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Taliban Again Raise Coal Prices Amid Booming Exports to Pakistan

16th July, 2022 · admin

Ayaz Gul
VOA News
July 16, 2022

ISLAMABAD — Afghanistan’s cash-strapped Taliban government has tripled prices for coal in less than a month to raise revenue from its mining sector amid a lack of direct foreign funding and booming coal exports to neighboring Pakistan.

The spokesman for the Ministry of Mines and Petroleum in Kabul, Esmatullah Burhan, on Saturday told VOA that each ton of coal is priced at $280.

On June 28, the Taliban-led Finance Ministry raised coal prices to $200 per ton from $90 per ton. Customs duties also were raised by 10 percent, totaling 30% on each ton, although Afghan coal is still comparatively cheap — about 40% of the international market value.

Burhan said Afghanistan is exporting about 10,000 tons of coal a day to Pakistan. He asserted that the government is selling coal to private Afghan traders in local currency (known as Afghani) and they are then exporting it, primarily to the neighboring country.

He told VOA that out of Afghanistan’s 80 coal mines, 17 are currently in use.

The repeated Afghan coal price hikes came just after Pakistani Prime Minister Shehbaz Sharif announced plans last month to increase coal imports from Afghanistan using local currency, as opposed to dollars, to save foreign reserves.

Officials in Kabul insist that coal prices have been revised after studying regional markets and rising global prices in the wake of the war in Ukraine to ensure Afghan traders could receive as much revenue as possible and prevent Pakistani importers from switching to other options.

Sharif told a recent cabinet meeting that importing Afghan coal could help Islamabad save more than $2.2 billion annually. His decision comes against a backdrop of rising coal prices on the international market in the wake of Russia’s invasion of Ukraine.

Pakistan, which reportedly imported 70% of its thermal coal from South Africa to run its cement, steel and Chinese-built power plants, is facing an energy crisis. South African coal prices have increased in recent weeks because of higher demand from Europe.

The shortages have forced coal-based facilities in Pakistan to either operate at significantly reduced capacities or to shut down plants temporarily.

Customs duties from coal exported to Pakistan are a key source of revenue for the Taliban. The Islamist group reclaimed control of Afghanistan nearly a year ago, but sanctions on the Afghan banking sector and the suspension of foreign financial aid have severely hampered the war-torn country’s economy.

No country has formally recognized the Taliban government, citing concerns over human rights of Afghans, particularly restrictions placed on women’s rights to work and education.

Islamabad already has eased the visa regime for Afghan nationals and removed duties on all imports from Afghanistan to help facilitate bilateral trade.

Additionally, Taliban authorities, in collaboration with Pakistani counterparts, are said to be working to smooth the transportation of coal exports at border crossings between the two countries.

Hundreds of trucks carrying coal pass daily through three dedicated border crossings, and both sides are planning to add more space for additional trucks and open customs facilities for longer durations per day, instead of 12 hours currently.

A high-level Pakistani delegation, led by top commerce ministry officials, will travel to Afghanistan Sunday to further the discussions. Pakistani officials said Islamabad would discuss the pricing issue, as well as propose to keep border terminals open 24 hours for coal imports and infrastructure-related improvements on the Afghan side.

Posted in Economic News, Pakistan-Afghanistan Relations, Taliban | Tags: Coal Mining in Afghanistan, Taliban looting resources |

Taliban Suffers Significant Losses in Andrab: Sources

16th July, 2022 · admin

8am: Sources in the Andrab valley of Baghlan province say that a fierce war is raging on between the National Resistance Front (NRF) and Taliban. Sources told Hasht-e Subh that intense fighting in Qasan Valley, Andrab, started at ten o’clock today (Saturday, July 16th) and continues to rage until now. Click here to read more (external link).

Related

  • Three Taliban Fighters Killed by NRF Forces in Baghlan
  • 12 Taliban Members Killed by NRF Forces As War Escalates in Panjshir
  • Taliban Resumes Attacks on NRF Bases in Shutal District, Panjshir
Posted in NRF - National Resistance Front, Security, Taliban | Tags: Afghan resistance against Taliban, Baghlan, Panjshir |

It is not in US interest for Afghanistan to be a failed state: Khalilzad

16th July, 2022 · admin

Zalmay Khalilzad

Ariana: In a discussion released on Saturday by US-based investment bank and financial services company Goldman Sachs, Khalilzad said that parts of the US deal with the Islamic Emirate of Afghanistan (IEA) have not been implemented. “Parts of it were implemented, parts are not,” Khalilzad said. “We need to go back and tell the Talibs (IEA) let’s finish the unfinished business.” Click here to read more (external link).

