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Economic Press Review Afghans ask: "What's insurance?" Afghan TV switches over to digital system US House panel backs $45 bln for Iraq, Afghanistan Bush Pledges $2 million for electricity renovation Afghan Tolo TV Questions Effectiveness, Purpose of New Ministries Two Baghlan villages get power generators Bush pledges $2m for boosting Afghan power sector Flourishing rupee trade unnerves Afghans Bank Alfalah branch opens in Kabul Fruit exports via new route being mulled Afghan artifacts on display in Peshawar Indian project to light up Kabul with power from Uzbekistan ADB will provide aid to Afghanistan for evaluating uplift impact Government loans to fund projects in Afghanistan World Bank Provides Grant Support Pakistan in slumber as others grabs Afghan business MTCP Enhances Cooperation between Malaysia-Afghanistan New income tax law is in everyone's interest Afghan bank in debt to Pakistan railways Press Clippings Afghans ask: "What's insurance?" By: Zainab Mohaqiq KABUL, May 25 (Pajhwok Afghan News) A widespread lack of awareness of insurance cover in Afghanistan can be gauged from the minuscule number of insured government employees and vehicles plying the Kabul-Mazare-i-Sharif Highway. Sayed Ali Hussainkhail, acting president of the Afghan National Insurance Corporation (ANIC), on Wednesday ascribed the dismally low insurance trend to common ignorance about benefits of the indemnity policy. However, speaking to Pajhwok Afghan News, he hoped the situation would improve after the masses realized the level of protection offered by insurance policies. At the moment, the ANIC ambit is confined to insuring government servants and vehicles alone. Under relevant government rules, he explained, the mandatory existing cover was limited to state workforce, vehicles and airplanes alone. The corporation has not yet introduced a full spectrum of insurance policies - with life, real estate, fire and joblessness staying outside its sphere. But insurance is a recondite - if not alien - concept to Afghans, who don't know even broader objectives behind the scheme and curiously ask what it means. "What is insurance? I have heard this word for the first time," said Mohammad Daud, 35, from the Karata-e-Parwan locality of Kabul. Reminded of this deep-rooted unawareness, Hussainkhail pointed out an insured laborer died recently while working on the Kabul-Mazar Highway and the Afghan National Insurance Corporation was going to pay his family a sum of $6,600. At least one man, having an insured vehicle, complained the corporation spoke of arcane laws when approached in the event of an accident. "After my car was damaged in a crash, the insurance company - citing a plethora of rules - told me I was entitled to nothing," lamented driver Hashmat Khan. The corporation earned 16 million Afghanis ($320,000) in 2004, but Hussainkhail is optimistic of a revenue surge this year. "In two months, we have earned six million Afghanis ($120,000)," he told this scribe. He promised 15-year-old rules of the corporation would be amended to include private investors in the enterprise. Founded in 1964, the Afghan National Insurance Corporation has already joined the Asian Insurance Association, a World Insurance Association affiliate. But Afghanistan is not yet a member of the world association.
Afghan TV switches over to digital system By: Zainab Mohammadi KABUL, May 25 (Pajhwok Afghan News) The Afghan National Television Wednesday switched over to a new digital system. The conversion from analogue to a digital system took two years and was finalized with financial assistance of $7.44 million from the government of Japan. Ghulam Hassan Hazrati, director of the National TV, said they had installed modern equipment and machinery in studios besides erecting a powerful antenna at the Asmai Mountain. "Now that we have installed an advanced and sophisticated system, TV programs will reach a larger number of viewers," he hoped. Established in 1976, Afghan National TV was extensively damaged during decades of war and stopped airing transmissions at times. It goes on air from 09:00 am to 12:00 pm.
