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Afghan NewsAfghan NewsAfghan News October, 2012

The Islamic Republic of Afghanistan has at-tained membership in the 32-member Asia Cooperation Dialogue (ACD), with H.E. President Hamid Karzai participating in the October 16th summit in Kuwait. H.E. Foreign Minister Zalmai Rassoul and H.E. National Security Advisor Dr. Rangin Spanta also par-ticipated in a number of related events. The Dialogue was launched in 2002 by the King-dom of Thailand. Key objectives of the ACD are to broaden economic and cultural coopera-tion among Asian countries; improve people’s lives; fight poverty and terrorism; manage natural disasters and to promote agriculture, tourism, transportation, technology and hu-man resources. It will be further enhanced through the noble initiative of His Highness Sheikh Sabah Al Ahmed Al-Jaber Al Sabah, the Amir of the State of Kuwait, through the establishment of a US$2 billion ACD Trust Fund to support development in the least de-veloped Asian countries; H.E. the President hailed His Majesty for this enlightened move. Referring in His speech to Afghanistan’s re-spect for “the core principles of the ACD,

Inside this issue:

Latest News

namely positive thinking; informality; vol-untarism; openness and respect for diver-sity,” H.E. President Karzai stated: “I am fully confident that our membership in this very important Asian Cooperation Dialogue will further provide the opportunity to better strengthen our regional cooperation for the well being of our continent and beyond.” H.E. the President further offered encour-agement to all, adding, “I am confident that together we can realize the goals and objec-tives of the ACD to consolidate Asian po-tentials by maximizing the diversity and rich resources of our continent.”

H.E. President Karzai, Dr. Rassoul attend

20th ECO Council of Ministers Meeting

H.E. President Hamid Karzai led a high-ranking delegation including H.E. Foreign Minister Zalmai Rassoul which attended the 20th Meeting of Economic Cooperation Organization (ECO) Council of Ministers meeting in Azerbaijan on October 15th.

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Latest News Pg.1-5

Interview with H.E. Gov. Delawari of Da Afghani-stan Bank

Pg. 5-6

Upcoming Events

Pg.6

H.E. President Karzai speaks at the Asian Cooperation Dialogue

upon Afghanistan’s joining of the body

Select financial facts

In honor of the visit

of H.E. the Minister

of Finance and H.E.

the Governor of Da

Afghanistan Bank

Annual economic growth – more than 15% Domestic total revenues (both tax and non tax) in the 1st quarter of the year (March to June) in-creased by 13% over the same period last year, reaching 26 billion Af-ghanis. 18 major banks including U.K. charter and others. Many have worldwide service (Includes ATM service in major cities)

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Afghan News, November 1010

ECO member countries, and our interna-tional partners over the past decade. In addition, as a majority of our region’s population is involved in agriculture, we, therefore, encourage the expansion of cooperation among ECO members in developing the agricultural and agro-business potential of the ECO region.”

H.E. Minister Zakhilwal, H.E. Gov.

Delawari, attend IMF-World Bank

annual meeting, side meetings

H.E. Minister Dr. Omar Zakhilwal and H.E. Governor Noorullah Delawari of Da Afghanistan Bank arrived in Japan on October 9th and 11th respectively to attend the annual meeting of the Interna-tional Monetary Fund (IMF) and the World Bank Group and engage in a number of events and meetings. Ambas-sador Dr. Sayed M. Amin Fatimie was able to spend valuable time with each of the gentlemen, expressing deepest grati-

tude for their respective roles in bring-ing development to the Islamic Repub-lic of Afghanistan, both in terms of economic development and in ensuring the fiscal success of other areas of de-velopment and peace outreach. Fur-thermore, Ambassador Fatimie helped in preperations for Their successful interactions with the Japanese hosts. A reception in honor of H.E. Minister Zakhilwal’s visit was organized at the Embassy on October 10th and in-volved visiting Afghan teachers par-ticipating in a training program in Ja-pan. Speaking to all participants, Am-bassador Fatimie encouraged the atten-dees to work within their different and yet inter-related areas to ensure the sustainable growth of the nation and to build upon the already strong ties with Japan. On the 12th, Ambassador Fatimie at-tended along with Their Excellencies, additional members of the visiting delegations, and staff of the Embassy, the IMF-World Bank annual meeting. Speeches were made by H.M. the Crown Prince; Chairman Riad Salameh; the IMF’s managing director, Mdm. Christine Legarde; and Dr. Jim Yong Kim, President of the World Bank, who kindly mentioned Afghani-stan’s success in building the health sector, which Ambassador Fatimie oversaw in his previous ministerial role, is an inspiration to the world. In His other activities, H.E. Minister Zakhilwal attended on October 10th a meeting with Vice President Hideaki

