through rose-tinted spectacles, Foreign Office spokesman Jalil Abbas Jilani told Pajhwok Afghan News on Saturday Shaukat Aziz would travel to Afghanistan later in the month. Dates for the visit will be firmed up soon. 

Jilani, clinging to his diplomatic finesse, remarked the Pakistani leader to be accompanied by a ministerial delegation - would go into talks with President Hamid Karzai and other senior Afghan officials on issues of mutual interest. 

Among other things, he added, regional and international situation and greater trade links between the two countries would figure prominently at the official-level negotiations. 

Jilani maintained Pakistan was already training Afghan bankers, development planners and tax-collectors in line with the proactive role it wanted to play in the reconstruction of the war-battered country. 

"During the prime minister's visit," the spokesman continued, "the two sides will also explore other avenues where Pakistan can cooperate with the Afghan brethren." 

However, of late the political mood in Afghanistan with regard to its relationship with Pakistan has been distinctly pessimistic. Former US ambassador Zalmay Khalilzad and a number of high-ranking Afghan officials have blasted Islamabad for a recent surge in militant violence in southern and eastern Afghanistan. 

Pakistan, they charge, is a reluctant partner in the US-led war on international terror. They accuse Islamabad of failing to do enough to rein in Taliban insurgents hiding on its soil or curb cross-border movement of fighters intent upon weakening the incumbent Afghan government.  

Habibullah Rafi, noted Afghan political analyst, stresses Pakistan must go beyond its oft-repeated claims of brotherhood and fellow-feeling. On the diplomatic level, he points out Islamabad has been harping on its desire for forging deeper links with Kabul. Nonetheless, he asserts, such vows have not been translated into coherent policy. 

"Although President Musharraf has once again assured Hamid Karzai of Pakistan's strong friendship and cooperation, the ground situation hasn't changed at all. It's the politics of ostentation, a damage-control exercise - the obverse of what we expect from the neighboring country. We are awaiting a real change in what is going on behind the scenes," he observed. 

In a similar vein, a seasoned Pakistani journalist has no cause for sanguinity about wider Pak-Afghan economic links. "Shaukat Aziz's Kabul visit, on the face of it, will not be of much consequence in that other countries have far more robust links with Afghanistan." 

Ikram Hoti believed: "Contracts for reconstruction projects may be the only gain the prime minister's visit may bring to Pakistan." He would not predict what good the trip may do to Afghanistan. 

But Qasim Akhgar, an Afghan intellectual, takes a mite cheerful view of the Pakistani premier's forthcoming journey. Negotiations and diplomacy are always the best way of mending fences between nations, he contends. 

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AFGHANISTAN'S RECONSTRUCTION GOING FULL STEAM AHEAD

Asia Pulse (Pajhwok Afghan News)

1 July 2005 

The Ministry of Rural Rehabilitation and Development (MRRD) will complete thousands of small reconstruction projects across the country under the National Solidarity Program. Minister for Rural Rehabilitation and Development Mohammad Hanif Atmar told journalists here on Thursday that as many as 8,300 projects costing US$100 million and being executed in 33 different provinces would be completed soon.  He added the National Solidarity Program largely focused on potable water schemes, irrigation plans, building schools, upgrading the power system and road construction. 

In response to a query, the minister claimed locals had been consulted on which projects suited them best. The schemes under the National Solidarity Program were initiated in line with suggestions floated by residents and in deference to their genuine requirements. 

In all, Atmar pointed out, 25,000 villages would benefit from the 18-month-old program, which would run for another three years. 

But the reconstruction effort will continue beyond the three-year duration of the plan. Following the plan's conclusion in three years from now, the minister explained, the government would extend loans to the masses for reconstruction projects. 

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Thousands of reconstruction projects on the verge of completion

By: Mustafa Basharat

KABUL, June 30

(Pajhwok Afghan News) 

The Ministry of Rural Rehabilitation and Development (MRRD) will complete thousands of small reconstruction projects across the country under the National Solidarity Program. 

Minister for Rural Rehabilitation and Development Mohammad Hanif Atmar told journalists here on Thursday that as many as 8,300 projects costing $100 million and being executed in 33 different provinces would be completed soon.  

He added the National Solidarity Program largely focused on potable water schemes, irrigation plans, building schools, upgrading the power system and road construction.  

In response to a query, the minister claimed locals had been consulted on which projects suited them best. The schemes under the National Solidarity Program were initiated in line with suggestions floated by residents and in deference to their genuine requirements. In all, Atmar pointed out, 25,000 villages would benefit from the 18-month-old program, which would run for another three years. But the reconstruction effort will continue beyond the three-year duration of the plan.  

Following the plan's conclusion in three years from now, the minister explained, the government would extend loans to the masses for reconstruction projects.  

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Further on New Student Radio Station Launched in Khost Province

(Hindokosh News Agency, Kabul)

30 June 2005 

Farah, 30 June: A radio station has been launched in Khost Province and will start broadcasting tomorrow. About 500 students from six Afghan universities will be connected to the internet via the station. The universities of Kabul, Mazar-e Sharif, Herat, Khost, and Kandahar are included in the scheme. 

At least 30 journalists have been trained to work for the station. The station will provide practical training to journalism students. The station, which is called the Voice of the Young People, has been funded by USAID and is assisted by the Ministry of Higher Education. 

It is worth pointing out that radio stations have been set up in the above-mentioned six universities and are broadcasting bulletins. Students receive practical training at these stations. 

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World Bank Provides Supplemental Grant for Afghanistan?s National Solidarity

http://www.worldbank.org/af

30/06/2005  

The World Bank today approved a US$28 million grant to continue supporting the Afghanistan National Solidarity Program (NSP), which provides resources for reconstruction and development activities at the community level, and for strengthened local governance. The NSP was launched in 2002 and has already received US$117 million grant in World Bank?s International Development Association (IDA) support in addition to US$42 million grant from the Afghanistan Reconstruction Trust Fund (ARTF) and US$11 million grant from Japanese Social Development Trust Fund (JSDF). The program, which is financed by several sources, is under implementation in 159 districts in 33 of the country?s 34 provinces.  

The NSP provides thousands of rural villages with access to drinking water, small irrigation schemes for agriculture, rural roads, micro hydro-electrical plants and generators for domestic and rural productive activities, training and livelihood projects, schools, sanitation, and clinics among others. 

Decades of conflict have resulted in extensive destruction of infrastructure and massive population displacements in Afghanistan, eroding the human, social, and physical capital. A severe drought lasting from 1999 to 2002 further increased rural poverty. The National Solidarity Program provides technical assistance and assigns grants to the rural communities for reconstruction and/or development projects that are planned and managed by the communities themselves through a democratic process. 

A critical aspect of this project is the process of decision making surrounding the use of the grants. Building the foundation for solid local governance, consultation, and the legitimacy of local leadership, Community Development Councils are elected through secret ballot. These councils then lead a participatory process in the community to decide how the funds will be used. By May 2005, implementation of the project was ongoing in 8,268 villages, of which 7,348 had elected Community Development Councils, and 9,247 had submitted subproject proposals. 

?The National Solidarity Program has demonstrated that, despite a volatile security situation in much of the rural areas, it is possible to launch a large-scale project across the country,? said Norman Piccioni, World Bank Lead Rural Development Specialist, ?More importantly, it shows that rapid and measurable impact can be achieved while enhancing the longer-term process of building local governance.? 

The project has enhanced government effectiveness by supporting the Ministry of Rural Rehabilitation and Development and by developing capacity to set standards and procedures for financial management, disbursement, and implementation of community projects.   

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