US House panel backs $45 bln for Iraq, Afghanistan Tue May 24, 4:50 PM ETUS WASHINGTON (Reuters) A House of Representatives subcommittee on Tuesday approved another $45 billion for the Iraq and Afghanistan wars, which would bring the costs of the U.S. military operations there to more than $300 billion. The House Appropriations Defense subcommittee agreed in a closed session to add the emergency money to its bill to fund the Pentagon in the fiscal year starting on Oct. 1. Lawmakers have said the Pentagon would need a "bridge fund" for Iraq and Afghanistan to carry it from October through March 2006 when Congress will have to pass another emergency spending bill. The Pentagon has just received $76 billion for the wars from an $82 billion emergency bill Congress passed this month. With the emergency money, the defense subcommittee's bill would provide $408.4 billion for the Pentagon, an Appropriations Committee spokesman said. The Senate and House Armed Services committees have endorsed the bridge fund idea, and passed bills calling for about $50 billion in emergency funds for Iraq and Afghanistan for the first half of next year. The Appropriations committees actually allocate the funds. The Senate Appropriations Committee has not yet taken up its version of the spending bill. Bush Pledges $2 million for electricity renovation By: Lailuma Sadid KABUL, May 24 (Pajhwok Afghan News): An agreement of strategic partnership was signed between Afghanistan and the United States of America in the White House overnight, Afghan presidential office said on Tuesday. President Hamid Karzai and George W Bush negotiated on various issues but their talks centered on Afghan prisoners handover to Afghanistan. Bush pledged US would continue to help in reconstruction, economic development, training of national army and police. He said "We have given sacrifices of lives in Afghanistan so we won't abandon this country until we achieve what we have to." adding US soldiers would be beside Afghans to maintain security, fight against terrorism, extremism and narcotics. Bush said his country opened another chapter of assistances with Afghanistan by signing the strategic partnership agreement. A part of the agreement says it isn?t against the interest of any country. The talks mainly involved Afghan prisoners in Guantanamo Bay. Afghan president asked for the transfer of prisoners to Kabul. He said "We want our prisoners be sent to Afghanistan. We can keep them in a safe place inside Afghanistan." But Bush said, "We don't want these prisoners to form a front against us again.", adding that construction of tightly-secure place was important in Afghanistan. He also suggested that teams be formed to help in the process of transfer of prisoners to Afghanistan. According to presidential press office, US promised a mass grant of $2 million to rehabilitate and renovate the destroyed and feeble electricity stations in Afghanistan. Karzai also met with US vice-president Dick Cheney and talked about trilateral pipe-line project between Turkmenistan, Afghanistan and Pakistan. The latter presented the President two coins of BC era to be preserved in the Afghan museum.
Afghan Tolo TV Questions Effectiveness, Purpose of New Ministries (Tolo TV, Kabul) 24 May 2005 This edition of the program assessed the achievements and worth of three new government ministries, those of youth affairs, the economy, and counter-narcotics. Former Planning Minister Ramazan Bashardoost criticized the existence of these additional ministries, saying that their creation had resulted in a duplication of work and a slowdown in government business. He said that when he was a minister he had unsuccessfully proposed reducing the number of ministries to just 15, but this had been rejected by Amin Farhang, the former reconstruction minister, and Hedayat Amin Arsala, the former deputy head of state and head of the Administrative Reforms and Civil Service Commission. "I guess there should be no more than 15 ministries in Afghanistan, because if we have more than 15 it causes confusion in the division of labor; secondly it causes a lack of speed in government affairs; and finally the government has to pay additional salaries. We currently have 27 ministries. I think political issues and considerations are now deemed more important than merit, efficiency and work in deciding the structure of government," Bashardoost said. The program aired remarks by Youth Minister Amena Afzali, explaining her ministry's achievements and progress since its creation. She said the establishment of her ministry was a prerequisite for helping youths improve their status and address their problems. The presenter, however, dismissed the achievements of the Youth Ministry as self-serving, saying it was merely concerned with its own structure, staffing and budget. The ministry had done nothing to help the country's youths. Noting that the Ministry of Economy was created after the dissolution of the Ministry of Reconstruction, Planning and General Department of Statistics five months ago, the presenter described the role of the new ministry as vital. Afghanistan was in dire need of a strong and workable economic strategy. Economy Minister Amin Farhang said: "We should study and search as far as possible in order to create an effective and advanced economic system in Afghanistan that can address the daunting challenges and problems." On the Counter-Narcotics Ministry which aims at the eradication of poppy cultivation in Afghanistan -- the presenter said the creation of ministries and offices alone could not put an end to such cultivation, but was a political gesture that demonstrated commitment to the international community. Afghanistan would only be able to eradicate poppy cultivation if the current government was solidly determined and politically dominant throughout the country. Counter-Narcotics Minister Habibollah Qaderi urged the provision of alternative livelihoods for farmers. "We cannot eradicate poppy cultivation by force; we must provide alternative livelihoods and other employment opportunities to farmers, so that they give up poppy cultivation voluntarily. Also, we need further reforms in the administrative system. There remain people within government offices who are barriers in the path of the implementation of national strategies. Moreover, Afghanistan requires a sound judicial system to prosecute drug dealers," Qaderi said. In the presenter's view, Afghanistan badly needed a strong, practical and effective administration. The creation of additional ministries would not only result in the duplication of work but would also be too expensive.