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(ABOUT ECO). The 10-nation body organized under the United Nations Charter (Chap. VIII) which “provides a platform to discuss ways to improve development and promote trade, and investment opportu-nities” (Wikipedia). Afghanistan prioritizes involvement in important regional groupings, as H.E. the Foreign Minister elaborated, “I firmly believe that the building blocks of regional economic integration be-tween my country and our neighbors will build stronger bonds of trust and cooperation, and bring dividends of peace and prosperity to all of us.” Towards this, the Islamic Republic of Afghanistan has made key inroads in building more ties in various areas with ECO members, including such areas highlighted in H.E.’s speech as joining the ECO Bank and launching “the ECO Container Train along the Islamabad-Tehran-Istanbul route, as well as the ECO Silk Road Truck Caravan.” Fur-ther plans mentioned included working towards “open[ing] up a railway line from China to Europe via the Kyrgyz Republic, Tajikistan, Afghanistan, Iran, and Turkey” through the completion of the pre-feasibility study for Afghani-stan’s portion. H.E. Foreign Minister Rassoul offered ways to bring more success to this ini-tiative and its member states: “Taking bold steps now to accelerate the reduc-tion of barriers, as well as to build a 21st century infrastructure for regional trade and transit is the best guarantee to safeguard and make durable the signifi-cant investments made by Afghanistan,

Afghan News, October 2012

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Afghan News, October 2012

by H.E. Mr. Wais Barmak, Minister of Rehabilitation and Rural Develop-ment; H.E. Dr. Omar Zakhaiwal, Min-ister of Finance; Mr. Mustafa Zahir, General Director of the Environment Department; Shah Waliullah Adeeb, the Honorable Governor of Badak-shan; and a number of local officials. In relation, a 104 kilometer stretch of road will be constructed in the area. Together, the bridges and the road will connect the districts of Sheghnan, Mahenme, Nassi, Shaki, and Kofab with the provincial capital of Faizabad. In Faizabad, work has also begun on a water supply project with the assis-tance of UNICEF. In addition to the jobs that this project has created, this will help to provide potable water to some 15,000 families in an area where such water can be scarce. Earlier this month, the construction of a power plant in Logar province and a sub-station in Pul-i-Alem were offi-cially approved. Work will begin within a month and the project will be completed within 20 months.

Access to Internet improving via

new 3G services, fiber optics

Roughly 7% of Afghans are connected to the Internet at present. In order to

Domichi, in which they discussed Ja-pan’s continuing efforts to cooperate in Afghanistan’s peace and development processes. H.E. the Minister also at-tended on October 11th a round table discussion on “South Asia and the Global Economic Crisis: Can Regional Cooperation Buffer Volatility and En-hance Growth.” Side meetings were arranged with Ms. Marisa Lago, US Treasury Assistant Secretary; Mr. Mas-sod Ahmed, the IMF’s Director of the Middle East Department; Ms. Nemat Shafik, Deputy Managing Director of the IMF; and with Ms. Indrawati. In each of these meetings, progress on past cooperation was discussed and future avenues of partnership were also con-sidered. H.E. Also attended the recep-tion, along with his delegation and staff from the Embassy, hosted by H.E. Prime Minister Yoshihiko Noda. During His other activities, H.E. Gover-nor Delawari met with representatives of the Japan International Cooperation Agency, Mr. Ahmed of the IMF, and delegates from the United Arab Emir-ates, as well as members of private in-ternational banks, among others. The Embassy also hosted a reception in honor of H.E. Governor Delawari on October 16th.

International Teachers Day observed

International Teachers’ Day was ob-served in Kabul and other cities nation-wide on October 5th. The day was first marked in Afghanistan in 1961 by Dr. Ali Ahmad Popal, then Minister of Edu-cation, with grand ceremonies. In this year’s function held in Ariana Lycee, a school in Kabul, Mr. Mohammad Wahid Nuri, head of the

Ministry of Education’s International De-partment and Cultural Affairs section, spoke on the role of teacher in developing society. H.E. Dr. Abidullah Obid, Minis-ter of Higher Education, also sent a mes-sage of congratulations on the day. In related news, 2,000 teachers from 14 districts of Baghlan province will undergo a one-month workshop to improve their skills. The workshop will be held in the provincial capital of Pul-e-Khumri. As many as 40,000 teachers may be eligible for similar training at a later date.