Related

  • Biden, Mohammed Bin Salman Discuss Afghanistan: Statement
Posted in Taliban, US-Afghanistan Relations | Tags: Secretly funding Taliban, West supporting Taliban, Zalmay Khalilzad |

Cash-Strapped Taliban ‘Exploiting’ Afghanistan’s Natural Resources To Boost Revenue

16th July, 2022 · admin

Abubakar Siddique
Radio Free Europe/Radio Liberty
July 15, 2022

Cash-strapped and cut off from international aid, the Taliban-led government is tapping into Afghanistan’s natural resources to boost revenue.

Since the Taliban toppled the Western-backed government in Kabul and seized power in August 2021, the export of and custom duties from coal have become a key source of revenue for the militant group.

Afghanistan has significant deposits of coal. Out of the country’s 80 coal mines, 17 are operational, with most located in central and northern Afghanistan. Much of the coal is being trucked to neighboring Pakistan, which is facing a severe energy crisis.

But exports have hit snags recently after the Taliban hiked prices, in a move that has put off importers. Competing claims over coal mines has also triggered Taliban infighting.

‘Desperate Need To Raise Funds’

Foreign trade has fallen off dramatically since the Taliban seized power, and the international assistance that once propped up the Afghan economy has evaporated, leaving the Taliban to fund its government on its own. No country has recognized the Taliban-led government, which has been hit by international sanctions.

The Taliban has relied heavily on tax collection and the increased export of valuable natural resources like coal to generate revenue.

In May, the militants increased coal exports to Pakistan, aiming to generate more revenue from Afghanistan’s mining sector and capitalize on record prices for coal. Global supplies have fallen due to Russia’s war against Ukraine and top exporter Indonesia’s ban on exports.

The Taliban reportedly collected around $40 in million in customs duties from coal exported to Pakistan in the first six months of this year. The hard-line Islamists have also boosted coal exports to 1.8 million tons in the past year, a rise of 16 percent. The Taliban has been exporting an estimated 12,000 to 14,000 tons of coal, mostly to Pakistan, each day.

But the Taliban’s plan to use Afghanistan’s easy-to-extract coal deposits to generate much-needed revenue has hit roadblocks in recent weeks.

Last month, the Taliban increased its taxes on coal exports from 20 percent to 30 percent. In early July, the Taliban’s Finance Ministry said it also lifted prices for coal from $90 per ton to $200. On July 15, coal was trading at over $300 per ton on international markets.

The price hike came soon after Pakistani Prime Minister Shehbaz Sharif announced plans to import heavily discounted coal from Afghanistan using Pakistani rupees to save dwindling foreign reserves.

The revelation sparked a public outcry in Afghanistan, where many have long viewed the Taliban as a Pakistani proxy. Islamabad has been the militants’ key foreign sponsor for decades and sheltered the Islamist group during its nearly 20-year insurgency against Afghan and international forces.

“The Taliban are sensitive to how Afghans domestically perceive them,” said Hameed Hakimi, an Afghanistan expert at the Washington-based Atlantic Council. “Therefore, selling coal cheaply to Pakistan would inevitably paint them as Pakistani puppets.”

Ultimately, Hakimi said, the price hike has “a lot to do with the Taliban’s desperate need to raise funds and maximize revenues.”

Pakistan is reportedly reevaluating its purchase of Afghan coal following the Taliban’s decision to more than double prices for the commodity. Chinese energy companies in Pakistan have threatened to stop importing Afghan coal.

‘Exploited Mining’

In forecasting a $2.6 billion budget that has impressed experts despite a projected $500 million deficit, the Taliban claimed to have cleaned up corruption in the collection of taxes and from the illegal mining and export of natural resources.

But experts said that significant amounts of coal were still being smuggled to Pakistan, an issue also faced by the previous government. Observers said some Taliban leaders and commanders were benefiting from illegal exports that skirted their own government’s revenue collection systems.

“Right now, there is no legal and administrative framework for mining,” said an Afghan mining expert who did not want to reveal his identity for security reasons. “The most powerful figures in successive Afghan governments have exploited mining to line their pockets and this has continued.”