Two Baghlan villages get power generators By: Sher Mohammad Jahesh PUL-I-KHUMRI, May 24 (Pajhwok Afghan News) Two power generators were installed in Khenjan district, 50 kilometers south of the northern Baghlan province, official said on Tuesday. Dr. Shah Nawaz Sharar, Baghlan rural development director, told Pajhwok Afghan News the hydroelectric and diesel-electric generator projects were funded by the Agha Khan Foundation. Mohammad Sanjar Ziaee, an official of the Agha Khan Foundation, said the generators installed in two villages would provide 220 families with electricity. He added consumers would have to pay bills at a flat rate of 100 Afs ($2) each to community councils. Haji Ahmadullah, a village resident, remarked: "We are happy that electricity has finally found its way to our hamlet. It will go a long way in strengthening the local economy. Earlier, we used power batteries which cost us too much."
Bush pledges $2m for boosting Afghan power sector By Lailuma Sadid KABUL, May 24 (Pajhwok Afghan News) An agreement of strategic partnership was signed between Afghanistan and the United States of America in the White House overnight, Afghan presidential office said on Tuesday. President Hamid Karzai and George W Bush negotiated on various issues but their talks centered on Afghan prisoners handover to Afghanistan. Bush pledged US would continue to help in reconstruction, economic development, training of national army and police. He said "We have given sacrifices of lives in Afghanistan so we won't abandon this country until we achieve what we have to." adding US soldiers would be beside Afghans to maintain security, fight against terrorism, extremism and narcotics. Bush said his country opened another chapter of assistances with Afghanistan by signing the strategic partnership agreement. A part of the agreement says it isn?t against the interest of any country. The talks mainly involved Afghan prisoners in Guantanamo Bay. Afghan president asked for the transfer of prisoners to Kabul. He said "We want our prisoners be sent to Afghanistan. We can keep them in a safe place inside Afghanistan." But Bush said, "We don't want these prisoners to form a front against us again.", adding that construction of tightly-secure place was important in Afghanistan. He also suggested that teams be formed to help in the process of transfer of prisoners to Afghanistan. According to presidential press office, US promised a mass grant of $2 million to rehabilitate and renovate the destroyed and feeble electricity stations in Afghanistan. Karzai also met with US vice-president Dick Cheney and talked about trilateral pipe-line project between Turkmenistan, Afghanistan and Pakistan. The latter presented the President two coins of BC era to be preserved in the Afghan museum.
By: Mustafa Basharat KABUL, May 23 (Pajhwok Afghan News) The Ministry of Finance has rejected a proposed reduction in the income tax rate from 20 to 0.5 per cent, Pajhwok Afghan News reliably learnt on Monday. The proposal was forwarded by the Afghan International Chamber of Commerce to the ministry, with a view to expanding the tax base by bringing the maximum number of people under tax net. Under the existing law, traders have to pay five to 20 per cent tax on their earnings. As business activity is yet to pick up in the war-ravaged country, traders believe the existing rate of income tax is inordinate. They had conveyed their reservations to Finance Minister Anwar ul Haq Ahadi and demanded a reduction in the rate. But the ministry refused to accept the proposal.
