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Pakistan Airlines suspends Afghan operations citing IEA interference

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(Last Updated On: October 15, 2021)

Pakistan International Airlines (PIA) suspended flights to the Afghan capital, Kabul, on Thursday after what it called heavy handed interference by Islamic Emirate of Afghanistan (IEA) authorities.

The suspension took place after the IEA government ordered the airline, the only international company operating regularly out of Kabul, to cut ticket prices to levels seen before the fall of the Western-backed Afghan government in August.

“We are suspending our flight operations to Kabul from today because of the heavy handedness of the authorities,” a spokesman told Reuters.

Earlier, the IEA warned PIA and Afghan carrier Kam Air that their Afghan operations risked being blocked unless they agreed to cut ticket prices, which have spiralled to levels out of reach for most Afghans.

With most airlines no longer flying to Afghanistan, tickets for flights to the Pakistani capital, Islamabad, have been selling for as much as $2,500 on PIA, according to travel agents in Kabul, compared with $120-$150 before.

The Afghan transport ministry said in a statement prices on the route should “be adjusted to correspond with the conditions of a ticket before the victory of the Islamic Emirate” or the flights would be stopped.

It urged passengers and others to report any violations.

PIA, which runs chartered flights to Kabul rather than regular commercial services, said it had maintained the flights on “humanitarian grounds” and faced insurance premiums of as much as $400,000 per flight, Reuters reported.

“The insurance premiums on these flights are so high that it is simply impossible to operate scheduled flights to Kabul, as it is still considered a war zone by aircraft insurance companies and lessors,” the company said in a statement.

No comment was immediately available from Kam Air.

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Saffron producers appeal for global exports to resume

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(Last Updated On: October 23, 2021)

Afghanistan’s Saffron Producers Union on Saturday called on the Islamic Emirate of Afghanistan (IEA) to help restart the saffron production and export sector, which came to a grinding halt due to the coronavirus pandemic and the change in government.

Officials from the union said that unless something is done to restart business, the saffron industry could collapse.

They said that now, without commercial cargo flights into Afghanistan, their international market flow has dried up.

“We had products, but stopped because of COVID-19. Our products and exports have been stopped. If there is no [export] corridor for us saffron production will be stopped,” said Abdul Basir Azimi, an exporter of saffron.

Officials of the Chamber of Agriculture and Livestock meanwhile called on the Islamic Emirate of Afghanistan (IEA) to find a market for domestic products.

“Our saffron was ranked number one in the world several times, but now faces problems. Export environment should be provided for saffron,” said Mirwais Hajizada, deputy head of the chamber.

Economic analysts meanwhile urged the Ministry of Agriculture, Irrigation and Livestock (MAIL)

to support the export of domestic products.

“We have seen that some of our products have a special place in global markets, and have many customers in the world. Now the market for products has disappeared. The basic problems should be solved,” said Saeed-ur-Rahman Imran, an economic analyst.

Afghanistan’s saffron is a valuable revenue generator for the country and the industry employs hundreds of thousands of workers directly and indirectly.

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Rising wood prices a cause for concern in Kabul as winter looms

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(Last Updated On: October 21, 2021)

Kabul residents on Thursday raised concerns about rising prices of heating materials as people started shopping to prepare for winter.

During the winter, Afghan families typically keep warm by using a wood-burning bukhari, a drum-shaped stove made of thin metal, or a pit of burning coal under a small table covered by a heavy blanket.

Kabul resident Abdul Khaleq Hashemi urged the new Islamic Emirate of Afghanistan (IEA) government to bring prices under control.

“The flour, rice, and oil taxes are in the control of the Taliban (IEA) and they should all have a certain fixed price. Same for wood, it should have a certain fixed price, and this issue should be brought under control. It is not right for everyone to sell wood at any price they want,” he said.

Facing an economic crisis as winter approaches, IEA officials appealed to the international community to release frozen assets of more than $9 billion and increase shipments of humanitarian relief as the nation faces an economic crisis.

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IEA won’t be allowed access to Afghan central bank reserves: US

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(Last Updated On: October 20, 2021)

Deputy U.S. Treasury Secretary Wally Adeyemo on Tuesday said he sees no situation where the Islamic Emirate of Afghanistan (IEA) who regained power in Afghanistan in August, would be allowed access to Afghan central bank reserves, which are largely held in the United States.

The IEA have called for the United States to lift a block on more than $9 billion of Afghan central bank reserves held outside the country as the government struggles to contain a deepening economic crisis.

“We believe that it’s essential that we maintain our sanctions against the Taliban (IEA) but at the same time find ways for legitimate humanitarian assistance to get to the Afghan people. That’s exactly what we’re doing,” Adeyemo told the Senate Banking Committee.

The IEA took back power in Afghanistan in August after the United States pulled out its troops, almost 20 years after the IEA were ousted by U.S.-led forces following the Sept. 11, 2001, attacks on the United States.

Washington and other Western countries are grappling with difficult choices as a severe humanitarian crisis looms large in Afghanistan. They are trying to work out how to engage with the IEA without granting them the legitimacy they seek, while ensuring humanitarian aid flows into the country.

“Our goal is to make sure that we are implementing our sanctions regime against the Taliban (IEA) and the Haqqani network, but at the same time allowing for the permissible flow of humanitarian assistance into the country,” Adeyemo said.

The Haqqani network is a group affiliated with the IEA based near the border with Pakistan and blamed for some of the worst suicide attacks of the war.

Adeyemo said the Treasury was taking every step it could within its sanctions regime to make clear to humanitarian groups that Washington wants to facilitate the flow of aid to the Afghan people, but warned that for humanitarian assistance to flow, the IEA have to allow it to happen within the country.

The Treasury last month further paved the way for aid to flow to Afghanistan despite U.S. sanctions on the IEA when it issued two general licenses.

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