Kazakhstan has held negotiations with Pakistan’s National Logistics Cell, which works closely with Afghan companies as well
Astana
Pakistan’s National Logistic Cell (NLC) will transport flour to Afghanistan from Kazakhstan. Kazakhstan has held negotiations with Pakistan’s National Logistics Cell, which works closely with Afghan companies as well.
Afghan authorities are importing flour from Kazakhstan and two Central Asian States – Uzbekistan and Turkmenistan are ready to give discount to Kazakhstan for transportation of flour to Afghanistan.
The Deputy Prime Minister and Minister of Trade and Integration of Kazakhstan, Serik Zhumangarin, stated at the Kazakhstan-Afghanistan Business Forum in Astana that Kazakhstan intends to maintain and increase the volume of flour exports to Afghanistan, Kazinform reports.
Currently, almost all of Kazakhstan’s flour exports to Afghanistan pass through Uzbekistan. In the first four months of 2023, more than 450,000 tons of flour worth $150.8 million were sent to Afghanistan via Uzbekistan, Zhumangarin said.
However, he also mentioned the relatively high tariffs imposed by Uzbekistan on the transportation of Kazakh grain cargos to Afghanistan and Tajikistan. To address this issue and boost export volumes to Afghanistan, work has been initiated to expand transit transportation options to Afghanistan.
Zhumangarin pointed out that Turkmenistan is interested in developing transportation through its territory and is ready to offer preferential transit tariffs. This route could serve as an alternative for sending flour and other goods, especially for milled products. For this purpose, the unified operator for the promotion of non-raw materials exports, “QazTrade,” will facilitate cost-effective delivery of Kazakh goods to the Bolashak station. Additionally, agreements have been strengthened with Uzbekistan to provide preferential conditions for transit transportation through both countries’ territories for the parity supply of flour and grain to Afghanistan.
Earlier reports indicated that trade between Kazakhstan and Afghanistan amounted to $343.6 million in the first six months of the current year, with Kazakhstan’s exports accounting for $334.5 million. Afghanistan remains a dominant market for Kazakh flour, with 70% of the total flour exports directed to this country.
The Kazakhstan-Afghanistan Business Forum commenced in Astana with the participation of official representatives from both countries and business-sector representatives.
Afghanistan asks Kazakhstan for special discounts on wheat
Afghanistan’s Minister of Industry and Trade, Alhaj Nuruddin Azizi, requested special discounts on wheat and flour imported from Kazakhstan, during the Kazakhstan-Afghanistan Business Forum on August 3, 2023, Zakon.kz reports.
He stated that national security in Afghanistan, simplified processes, the elimination of administrative corruption, and transparency in government affairs have led to a revival of business in the country.
In 2022, Afghanistan reached basic agreements with its trading partners, including Uzbekistan, Iran, Russia, China, Pakistan, and other countries.
“Recently, hundreds of foreign investors have shown interest in investing in various sectors of Afghanistan, obtained work permits, and are in contact with various Afghan authorities to start their activities. The Islamic Emirate of Afghanistan is considering the possibility of using numerous tax incentives to provide opportunities to the private sector, and I sincerely request and invite esteemed investors to invest in Afghanistan with full confidence,” said Nuruddin Azizi.
He believes that Afghanistan has achieved complete self-sufficiency in a short period thanks to the production of dozens of domestic goods.
“In addition, hundreds of items of our industrial products are being created and grown, and we ask Kazakhstan to apply preferential tariffs to Afghanistan’s products exported to your country to support Afghanistan’s domestic industry. We also request special discounts on the price of wheat and flour imported from Kazakhstan to Afghanistan in order to support the Afghan population and private sector,” Nuruddin Azizi appealed.
The Afghan official noted that despite some economic and political challenges, there are real and practical investment opportunities in the fields of mining, industry, agriculture, trade, and services in Afghanistan. He extended an invitation to Kazakhstan to invest in the sectors of their interest in Afghanistan.