Palace of Jabul Seraj underway

Reconstruction work began this month on the historic palace of Jabul Seraj in Par-wan with the financial support of the Hon. Governor Gen. Abdul Basir Salangi and local citizens. The palace was built at the beginning of 20th century by Sarajul Mella Amir Habibullah Khan. A museum will be created in the facility.

Development nationwide continues

progression

Five bridges were constructed on the Kokcha River in the Darwazha district of Badakhshan with the support of GTZ and Agha Khan Foundation. The bridges were opened to traffic in a ceremony attended

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Afghan News, October 2012

juice concentrate and fresh produce, in particular the highly beneficial pome-granate, to clients in Britain, Western Europe, Canada, Dubai, Pakistan, India, and Southeast Asia. Currently sales are at around US$30 million after 2 years in operations. The company has created jobs for nearly 1,000 direct employees and supports the income of the around 35,000 farmers who sell Omaid Bahar 40,000 tonnes of fruit each year. Sadiq is helping farmers to modernize methods in the process. The company has devel-oped new lines of yogurts, fruit-flavored milk, jams, and jellies. Furthermore, due to deals being worked out for distribu-tion in the United States, Tajikistan, and Uzbekistan, as well as possibly becom-ing the supplier of fruit juices for the Afghan security forces and NATO, Sadiq believes that the company will grow into a US$100 million operation. "We have a premium product here and it is almost organically produced. Because of the climate and the taste we are a step ahead of our competitors," says Sadiq. Meanwhile, the World Bank, in its most recent assessment, said that while growth reached 8.4 percent in 2010/11, bolstered by big aid flows, the NATO pullout could halve that rate. (Information taken from Reuters’ origi-nal story)

Coal revenue increases

Samangan province has reported 721 million Afghanis in revenue from the Darai Souf coal mine over the past six months. This is 193 million Afghanis more than the same period last year. According to a previous survey, the min contains more than 150 million tons of coal. The coal is currently used domestically and in neighbouring na-tions.

New Military Academy under con-

struction

Construction has begun on a new mili-tary academy. The academy will train 1,500 Afghan National Army (ANA) officers annually. ANA Chief of Staff Shir Mohammad Karimi was quoted as saying that the academy “will help increase educational competence among the Afghan National Army sol-diers and it will also help us have a more professional leadership within the army." Initially, the academy will be backed by the UK, but it will soon transition full Afghan training and op-erations. Construction is expected to be complete in one year.

Buzkashi Boys wins multiple film

awards

Afghan film Buzkashi boys won best drama at the prestigious LA Shorts Fest, among other awards at additional

connect more of the population, the Ministry of Telecommunications and Information Technology (MCIT) has awarded licenses to a number of private telecommunication companies to offer 3G services domestically. Providers will include Etisalat, which is active now in areas such as Kabul, Mazar e Sharif, Nangarhar and Heart, while and MTN. With the great majority of people pos-sessing mobile phones, this will quickly expand the use of the Internet. 3G ser-vices are expected to raise an additional US$90 million in revenue for the gov-ernment. In addition, the ministry is also working to expand fiber optic services. These moves are seen to benefit society as a whole, but to specifically allow for support to “educational institutions, agriculture, and the trade and business community,” according to ATRA’s Khair Muhammad Faizi.

Business sector increasingly active:

juice company expanding

Mustafa Sadiq’s Kabul-based 'Omaid Bahar' (meaning Spring Wish) com-pany, most well-known for its world-class quality juice, has been reporting unprecedented success due to increasing demand worldwide for healthy prod-ucts. The company specializes in selling fruit

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Afghan News, October 2012

Interview with

H.E. Governor Delawari

of Da Afghanistan Bank

The Embassy was able to have an inter-view with H.E. Governor Noorullah Delawari of Da Afghanistan Bank. Posi-tive progress has been steadily continu-ing in Afghanistan’s financial sector. H.E. the Governor provides examples of developments and how the much-talked about problems with Kabul Bank were handled without damage to anyone as well as how confidence has been re-stored. The transcript of the interview follows. (Above photograph from Da Afghanistan Bank’s Web site) Please share some of the developments

happening in Afghanistan’s banking.