Flourishing rupee trade unnerves Afghans Pajhwok Afghan News 05/23/2005 By: Nizami and Zainab Mohaqiq ASADABAD - Flourishing trade in the Pakistani currency in this provincial capital and adjoining Kunar have prompted residents to complain of an unwarranted loss in exchanging the rupee for the afghani. In the two markets, neither shopkeepers nor traders accept the Afghan currency, which has to be changed into the rupee for all sorts of transactions. The trend, people claim, not only affects the country's economy but also results in a financial loss to commoners. Ezatullah, a resident of Asadabad, told Pajhwok Afghan News on Monday: "I am a daily-wager earning 100 Afghanis a day; however, I have to change it into the Pakistani rupee before purchasing daily-use items." "Money-changers charges two Afghanis per 100 rupees while the rest of the profit goes to the shopkeeper's pocket," he argued, asking authorities concerned to save him the loss he could not afford. Haji Abdur Rehman, a money-changer in the Asadabad market, linked the rising rupee trade to insufficient circulation of the Afghani currency in the main bazaar. "Government officials alone are using the afghani for daily transactions while common citizens have to be content with the Pakistani currency." His colleague Muhammad Ajeeb Dad called the problem "a gift from the marathon war" in the country. He asked the government to direct Afghan traders to conduct daily transactions in the local currency. "That's the only option to resolve the crisis." Although the relevant fiscal law requires transactions in the Afghan currency, its brazen violation in Kunar is going on unchecked. Kabul-based economist Saifuddin Saihoon, asked for comments on the issue, said the problem would be resolved once the country started exporting its products. Kunar Bank chief Hazrat Khan told this news agency the rupee flooded the local market owing to the sharp depreciation of the local currency, a trend that encouraged returning refugees to bring in the Pakistani legal tender. "Local authorities are not serious about discouraging the trend," he said, adding the Central Bank had already directed them to inform traders to carry out daily transactions in the Afghanis. Afghan Central Bank Governor Noorullah Dilawari the use of the Afghan currency in business deals was mandatory and the violators should be fined to the tune of one hundred thousand Afghanis.
Bank Alfalah branch opens in Kabul By : Zainab Mohaqiq KABUL, May 22 (Pajhwok Afghan News) Bank Alfalah opened a branch in this capital city, raising the number of the private banks operating in the country to a dozen. The UAE-based bank's branch started working on Saturday with more than five million dollars investment. Mohammad Esa Turab, deputy chief of the Afghanistan Central Bank, said a minimal investment of five million dollars was mandatory for the launch of a private bank in the country. With a growing deposit base, Bank Alfalah offers facilities such as transferring remittances, credit cards, auto loans, home loans, ATMs, long-term finance, trade finance, structured finance and investment in money market and forex market.
Fruit exports via new route being mulled By:? Zubair Babakarkhel KABUL, May 22 (Pajhwok Afghan News) The Afghan government plans to use the Tagab-Sarobi Road - running through the Kapisa province - for fruit exports to Pakistan from Northern provinces. The Kabul-Jalalabad Highway, passing through Mahipar, has been closed for construction, with a longer alternative route now linking the capital city to Sarobi. A delegation comprising officials of the Ministries of Public Welfare, Transport and Trade left for Kapisa on Sunday to oversee arrangements for opening the Tagab-Najrab Road. A member of the delegation and spokesman for the Ministry of Social Welfare Wali Muhammad Rasooli told Pajhwok Afghan News Lataband was a tough route for heavy vehicles. He said a huge quantity of dry and fresh fruits from the northern provinces was about to arrive here for export to Pakistan via the same route. "We have to prepare the existing road so as to enable heavy vehicles to ply it," he said, stressing the need for building four bridges from Jabl-us-Siraj in the Parvan province to Sarobi. A spokesman for the Ministry of Transport Muhammad Hashim Waez Zada said Afghanistan would have a bumper fruit produce this year in the wake of rains and arrangements must be made to ensure its quick export to Pakistan. He said arrangements for the construction of the road would be finalized after the return of the delegation from the Kapisa province.
Afghan artifacts on display in Peshawar By: Wagma Saba Amir PESHAWAR, May 21 (Pajhwok Afghan News) A three-day exhibition of Afghanistan's historical artifacts, handicrafts and gemstones was inaugurated in Peshawar, the NWFP border city, on Saturday. Organized by the Afghan Cultural Centre, the exhibition was opened by Afghanistan's Deputy Minister for Information, Culture and Tourism Moeen Nasrullah Stanakzai. Besides others, the Afghan Consul-General Haji Abdul Khaliq Farahi, chief of the Afghan Cultural Centre Zahir Jan Babari and former chairperson of the Human Rights Commission of Pakistan Afrasiab Khattak were present on the occasion. A variety of handicrafts, ornaments, traditional dresses, gemstones and historical books are on display at the exhibition. Talking to Pajhwok Afghan News, Moeen Stanakzai said they wanted to inform the world of the rich Afghan culture. He said despite decades of war in Afghanistan, they had kept their traditions, culture and language alive. "This cultural exhibition shows that the Afghan nation is alive, trying to preserve its history and culture," he observed.