The Kazakhstan-Afghanistan Business Forum commenced in Astana with the participation of official representatives from both countries and business representatives.
Export of Kazakhstan to Afghanistan doubled
The Vice Premier and Minister of Trade and Integration of Kazakhstan Serik Zhumangarin, announced on August 3, 2023, during the Kazakhstan-Afghanistan Business Forum that the trade turnover between Kazakhstan and Afghanistan for the year 2022 nearly reached the $1 billion, doubling compared to 2021. This information was reported by Zakon.kz.
Zhumangarin confirmed that Kazakhstan supports the establishment of Afghanistan as an independent, neutral, unified, peaceful, democratic, and prosperous state.
“We are interested in maintaining the existing trade, economic, transport, logistics, and energy ties with Afghanistan. The trade turnover between Kazakhstan and Afghanistan for 2022 reached nearly $1 billion, with a 90% share being accounted for by Kazakh exports, mainly processed goods. Trade between the countries in the first five months of the current year amounted to $316.6 million, with $310 million attributed to Kazakh exports,” said Zhumangarin.
Afghanistan is a priority market for Kazakhstan’s flour exports, constituting 70% of the total flour exports.
“We currently see a trend towards diversification of the export basket. According to our calculations, Kazakhstan has export potential for food, petrochemical, chemical, metallurgical, light industry, and machinery products to Afghanistan, amounting to $500 million. Investment cooperation between the countries is also developing. Since 2005, the gross inflow of investments from Afghanistan into the Kazakh economy reached about $11.7 million. There are 52 joint ventures in Kazakhstan that operate in the trade sector,” stated the Vice Premier of Kazakhstan.
It is crucial to preserve and increase traditional supplies of Kazakhstani flour to Afghanistan, mainly through Uzbekistan’s territory. In the first four months of 2023, over 450,000 tons of flour worth $150.8 million were sent to Afghanistan through Uzbekistan, according to Zhumangarin.
Due to relatively high tariffs for transporting Kazakh grain through Uzbekistan to Afghanistan and Tajikistan, the Kazakh side is working on expanding transit transportation possibilities to Afghanistan. This should increase the volume of exports and satisfy the Afghan market’s demand.
“Today, Turkmenistan is interested in developing transportation through its territory and is ready to provide discounts and preferential transit tariffs on its territory. This direction can be an alternative route for the delivery of flour products. To achieve this, the Unified Operator for the Promotion of Non-raw Material Goods Export, QazTrade, will ensure a reduction in delivery costs of domestic goods to Bolashak station. Simultaneously, we have strengthened agreements with Uzbekistan to provide favorable conditions for transit railway transportation through our countries’ territories, so that we can supply flour and grain to Afghanistan on a parity basis,” added Zhumangarin.
Afghanistan serves as a key transportation corridor in Central Asia, leading to Pakistan and India, which are of significant interest to Kazakhstan in terms of trade. Kazakhstan has conducted negotiations with the large Pakistani logistics company NLC (National Logistics Cell), which works closely with Afghan companies as well.
“The company already offers services for transporting goods to/from Pakistan by road through Afghanistan with competitive tariffs in a short period and ensuring security. Additionally, Kazakhstan highly values the initiative to construct the railway Trans-Afghan transport corridor Mazar-i-Sharif – Kabul – Peshawar, which will provide uninterrupted interregional cooperation between Central Asian countries and South Asian and Middle Eastern countries. This route will give a new impetus to the dynamics of trade and economic exchanges,” further mentioned Vice Premier of Kazakhstan, Zhumangarin.
The Minister also mentioned that Kazakhstan is ready to implement educational programs to train Afghan students. In the current year, Kazakhstan is ready to allocate 30 grants for students from Afghanistan. Currently, more than 450 Afghan students are studying in Kazakhstan.
The Kazakhstan-Afghanistan Business Forum commenced in Astana with the participation of official representatives from both countries and business representatives.
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Courtesy: Central Asian Light (Posted on Aug 03, 2023)