We had a setback with the result of the failure of the Kabul Bank that shows that we have since, at least since last year, we have started recovering both in terms of deposits and customers and re-establishment of faith in the banking

system in the country. So we have got back on our feet as far as the banking system is concerned. We have made a number of changes in the law to close some loopholes that were problematic, based on the lesson learned from Kabul Bank. We have made some structural changes in the banking system including the law. What has happened in the banking

system has been amazing. How is the

banking sector’s penetration outside of

Kabul?

We have 220 full branch banks across the country. We have a number of lim-ited services offered, including ATM machines in Kabul and some other commercial centers. The very latest development is mobile payment, where we have already li-censed one bank - one mobile operator - Roshan, which is fully operating. Through that one can transfer money by telephone in a few minutes to most parts of the country. We have three other mobile operators which have applied: MTN, Etisalat and a of the government operators belonging to the Ministry of Communications. So, three operators are in the process of obtain-ing licenses. The Central Bank has introduced regulations governing li-censing and as well as monitoring of these operators. So we are expecting this will enable Afghanistan to maxi-mize access to most parts of the coun-try. Today, less than 3% of the Afghan population has access to banks. Through this medium, we can expand that to all parts of the country. Perhaps over 50% of the population will have access to finance. Mobile banking is not only to transfer money but to do most services across the country. Peo-ple could pay their bills, could receive their salaries, people could pay fees relating to all sorts of life – which is common in the provinces. When you have a transfer of property, you pay fees; when you obtain a passport to travel, you have fees … all of these could be handled by mobile money. How is the coverage so far?

We have quite a few people. Roshan has over 30,000 accounts established throughout the country. We have now

film festivals, making it eligible to be nominated for an Academy Award. The story tells of two boys who dream of playing Buzkashi, Afghanistan’s na-tional sport and a precursor of polo. Afghanistan’s film industry is beginning to take off. Several universities in the nation teach courses on film. This pro-duction, however, worked together with several international crew members, to make a very rich blend of Hollywood-style filmography and traditional touches.

National team participates in first

international rugby competition

Having been established only less than two years ago, and becoming affiliated with the Asian Rugby Football Union only last November, the Afghanistan Rugby Federation fielded a national team at its first official competition at the Asian Sevens in Mumbai, India. Earlier this year an Afghan team played a series of unofficial matches against the United Arab Emirates’ Shaheen. In Mumbai, this first official competi-tion featured 15 other international teams. Afghanistan played preliminary matches against Japan, Philippines, and Singapore from October 13th. Finishing low in the final rankings, the team still inspired, showing that in a short time, the nation’s athletes are capable of com-peting on a world stage.

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Afghan News, October 2012

How is the Central Bank working with

the government to ensure there will be

no negative financial repercussions after

the withdrawal of international forces

and the funds that they inject?

There will be no problems resulting from this.

- UPCOMING EVENTS -

November 9, 10 (11 am to 7 pm): Mi-

nato City Fair of Manufacturing,

Commerce, and Tourism

Tokyo Midtown (Canopy Square

Atrium Courtyard

The Embassy will participate with a cultural booth, allowing for interaction with Afghan culture, such as having your name written in our alphabet. Af-ghan crafts and accessories will also be available for purchase.

November 18 (10 am to 1 pm):

Tochihi Afghan Event

Please check with our Web site for further details soon.

Photos below from the Embassy’s

October events in Yokohama and

Tachikawa, Tokyo

new ideas – new ways of paying and receiving money has been established. Can you provide more details on how

confidence is being restored after the

problems with Kabul Bank?

Kabul Bank was the first test. Nobody lost any money. We didn’t have at that point insurance, but the government recognized the importance of bank ser-vices and guaranteed payments and whoever wanted to get his/her cash went to Kabul Bank and was fully paid. So nobody lost money. However, there were matters which caused the bank to collapse – and this was a matter of im-portance to the international commu-nity. It indicated certain areas like fraud committed by people. Two international organizations came and they were hired to provide help. One was Kroll of Brit-ain. It came and did work on Kabul Bank and the second largest bank, Azizi Bank. It provided very valuable infor-mation and guidance throughout.

Embassy of Afghanistan in Tokyo 2-2-1 Azabudai, Minato ward, Tokyo, 106-0041 Tel: 03-5574-7611

Fax: 03-5574-0195

Website

www.afghanembassyjp.org

Contact Us

If you have any comments, questions or suggestions regarding this newsletter or the Embassy, please send an e-mail to the embassy’s Public Affairs Officer, Jason Pratt:

pratt@afghanembassyjp.org