Control over natural resources has led to Taliban infighting. Last month, the Taliban launched a major offensive against Mehdi Mujahid, formerly the most senior ethnic Hazara security official in the Taliban government. Observers said the violence was at least partly over the control of coal mines in Mujahid’s native northern province of Sar-e Pul.

“Competition over mineral resources will be a key driver of Taliban infighting,” the Afghan mining expert said.

During its insurgency, the Taliban partly funded its insurgency by operating mines and imposing illegal taxes on the trade.

“Now, they have to behave like a government to ensure that the mining sector provides desperately needed revenue,” said Hakimi. “This is a major dilemma the Islamist group faces in exploiting Afghanistan’s mineral wealth.”

Copyright (c) 2022. RFE/RL, Inc. Reprinted with the permission of Radio Free Europe/Radio Liberty, 1201 Connecticut Ave NW, Ste 400, Washington DC 20036.
Posted in Economic News, Ethnic Issues, Pakistan-Afghanistan Relations, Taliban | Tags: Coal Mining in Afghanistan, Illegal Mining, Mehdi Mujahid, Taliban infighting, Taliban looting resources |

1TV Afghanistan Dari News – July 15, 2022

15th July, 2022 · admin

Posted in News in Dari (Persian/Farsi) |

Fighting Rages On Between Taliban and Unidentified Gunmen in Imam Sahib District of Kunduz

15th July, 2022 · admin

8am: Local sources in the Imam Sahib district of Kunduz Province say that on Thursday night (July 14th), fierce fighting raged on between the Taliban and unknown armed men. Although the exact number of casualties is not known, local sources have said that both sides suffered casualties. The Taliban have claimed that they attacked an ISKP hideout in Imam Sahib district. Click here to read more (external link).

Posted in ISIS/DAESH, Security, Taliban | Tags: Attacks on Taliban, Kunduz |

Panjshir: Taliban Bombs Peshghor Village in Khenj District

15th July, 2022 · admin

8am: Local sources in Panjshir province say that the Taliban bombed the National Resistance Front (NRF) bases in Peshghor village and surrounding areas in Khenj District. NRF forces and civilians have not been harmed in this offensive. Sources state that the NRF commandos had left the area even before the offensive took place. Click here to read more (external link).

Posted in NRF - National Resistance Front, Security, Taliban | Tags: Panjshir |

‘Harassed here too’: Afghan artists find no sanctuary in Pakistan

15th July, 2022 · admin

The Guardian (UK): Musicians had hoped to keep their art alive after fleeing Taliban but now face crackdown on refugees. Ajmal Haikalzada, 44, first became a refugee when his artist father left Afghanistan for Pakistan during the Soviet-Afghan war in the 1980s. In 2001, then a musician, he returned, singing and performing across the country of his birth after the US toppled the Taliban. Two decades later, he fled once again as the Taliban took over Kabul. Click here to read more (external link).

Posted in Art and Culture, Pakistan-Afghanistan Relations, Refugees and Migrants, Taliban | Tags: Escape from the Taliban |

Taliban Open Fire at Wedding Convoy for Playing Music in Afghanistan’s Jaghuri District

15th July, 2022 · admin

8am: Taliban forces in the Jaghuri district of Ghazni province opened fire on a wedding party convoy on Thursday afternoon (July 14th). According to the source, the incident occurred on the outskirts of the district center. Taliban fighters apparently opened fire on the wedding entourage because they were playing music. Traditionally, during the wedding parties, the groom’s relatives travel the distance between the bride and the groom’s houses to accompany the bride. The groom’s companions dance and play music, according to their tradition. Click here to read more (external link).

Posted in Everyday Life, Taliban | Tags: Ghazni, Life under Taliban rule, Taliban ban music |

Amnesty International calls for urgent probe into alleged war crimes by UK’s SAS

14th July, 2022 · admin

Ariana: Amnesty International on Wednesday described the BBC’s findings of alleged war crimes by UK Special Forces in Afghanistan between 2010 and 2011 as horrific and called for an urgent investigation. “The BBC’s reporting outlines unlawful killings, including deliberate killing of individuals after they were detained, targeting of civilians and fabricating evidence to justify the killing of unarmed men, pointing to potential war crimes having been committed.” Click here to read more (external link).

Posted in Britain-Afghanistan Relations, Civilian Injuries and Deaths, Crime and Punishment, Human Rights | Tags: War Crime |
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