Islamic Emirate at a Glance

(Part 14)

Summary of the Most Significant Accomplishments of the Islamic Emirate

(2022 – 2023)

By: H.N

Increase in Commercial Goods Transfer

Sustained collaboration between Afghanistan Railway Authority and ports, recruitment of skilled professionals, and systematic oversight by governing officials have precipitated a remarkable upsurge in commercial goods transfers compared to the preceding fiscal year. Notably, the cumulative volume of commercial goods transfers across all Afghan railway routes surged to 4.5 million metric tons during the past year, representing a substantial 25% escalation over the previous period’s total of 3.4 million metric tons.

A: Commencement of Commercial Goods Transfers via the Khawaf-Herat Railway Segment

The formal inauguration of commercial goods transfers between Afghanistan and Iran through the Khawaf-Herat railway in July, 2023, catalyzed an augmentation in such transactions, yielding heightened revenues and fostering employment opportunities for local citizens.

B: 70% Discount on the Commercial Goods Transfer Agreement for the Hairatan-Mazar-i-Sharif Railway Project

The contractual arrangement for commercial capital transfers associated with the Hairatan-Mazar-i-Sharif railway project, executed 12-year ago with Sogdiana Trans of Uzbekistan, witnessed a paradigm shift. In contrast to the prior annual disbursements ranging from $18 to $32 million, the recent renegotiation under the current Islamic Emirate regime resulted in a significantly reduced payment of $3.7 million.

Furthermore, the contractual shift entailed the transfer of railway management responsibilities to the Afghanistan Railway Authority, with the contracting entity now exclusively providing requisite services.

C: Acquisition of the Inaugural Railway Conveyance (Drezine)

In a momentous milestone spanning a century, the Afghanistan Railway Authority procured a Drezine—a specialized rail transport vehicle—from Iran. This acquisition is instrumental in railway maintenance, infrastructure monitoring, and logistical support for technical personnel within the Khawaf-Herat railway project. Leveraging this railway conveyance ensures cost-efficient operations and upholds stringent quality standards in railway upkeep.

D: Afghan Trans Project

The Afghan Trans initiative, a collaborative endeavor linking neighboring nations and interconnecting Central Asian territories with South Asian counterparts via Afghanistan, stands as a pivotal infrastructure undertaking. Its inaugural phase, launched during the incumbent Islamic Emirate’s tenure, has seen robust progress. Technical teams from Afghan, Uzbek, and Pakistani railway authorities have diligently commenced preliminary groundwork within Afghan territory, culminating in successful milestones. Additionally, a joint office established in Tashkent over the past year further bolsters project management efficacy, with the inception of supplementary offices in Kabul and Islamabad poised to streamline operational efficiencies.

Enhanced Afghanistan’s Exports

In pursuit of heightened exports and transit facilitation, market regulation, trade balance optimization, and proactive trade diplomacy have been calibrated to regional standards. Deliberations with neighboring nations and extending beyond, encompassing Iran, Pakistan, Russia, Uzbekistan, China, Kazakhstan, and Turkmenistan, have yielded a notable surge in Afghanistan’s export volume, nearing approximately $2 billion USD.

The upswing in transit via Afghanistan from Central Asian territories to South Asia, reactivation of commercial attaché offices, resolution of Afghan traders’ challenges in neighboring realms, seamless coordination, and bolstering of bilateral collaborations in commercial and transit goods transfers, operationalization of a consolidated hub for export documentation across national zones, and strategic prioritization of swift customs processing for Afghanistan’s export goods stand as pivotal accomplishments in Afghanistan’s commercial landscape. These endeavors have fostered heightened trade engagements between Afghanistan and its contiguous as well as regional counterparts.

Growth in the Industrial Sector

The ascendancy of the domestic industrial sector stands as a paramount directive for the Islamic Emirate, underscored by the reduction of industrialists’ surplus profits from 4% to 2% and a 7% exemption from pertinent industrial levies, aimed at fostering and fortifying the national industrial fabric.

Moreover, a campaign promoting domestic product utilization has been enacted, complemented by protective import tariffs on raw materials and machinery. Consequently, the heightened emphasis on industrial expansion has heralded the establishment of 50 novel factories in the past fiscal year, with 80% of extant factories resuming operations.

Continued…

 

Reference: IEA’s Accomplishments