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Afghanistan’s Railways Authority reviewing operating contracts

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Afghanistan Railways Authority (ARA) officials have said that operating contracts with neighboring countries for Afghanistan’s railway stations were formalized without taking the country’s best interests into consideration.

According to officials, tens of millions of dollars has been paid annually to companies from neighboring countries to run the stations.

ARA’s new leadership is now however working on a plan to outsource the operation of railway stations to Afghan companies so that it can benefit the Afghan national economy directly.

Bakht-u-Rehman Sharafat, director of ARA, said an Uzbekistan company has the contract to operate the port of Hairatan at a cost of $18 million a year. However, local companies are prepared to do the same work for much less, he said.

“The port of Hairatan, through which we carry most of our shipments, has been contracted by an Uzbek company for $18 million a year, while Afghan companies will do this for less than 25 percent of this amount,” said Sharafat.

Afghanistan’s private sector has also called on the country’s railway authority to increase trade capacity at its ports.

Members of the private sector said the local economy will improve if railway services expand.

“If we can do our export by rail, it will be cheaper for us and with that we will be able to expand our exports and lower our prices,” said Abdul Jabar Safi, the director of the Afghanistan Industries Association.

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Afghanistan transports 3.2 million metric tons via railways this year: Ministry

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Mohammad Ashraf Haqshenas, spokesperson for the Ministry of Public Works, says since the beginning of this current solar year, about 3.2 million metric tons of commercial goods have been transported through the country’s railway lines.

Haqshenas stated that these exports have seen a significant increase compared to the same period last year, and the ministry is working to provide more facilities for the private sector in this area.

“Approximately 3.2 million metric tons of goods have been transported through four ports. The Ministry of Public Works is striving to provide greater convenience to national traders and citizens,” he said.

Meanwhile, officials from the Chamber of Commerce and Investment have stated that railway lines can play a vital role in the country’s economic development.

They added that in international trade, rail transport is cheaper than shipping, and this sector should be given serious attention in the country.

Economic experts also believe that the expansion of railways in the country can provide more convenience for traders in exports and imports.

Currently, Afghanistan has direct railway connections through four ports with Uzbekistan, Iran, and Turkmenistan, and indirect connections with China, Russia, Belarus, Kazakhstan, and Turkey.

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IEA signs $6.2 million marble mining contract for Kandahar

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Afghanistan’s Ministry of Mines and Petroleum says it has signed a contract worth $6.2 million with a Turkish company for the extraction of marble from a mine in Kandahar’s Dara-e-Noor area.

At a ceremony on Tuesday in Kabul, acting Minister of Mines and Petroleum Hidayatullah Badri said the extraction of this mine is expected to create new job opportunities for the country’s citizens.

Badri stated that since the Islamic Emirate’s takeover, several contracts have been signed for marble extraction.

“The contracted company is investing $6.2 million in the exploration, extraction, and processing of this mine,” Badri added.

Meanwhile, a senior official from the mining company stated that this contract will benefit both countries.

He said the company hopes to supply the international market with the marble. He said this will not only create jobs but also contribute to the growth of Afghanistan’s export market.

Mr Emioglu, the deputy head of the Turkish contracting company, said: “Our company started working on extracting this mine eight months ago. We aim to introduce Afghan marble internationally after production and processing so that both countries can benefit.”

Economists welcomed the development and stated that with the signing of mining contracts, the country’s economic situation will improve, and investments in this sector will increase.

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Pakistan’s exports to Afghanistan rise by 92% to $504 million

Afghanistan’s exports to Pakistan from July to December 2024 totaled $9.9 million against $4.425 million for the same period in 2023

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Pakistan recorded a substantial increase of 92% in it’s export of goods and services to Afghanistan during the first six months of Islamabad’s current fiscal year as compared to the exports of the corresponding period of last year.

According to the State Bank of Pakistan (SBP), the overall exports to Afghanistan were recorded at $504.308 million during July-December (2024-25) against exports of $262.583 million during July-December (2023-24), SBP stated. 

Overall Pakistan’s exports to other countries witnessed an increase of 7 percent in the first six months, from $15.146 billion to $16.229 billion, the SBP stated.

 On the other hand, Afghanistan’s exports to Pakistan in the same period totaled $9.9 million against $4.425 million in 2023.

On a year-on-year basis, imports from Afghanistan witnessed an increase of 18 percent from $1.238 million in December 2023, against the imports of $1.466 million in December 2024. 

On a month-on-month basis, the imports from Afghanistan into the country also witnessed an increase of 8.27 percent during December 2024, as compared to the imports of $1.354 million during November 2024.

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