Business
Hundreds of factories face uncertain future amid ongoing economic crisis
Afghan businessmen on Thursday warned that hundreds of factories will be forced to close down if the US and the international community continue to impose economic sanctions against Afghanistan.
These sanctions include the freezing of over $9 billion in foreign reserves, by the US Treasury and the International Monetary Fund (IMF), four months ago.
Businessmen said their biggest problem is their inability to buy raw materials.
“We can’t tolerate the situation; the world is being cruel to Afghans. We will lodge complaints to the UN for our rights to be upheld,” said Sherbaz Kaminzada, head of the Chamber of Mines and Industries.
Businessmen also said that of the $9 billion in frozen foreign reserves, $2,5 billion of that is private sector money. They also blamed the international community for the current crisis in Afghanistan.
“We and the people of Afghanistan know who created problems, and want them to resolve the problems themselves,” said Sakhi Ahmad Paiman, deputy head of the Chamber of Mines and Industries.
Officials from logistics companies said that national and international organizations owe the sector billions of dollars.
“We served Afghanistan and provided services, our payments are outstanding because foreign reserves have been frozen. We hope that the money will be released soon,” said one logistics company employee, Mohammad Baz Ghairat.
Islamic Emirate of Afghanistan (IEA) officials said the international community is to blame for the economic crisis in the country.
“We called on the international community many times, but they have blocked Afghanistan’s assets; Afghans need it now," said Inamullah Samangani, deputy spokesman for the IEA, adding that they are being blamed for something the US created.
Economic analysts on the other hand said that the US should release Afghanistan’s assets and provide opportunities for Afghan businessmen.
“We see problems growing day by day, the international community is the cause of this. They imposed sanctions against Afghanistan’s economic mechanism; they are responsible,” said Sayed Azim Mangal, an analyst.
Businessmen said if the sanctions are not lifted soon, they will appeal to the international courts to resolve the problem.
Business
China’s first railway consignment arrives in Afghanistan via Iran
China's first railway transit consignment to Afghanistan via Iran, carrying 1,000 tons of iron coil, arrived at Roznak station in Herat province, the Ministry of Public Works said on Friday.
The consignment, which started its journey from China, arrived in Afghanistan via Iran's railway network, Public Works Ministry spokesman Mohammad Ashraf Haqshenas said in a statement.
"The transportation of cargo through this route is an important step in the development of Afghanistan's transit links and connection to open waters and represents progress in the field of regional transport and transit," he said.
Haqshenas added that the completion of the Khaf-Herat railway would offer new potentials for Afghanistan's economy and create a good platform for expanding trade and transit in the region.
Business
Russia is using bitcoin in foreign trade, finance minister says
This year, Russia permitted the use of cryptocurrencies in foreign trade and has taken steps to make it legal to mine cryptocurrencies, including bitcoin.
Russian companies have begun using bitcoin and other digital currencies in international payments following legislative changes that allowed such use in order to counter Western sanctions, Finance Minister Anton Siluanov said on Wednesday.
Sanctions have complicated Russia's trade with its major partners such as China or Turkey, as local banks are extremely cautious with Russia-related transactions to avoid scrutiny from Western regulators, Reuters reported.
This year, Russia permitted the use of cryptocurrencies in foreign trade and has taken steps to make it legal to mine cryptocurrencies, including bitcoin. Russia is one of the global leaders in bitcoin mining.
"As part of the experimental regime, it is possible to use bitcoins, which we had mined here in Russia (in foreign trade transactions)," Siluanov told Russia 24 television channel.
"Such transactions are already occurring. We believe they should be expanded and developed further. I am confident this will happen next year," he said, adding that international payments in digital currencies represent the future.
Earlier this month, President Vladimir Putin said that the current U.S. administration was undermining the role of the U.S dollar as the reserve currency by using it for political purposes, forcing many countries to turn to alternative assets, Reuters reported.
He singled out bitcoin as an example of such assets, saying that no-one in the world could regulate bitcoin. Putin's remarks indicated that the Russian leader backs the extensive use of cryptocurrencies.
Business
Shoemaking industry in Takhar province facing stagnation
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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