Indian project to light up Kabul with power from Uzbekistan Source: The Indian Express Saturday, May 21, 2005 Committed to building infrastructure in Afghanistan, the government is all set to clear the Rs 500 crore Pul-e-Khumri to Kabul power transmission project that will bring the much-needed Uzbek power for the capital. The project is to be executed by the Power Grid Corporation. Sources said that the Finance Ministry has already approved the key project after a nod from the committee on non-planned expenditure. It is now waiting for a green signal from the Cabinet after which the public sector undertaking would take on the construction of the 205 km transmission line. As part of the reconstruction exercise, Kabul would be getting 300 MW of power from a hydel power venture in Uzbekistan. Power would first be evacuated from the power station all the way up to Pul-e-Khumri and thereon to Kabul. Speaking to The Indian Express, chairman of PGC, R P Singh, said that the first leg is to be executed with funding from the Asian Development Bank while the Pul-e-Khumri to Kabul leg is being financed by the government of India. Company executives also mentioned that appropriate bidders had not been identified for the Uzbekistan to Pul-e-Khumri leg. However, the second leg would be a 220 KV transmission line built over the Hindu Kush range with some parts of the project that need to be constructed at a height of around 4,000 meters. PGC has already conducted a pre-feasibility study for the project and held a pre-bid vendor conference this morning at its head office. Singh said that the project has two challenging parts. There's only one road connecting Pul-e-Khumri to Kabul. In addition to this, the road is peppered with land mines with their concentration increasing as one gets closer to Kabul. The second difficult part of the project is a 30-40 km stretch along the high reaches which is covered with snow for around nine months of the year. Apart from help from de-miners, some of the company executives who visited the area for the pre-feasibility study said that they may also use the help of locals to identify which parts of the road were dangerous and which weren't. Company executives said that they need around 42 months to finish the entire project, which can be brought down to around 36 months as they need three seasons to finish the stretch that is covered with snow and ice. On the financial part of the project, PGC would be allowed to spend only around Rs 50 crore for local procurement (cement for instance) while most of the material (wires, cables, towers et al) would have to be procured from Indian vendors, they said. They also said that once the final nod from the government is given, executives from the company would deploy in Afghanistan to execute the transmission project.
ADB will provide aid to Afghanistan for evaluating uplift impact Source: Business Recorder Saturday, May 21, 2005 The Asian Development Bank (ADB) would help Afghanistan's Ministry of Rural Rehabilitation and Development (MRRD) to monitor and evaluate the development impact of its programs through a technical assistance (TA) grant, approved for $415,000. According to sources, the MRRD was the lead ministry mandated to improve rural livelihoods and ensure social protection in Afghanistan. The government would contribute 113,000 dollars toward the TA's total cost of 563,000 dollars. The MRRD was the executing agency for the TA, which would be carried out over 12 months beginning July 2005. They said, "The TA would develop a system for evaluating the impact of the MRRD's programs that was well adapted to Afghanistan's conditions, simple and easy to understand, and flexible enough to expand in the future." Since the MRRD had no experience with participatory monitoring and evaluation, and there were no practical examples in Afghanistan to follow, a pilot project would be set up to create a model in which beneficiaries played an active role in monitoring and evaluating MRRD's programs, sources said. Based on the results of the pilot project, a plan would be developed to introduce participatory techniques in impact monitoring and evaluation into all MRRD community-based programs, the sources added. Sources disclosed that the TA would also carry out a comprehensive training program for the MRRD's staff on impact monitoring and evaluation. Afghanistan remained one of the poorest countries in the world with an estimated 80 percent of the population living in poverty, they added. According to them, for the fiscal year 2004-05, the MRRD's total portfolio was about 300 million dollars, which included the national emergency employment program, the rural water and sanitation program and the micro-finance investment and support facility.
