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European Union Announces Financial Assistance to Support Reforms in Afghanistan

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(Last Updated On: October 24, 2022)

555The European Commission has published a press release stating that The European Commission announced new financial assistance to the Afghan Government in the form of a State-building contract in Brussels conference on Tuesday. Through State-building contracts, the European Union provides direct budget support to countries in fragile and transitional situations.

The signing ceremony of the State-building contract took place today at the margins of the Brussels Conference on Afghanistan. The agreement was signed by the Commissioner for International Cooperation and Development, Neven Mimica, and the Afghan Minister of Finance, Eklil Ahmad Hakimi in the presence of President Ashraf Ghani.

At the signing ceremony, Commissioner for International Cooperation and Development, Neven Mimica, said: “Today’s signature is an important step forward for the EU’s development partnership with the Afghan Government. The EU is committed to increasing the effectiveness of our aid, as a sign of our confidence in the Afghan side to deliver on its reform program. As the State-building contract is indeed a contract, both sides agree to play their part. We will provide the funding on the basis of satisfactory progress in key reform areas.”

The Minister of Finance of Afghanistan, Eklil Ahmad Hakimi, said: “The State Building Contract is an effective mechanism that aligns EU’s development assistance with the Afghanistan’s reform agenda. As an on-budget funding, it gives the Government of Afghanistan the required fiscal space to implement its development priorities that will improve the lives of the Afghan people.”

This first State-building contract for Afghanistan will provide up to €200 million in direct budget support over a two-year period from 2017 onwards. It will assist the Government of Afghanistan in defining its own strategic development priorities and policies, as outlined in the new Afghanistan National Peace and Development Framework. The Afghanistan National Peace and Development Framework will be presented at the main event of the Brussels Conference on Afghanistan. It will provide a credible strategic framework for Afghanistan’s development towards increasing self-reliance. The State-building contract will support more effective budgetary management and the fight against corruption.

A robust policy dialogue on reform progress in public policies, the macroeconomic framework, public financial management, as well as on transparency and oversight, will be put in place with the Afghan Government and determine the payments under this contract. The EU will closely coordinate with other partners and disburse when specific reform targets are reached.

The European Union aims to deliver assistance in an effective and flexible way by making use of partner countries’ systems.

For the period 2014-2016, the EU strategy for Afghanistan pursued four overall objectives: promoting peace, stability and security in the region; reinforcing democracy; encouraging economic and human development; and fostering the rule of law and respect for human rights.

The current EU development assistance program (also known as the Multi-annual Indicative program) for the period 2014 – 2020 has four focal areas: agriculture and rural development; health; rule of law and policing; as well as governance and democratization. The EU’s financial support amounts to €200 million per year, or €1.4 billion for the whole period. The State-building contract is part of the current development program.

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Pakistan’s commerce delegation wraps up ‘successful’ trip to Kabul

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(Last Updated On: March 28, 2024)

Pakistan’s Charge d’Affaires for Afghanistan, Ubaid-ur-Rehman Nizamani said in a video message on Wednesday that the recent talks between Islamabad’s commerce delegation and Afghan officials had been “successful” and that he hoped this would give fresh impetus to bilateral trade between the two countries.

“I’m happy to report that this was a successful visit and both sides have agreed to work together for mutual benefit on a number of areas.

“They will facilitate transit, they will facilitate bilateral trade and they will take all possible measures that create an environment for continuous and productive trade and economic relations between the two countries,” he said.

The delegation, led by Commerce Ministry Secretary Khurram Agha, arrived in Kabul on Monday and had numerous talks on various issues with Islamic Emirate officials.

The visit came amid deteriorating bilateral relations following several suicide attacks in Pakistan in the last couple of months that Islamabad attributes to the Tehreek-e-Taliban Pakistan (TTP) militants, a group they claim is based in Afghanistan.

Diplomatic tensions between the two countries over the last few months have led to economic losses, as key border crossings for trade and travel have closed intermittently, resulting in goods trucks being held up at border posts.

Afghanistan’s Minister for Industry and Commerce Nurudin Azizi meanwhile said the IEA had held fruitful negotiations in a cordial environment with the visiting delegation.

“We discussed in detail with the Pakistani side specific issues related to heavy transport vehicles that will be resolved,” he said.

“We will achieve positive results as our discussions remained productive.”

Azizi said Afghanistan expected to sign a formal agreement with Pakistan within six months, allowing Pakistani trucks to enter Afghanistan and travel to the Central Asian states and Afghan trucks to go all the way to the Pakistani port cities of Karachi and Gwadar.

Apart from discussing trade-related issues, the two sides also focused on movement of passengers, patients and businesspeople across their common border during these talks.

Azizi noted uninterrupted trade and business between Kabul and Islamabad would play a significant role in creating a peaceful environment between the two countries and facilitate their economic development.

He said the two sides also pledged to enhance their existing trade volume, adding that both countries could become ideal markets for each other if they did not allow business to be affected by any geopolitical tensions.

Azizi also said Afghanistan could export agricultural products to China and other countries via Pakistan’s ports and cities.

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Turkey’s 77 keen to start up cement plant in Jawzjan

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(Last Updated On: March 27, 2024)

Turkish construction company 77 officials have met with the acting minister of mines and petroleum, Shahabuddin Delawar, about investing in a cement factory in Yatim Taq area of Jawzjan province.

The minister, Shahabuddin Dalawar, has said the ministry will cooperate with the company but first needs a proposal, including details around how they plan to implement the project as well as social development plans.

Turkey’s 77 company has been working on electricity generation projects in Afghanistan for several years.

A number of industrialists say that if more investment is made in the cement production sector, not only will domestic demand be met, but the country’s cement will also be exported.

At the moment, cement is being produced by private companies in the provinces of Kandahar, Parwan and Herat.

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Pakistan delegation discusses solutions with Azizi to resolve trade issues

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(Last Updated On: March 26, 2024)

Officials of the Afghan Ministry of Commerce and Industry on Tuesday held a meeting with the visiting delegation of Pakistan’s Ministry of Commerce where they discussed challenges around trade relations between the two countries.

The Acting Minister of Commerce and Industry Nooruddin Azizi said due to recent political tensions, trade and transit relations between Afghanistan and Pakistan have faced problems. He said efforts are being made to find solutions to the existing problems and to distance political issues from trade issues.

The visiting delegation is in Kabul at the invitation of the ministry of commerce and industry.

Azizi said the Pakistani delegation said at the meeting that all commercial, transit and economic issues between the two countries will be discussed and efforts will be made to keep trade issues separate from political issues.

“We want to talk about issues that are especially in the field of trade and transit, and we want to prioritize all issues related to trade, we are trying to separate trade and transit from political issues,” said Azizi.

He also expressed hope that his meeting with the Pakistani delegation will help solve the existing challenges and improve and expand trade and transit relations between the two countries.

According to economic experts, since Afghanistan is a transit route between Central Asia and South Asia, the Islamic Emirate can use it to pressurize Pakistan so as not to create trade problems.

“Pressure should be put on Pakistan with the same means we have so that the agreement signed between us and Pakistan and they are forced to comply. We must use this agreement and use it correctly and we should be emotional and not say hostile words, but we want our right,” said Seyed Masoud, an economic expert.

Officials from the ministry also said that talks were held on other issues, including implementing the PTA preferential trade agreement or TAD, finalizing negotiations about APPTA, determining the date of air transit, 24-hour operations in the ports of Torkham, Chaman, and Spin Boldak.

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