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MPs warn of serious development budget embezzlement

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Members of the Wolesi Jirga (Lower House of Parliament) warned on Monday that millions of dollars earmarked for development projects in Afghanistan could be embezzled and sent out of the country by officials after the ministry of finance ordered that all development projects be put on hold.

The minister said however that it has called for projects to be prioritized as its dealing with a budget deficit.

“The Finance Ministry has told all other ministries that no projects can be implemented without the approval of the (finance) ministry,” said MP Makhdom Abdullah Mohammadi. He also said the signature of the Acting Finance Minister carries no weight.

Parliament approved the budget for the new fiscal year, 1400, in February following tension between government and the Wolesi Jirga over the document.

The estimated budget for the current year is over 473 billion AFN (nearly $6 billion), including 311 billion AFN ($4 billion) for the regular budget and 162 billion AFN ($2 billion) for the development budget.

Some MPs said money is already being embezzled.

"A clear looting [of government revenue] is underway; the budget is being looted before the eyes of millions of people,” MP Ghulam Husain Naseri said.

Another MP, Allah Gul Mujahed, meanwhile, stated: “We passed the year 1400 budget but projects for the year 1399 (2020) have been postponed to the year 1400 and the Acting Minister of Finance has told the Ministry of Public Works to stop working on development projects. They may want to transfer money [outside Afghanistan].”

The Ministry of Finance, however, stated that the organization has faced a budget deficit.

“We have faced a deficit in the budget; therefore, an official letter has been issued [to the ministries] to create a financial discipline and prioritize national projects and effectively use the national budget," said Rafi Tabe head of Finance Ministry’s media office.

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Shoemaking industry in Takhar province facing stagnation

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A number of shoemakers in northern Takhar province say that while their handmade shoes are of better quality than imported shoes, but still sales are down.

According to them, there were more than 20 shoe-making shops in the past, but now some have been closed due to the decline in sales.

The shoemakers make most of their shoes from leather. A number of industrialists say that this industry is now facing stagnation.

Abdul Raqib, a shoemaking factor owner, said: “The government should support us. Currently, we import soles. It can be made with good quality in Afghanistan, and we could even compete against Turkish shoes.”

Meraj, another shoemaking factory owner, said: “Shoe sales were higher in the republic era. There were military shoes. Sales have declined now, but we still thank Allah.”

Shoemakers make these shoes with basic tools and by hand, with 5 to 8 people working in each shop.

Javed, a shoemaker, said: “Our sales are not so good. We can make any type of shoe or slipper. We want the government to support us.”

A number of Takhar residents say that domestically produced shoes are of high quality and with lower price compared to imported shoes, so people prefer domestic products to foreign products.

Mir Ata, a resident of Takhar, said: “We are very happy about domestic shoes. People should buy it. They are of good quality.”

However, the officials of Takhar Industry and Commerce Department say that they are committed to support the industrialists.

Abdul Rahman Ghaznawi, provincial director of industry and commerce, said: “People prefer domestic shoes and slippers. Takhar’s products are sold in Kunduz, Baghlan and Badakhshan as well.”

Meanwhile, industrialists say that if the government supports them, they will be able to make the best products and can be more competitive.

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Daily truck clearances at Torkham drop from 400-500 to 5-10

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Pakistan’s Sarhad Chamber of Commerce and Industry (SCCI) has said that daily truck clearances at Torkham crossing have declined from 400-500 to 5-10.

SCCI President Fazal Muqeem Khan said this at the signing ceremony of a memorandum of understanding (MoU) with the Pakistan-Afghanistan Joint Chamber of Commerce and Industry to promote bilateral trade and cooperation.

He said the volume of trade between Pakistan and Afghanistan had fallen from $3 billion to $1 billion annually.

Fazal Muqeem also highlighted the adverse impact of the 2% Infrastructure Development Cess (IDC) imposed by the Khyber-Pakhtunkhwa government on trade and transit.

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Turkish scholars, charity officials assess investment prospects in Afghanistan

Officials pledged to encourage Turkish investors to explore and capitalize on investment opportunities in Afghanistan

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Afghanistan’s Acting Minister of Energy and Water, Mullah Abdul Latif Mansoor, met with a delegation of Turkish scholars and officials from the Adif Charity Foundation on Tuesday to discuss various political, religious, and social issues.

According to the Ministry of Energy and Water, Mullah Mansoor praised Adif’s humanitarian efforts in Afghanistan and highlighted the country’s ample resources for energy production.

He emphasized that Afghanistan currently offers a favorable environment for investment in all sectors, assuring the Turkish delegation of the Islamic Emirate’s commitment to ensuring the safety and security of investors and their assets.

In response, Adif officials pledged to encourage Turkish investors to explore and capitalize on investment opportunities in Afghanistan, signaling a potential boost in economic and developmental cooperation between the two nations.

 

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