Government loans to fund projects in Afghanistan Daily Yomiuri (Japan) 21 May 2005 The government has formulated a policy under which it plans to extend yen loans to Afghanistan as early as next year, sources said Friday. It will be the first major yen loan to support the war-torn country's reconstruction, and the funds will be spent on such large-scale projects as building a dam and a large power plant. Japan provided a small amount of yen loan to the country in the 1960s. Afghan Foreign Minister Abdullah Abdullah met Wednesday in Tokyo with Shiro Sadoshima, deputy director general of the Foreign Ministry's Economic Cooperation Bureau, and officials from the Finance Ministry and the Japan Bank for International Cooperation. They agreed in principle to accelerate preparatory work toward providing the loans. The Afghan government plans to draw up a national development program by the end of the year. Tokyo will dispatch a team early next year to select the projects for which the country will provide assistance. Besides the construction of a dam and a power plant, Japan will study the possibility of improving the road network to help the country become a hub for distribution of goods in central Asia. The government also will consider improving agricultural areas to encourage farmers to grow legal crops rather than opium poppies. Afghanistan produces nearly 90 percent of the world's opium. Japan previously has provided Afghanistan $870 million in aid along with technical cooperation to help remove land mines and soldiers return to the workforce.
World Bank Provides Grant Support 20 May 05 Source: World Bank Press Release The World Bank approved today a US$85 million package of grant assistance to Afghanistan, of which US$40 million will fund higher education, and US$45 million will support the country's economic and social recovery through improved road and airport access to goods, markets and social services. The large proportion of grant funding to Afghanistan recognizes the scale of the challenge, particularly the infrastructure needs, facing this nation as it recovers from more than two decades of conflict. Over the past three years, the government of Afghanistan has made notable efforts to revive the higher education sector in parallel with ongoing progress in primary and secondary education. Eighteen higher education institutions have reopened their doors and enrollment has jumped from 4,000 students in 2001 to 37,000 in the fall of 2004. As in primary education, the enrollment profile is skewed with approximately two-thirds of students in their first and second years. With students returning from Pakistan and other countries and the students graduating from high schools, demand for higher education is on the rise, not only in terms of enrollment but also in terms of relevance of curricula and quality of teaching. The Strengthening Higher Education Program aims to progressively restore basic operational performance at a group of core universities in Afghanistan, and to provide an institutional base for the development of an agenda focusing on tertiary education development, capacity building and reform. The program is envisaged as the first-phase of a long-term higher education development program in Afghanistan. In addition, it will act as a catalyst to attract various resources to the Afghan tertiary education sector with a long-term development framework. The program also facilitates and finances partnership program agreements for Kabul Polytechnic University, Kabul University, and four regional universities (Balkh, Herat, Kandahar and Nangarhar) with established foreign universities. ?Rebuilding higher education is a pressing and critical need for Afghanistan, particularly at this time, when there is an urgent need for skilled professionals and capable leadership in all sectors of the economy,?says Keiko Miwa, World Bank?s Education Specialist. ?We expect the program to improve the quality and relevance of higher education so that the students graduating from Afghan universities can become competent professionals and leaders, contributing to the needs of reconstruction, growth and poverty reduction in the country.? More than two decades of conflict combined with a lack of maintenance has resulted in the deterioration of large part of Afghanistan?s road network. This has meant that the road network has been rendered only partially usable with high transportation costs. Today, more than 50 percent of the main road network is in poor condition. The Emergency Transport Rehabilitation Project (ETRP), funded by a World Bank credit of US$108 million, approved in March 2003 aimed at restoring road and airport infrastructure in Afghanistan. Under this project, the government funded the rehabilitation of the Kabul Doshi, Pol-e-Khomri-Kunduz ? Shirkhan Bandar highway, including already completed work on the Salang tunnel; rehabilitation of Kabul International Airport including reconstruction of damaged runway pavement, provision of airfield ground lighting, and other related equipment to support safe airport operations; and rehabilitation of secondary roads. The supplemental grant of US$45 million for the Emergency Transport Rehabilitation Project approved today, will increment the project budget for Kunduz ? Taloqan ? Kishem road rehabilitation, and other components for satisfactory completion of the project. The project is expected to be completed by the Ministry of Public Works and Ministry of Transport by June 2007. ?For Afghanistan, not as a land locked country - but rather as a country that provides a land bridge, it is crucial to remove key transport bottlenecks to facilitate regional trade, the delivery of humanitarian aid, and deliver reconstruction and development efforts in all sectors,? says Alastair J. Mckechnie, World Bank Country Director for Afghanistan. ?The Government's ambitious plans set out during the recent Afghanistan Development Forum clearly indicate that growth in will very much depend on regional economic integration.? The total cost of the ETRP is estimated to be around US$147 million, with today?s approved IDA supplemental grant of US$45 million added to IDA?s original credit of US$108.
Price of Food Rises in Kabul Asia Pulse 20 May 2005 Prices of imported food items registered an increase while gold rates declined during the week in the local market, traders said on Thursday. A hike in transportation fares and a road blockade was cited as a major reason behind the surge in rates of foodstuffs imported from Pakistan, they argued. "Owners of trawlers and trucks jacked up transportation charges this week," one wholesaler said. Food supplies, delivered here via Sarobi where road construction is underway, are now routed to Kabul through the mountain Lata Band Road. "The alternative route is not only longer, but also bumpy and unpaved," transporters said. Mohammad Nasim, a shopkeeper on the Asmai Road, told Pajhwok Afghan News the shipment cost differential was caused by the time-consuming diversion drivers took due to the construction of the main highway. "Since the road-building work began, goods shipment charges have jumped up by more than 100 per cent, more so this week," he pointed out, hoping the freight costs would slip back once the main highway was constructed. During the week, the price of a 50-kilo rice bag rose by 50 Afghanis from 1550 Afs and a 50-kilo sugar bag sold for 1150 Afs compared to 1100 Afs last week. Similarly, the rates of other daily-use items such as wheat flour, tea and cooking oils also soared considerably - to the chagrin of consumers. Gas and fuel prices in Kabul market, however, remained unchanged - respectively costing 32 Afs per kilo and 26 Afs a liter as gold trended downwards owing to skittish international market behavior. Despite the central bank's sale of the greenback in the money market, the local currency slumped in value. Last week, one US dollar accounted for 49.85 Afs. But the worth of one American legal tender - selling for 50.15 Afs - witnessed an increase against the local currency this week. Haji Mohammad Rafi Azimi, president of the money-changers' association, had said on May 16 the central bank planned to float US$10 million in the open market. However, money-changers in the open market showed no enthusiasm for bulk purchase and bought only $7.50 million due to the higher bank price. "As the dollar sale by the central bank remained limited, there was a glut of the afghani in the open market and hence a fall in its value during the outgoing week," Azimi contended.
Pakistan in slumber as others grabs Afghan business Daily Times 21 May 05 By: Hamid Waleed LAHORE: The inactive Afghanistan Reconstruction Cell in the Ministry of Commerce has put the public and private sectors poles apart and no consolidated effort is being made to grab construction opportunities in the war-torn Afghanistan. According to sources, no meeting of the cell has taken place over the last two years simply because of bureaucratic approach of the officials concerned of the Ministry of Commerce and Planning Commission. The Ministry of Commerce had set up the cell in the end of 2001 to tap opportunities arising out of the reconstruction of Afghanistan amid heavy funding from the international community. Prime Minister Shaukat Aziz, who was then finance minister of the country, had made series statements regarding benefits coming out of the reconstruction work in Afghanistan. However, a delay in the transferring of funds put the public and private sectors? spirit on the backburner and no sincere effort was made to revive it with the start of construction work in Afghanistan. ?It is because of the inactive Afghanistan Reconstruction Cell that the presence of Pakistani construction companies is negligible compared to India and Turkey,? said Tauqir Sultan Awan, member of the cell and the chairman of the Pakistan Afghanistan Forum. According to Mr. Awan, the number of Pakistani construction companies in Afghanistan is not more than three against 60 of Turkey and around 15 of India. It may be noted that Export Promotion Bureau officials, when contacted by the Daily Times, expressed their ignorance over the present status of the cell. ?The main contracts are being awarded to US and European firms and Pakistani firms are supposed to work as sub-contractors,? said Shuja-ud-Din, director-general of the EPB, Peshawar, who has also been heading the cell initially. However, he said, exports from Pakistan were about to cross $1 billion figure by the end of the current fiscal year and most of the finished products were being exported to Afghanistan, mainly because of high quality. But the private sector is of the view that the increase in Pakistani exports is also by default and it is not an outcome of serious efforts. They have also pointed out that most Pakistani firms, belonging to both manufacturing and construction sectors, are involved in leg pulling. ?Whosoever enters the Afghan market tries his level best to create problems for the newcomers,? said one contractor, adding: ?Most of the construction firms have been providing wrong information to the donor agencies against their rival Pakistani firms.?
MTCP Enhances Cooperation between Malaysia-Afghanistan KUALA LUMPUR, Fri, May. 20, 2005 (Bernama) The Yang di-Pertuan Agong, Tuanku Syed Sirajuddin Syed Putra Jamalullail, said Thursday that one of the ways to further enhance bilateral cooperation between Malaysia and Afghanistan is through the Malaysian Technical Cooperation Program (MTCP). He said the program had been specially designed to meet Afghanistan?s requirements. "We also hope that relations between Malaysia and the Islamic Republic of Afghanistan, namely in the field of trade, will be further strengthened in the years ahead and new areas of cooperation will be identified and explored, especially by the private sectors of our two countries," he said at the presentation of credentials by the Afghan ambassador to Malaysia, Mohammad Yunos Farman. Tuanku Syed Sirajuddin said that in facing the expanding challenges of a global political and economic climate, he hoped that Malaysia and Afghanistan would continue to work together to ensure the continued progress and prosperity of the two countries, His Majesty said. "We are confident that the existing excellent relations between our two countries will continue to flourish in the years ahead," he added. Said. Earlier, Mohammad Yunos, in his speech, said that Afghanistan needed support and assurance, in particular from Muslim countries. "We hope that you will continue your assistance in the future. It will be great confidence for the future of Afghanistan to see our two countries come closer together in a spirit of mutual cooperation," he said. He said the Afghan government was grateful for the support received, especially over the last three years, from the people and government of Malaysia. He said Afghanistan and Malaysia were both part of Asia, having common goals and interests, as members of the United Nations (UN), the Non-Aligned Movement (NAM), the Organization of the Islamic Conference (OIC) and Group 77."Our countries play distinguished roles in many international and regional organizations," he said.
New income tax law is in everyone's interest (The Kabul Times) May 19, 2005 The government's new income tax law is a welcome move, despite the negative public reaction to it. Experts say that the law is designed to meet today's needs, and that there was a need to improve the state's fiscal position to allow it to meet its obligations to the people of Afghanistan. The law envisages an income tax rate of 10 to 20 per cent. The reaction from merchants and private sector entrepreneurs has been hostile; they argue that such tax rates are not practicable under current economic conditions and are likely to impede private-sector activity. The government must not give ground on this, and should work to ensure that the law is put into practice, while speeding up the process of privatization.
Afghan bank in debt to Pakistan railways By: Wagma Saba Aamir PESHAWAR\KABUL, May 19 (Pajhwok Afghan News) -- Pakistan?s sate-run railway in the North West Frontier Province claim that one of Afghanistan?s sate-run banks has an overdue debt dating back to the Taliban regime. The railway corporation warned that unless the decade old debt of two million Pakistani Rupees ($34,000) is repaid, it would have to see the matter in a court of law. However, officials of the Afghan Pashtane bank in Peshawar say the money was charged during the Taliban time and that the current government couldn?t pay back that money. Eng Yaser Hammad, the director of the Pakistan Corporation in Peshawar told Pajhwok Afghan News that Afghanistan did not pay any transportation taxes for Afghan goods traveling through the port Karachi to Peshawar and the storage for decades. "If the bank doesn?t pay back it debts, regardless of whether the debt is from the Taliban era or any other government we will have to settle the matter in a court of law," he noted. But Samiullah Jabarkhail, the deputy bank manager of the Pashtane bank in Peshawar said: "We sent the railway an official letter on 9 February 2000, informing them that we were no longer responsible for the collection of taxes, but they still went ahead and charged us with the debt.? The Director of the Pashtane Tejarati Bank told Pajhwok that the tax levied from the Communists' and Taliban era was the responsibility of the Afghan government and the Pakistan railway corporation.
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