Neighbours agree to mega plan for Afghanistan’s economic reconstruction

ISLAMABAD: All the seven neighbouring countries of Afghanistan have pledge to a 72-point  agreement support Afghanistan’s economic reconstruction in areas such as humanitarian assistance, connectivity, economy and trade, agriculture, energy and capacity building.

The agreement was made at the third Foreign Ministers’ meeting among the neighboring countries of Afghanistan was held in Tunxi, Anhui Province in China recently. Foreign ministers or high-level representatives of China, Iran, Pakistan, Russia, Tajikistan, Turkmenistan and Uzbekistan were present.

All parties at the meeting note that with the end of long years of war in Afghanistan, the country is now struggling with serious economic and livelihood difficulties as well as challenges across sectors.

Ⅰ.Humanitarian assistance

All parties decide to provide further humanitarian assistance to Afghanistan, and call on the international community to give more support to Afghanistan, to help it restore cash liquidity and avoid humanitarian disaster.

China will speed up delivering its commitment of providing Afghanistan with emergency humanitarian assistance such as food, winter supplies, COVID-19 vaccines and medical equipment, and is ready to provide additional humanitarian assistance through bilateral and multilateral channels.

China will continue to provide Afghanistan with vaccines, medical equipment, medicine and other anti-epidemic supplies, carry out cooperation in Traditional Chinese Medicine, support the operation of Afghanistan’s medical and health systems, and help Afghanistan fight COVID-19.

Iran has sent more than 30 humanitarian aid shipments including food, medicine and health items to help the people in different cities of Afghanistan, and is consulting and coordinating with the Afghan side to send new supportive shipments. Iran will continue to provide emergency fuel and food and other necessary daily life items to the people of Afghanistan.

Pakistan announced in-kind humanitarian assistance package of Rs. 5 billion (around $ 30 million). Pakistan has provided more than 13,000 tonnes of humanitarian aid to Afghanistan under Pak-Afghan Cooperation Forum and provided three consignments of wheat to Afghanistan. Pakistan has also been channelizing humanitarian assistance from various philanthropic organizations of Pakistan.

Pakistan is also acting as a channel to facilitate the flow of international humanitarian assistance to Afghanistan, including providing transit facility for Indian wheat to Afghanistan on an exceptional basis for humanitarian purposes and facilitating the UN Humanitarian Air Service (UNHAS) air-bridge between Islamabad and Kabul. Pakistan hosted 17th Extraordinary Session of OIC-CFM in Islamabad on 19 December 2021 where, inter alia, the following was decided:

a. Establishment of a Humanitarian Trust Fund for Afghanistan (formalized during the 48th OIC Council of Foreign Ministers meeting in Islamabad)

b. Appointment of Ambassador Tarig Ali Bakheet as Special Envoy of the Secretary General of the OIC for Afghanistan

c. OIC General Secretariat, together with Islamic Development Bank and the Humanitarian Trust Fund, to devise a roadmap in concert with UN system organizations for unlocking financial and banking channels

d. OIC General Secretariat, in concert with World Health Organization and other relevant stakeholders, shall secure vaccines and medical supplies for Covid-19

e. Launching an Afghanistan Food Security Programme, under the aegis of Islamic Organization for Food Security (IOFS)

Pakistan continues to provide free Covid-19 vaccination for all Afghans entering Pakistan, works with the Bill Gates Foundation for the eradication of Polio in Afghanistan, and is allowing Afghan patients and their attendants entry into Pakistan to enable their treatment in hospitals across Pakistan.

Russia stands ready to continue its humanitarian assistance to the people of Afghanistan. Tajikistan will continue to provide its logistics means, in particular through the six bridges across Tajik-Afghan border, to deliver humanitarian assistance to the people of Afghanistan. Tajikistan will maintain the functioning of border crossing point Panji Poyon for transporting food and other vital products to the people of Afghanistan.

Tajikistan will also continue to offer medical services to the citizens of Afghanistan residing in Tajik-Afghan border areas.

Turkmenistan will continue to provide humanitarian support to Afghanistan on a systematic basis, which is expressed in the construction of medical and educational institutions on the territory of the neighboring country, preferential supplies of electricity, training of Afghan students in educational institutions of Turkmenistan, regularly sending of humanitarian convoys to Afghanistan, and other types of help and assistance.

Turkmenistan will continue to send humanitarian cargoes to Afghanistan with food, textile and household products, medicines and medical supplies, as well as oil products.

Turkmenistan from its own resources will supply medicines to the medical center built by Turkmenistan in the province of Faryab and the maternity hospital in the Turgundi city of the province of Herat.

Uzbekistan expressed readiness to use the capabilities of the international transport and logistics hub in the city of Termez for the delivery of humanitarian cargo to Afghanistan.

II.Connectivity

All parties recognize the importance of connectivity to the sustainable development of Afghanistan as a “land-locked country”, and stand ready to leverage their respective strengths to support Afghanistan in, based on the existing transportation networks with neighboring countries, exploring step by step new convenient channels to strengthen “hard connectivity” of infrastructure and “soft connectivity” of rules and standards with neighboring countries.

All parties are ready to strengthen cooperation in the implementation of transport agreements developed within the framework of the UN’s Economic and Social Commission for Asia and Pacific (ESCAP).

China supports the extension of the China-Pakistan Economic Corridor and the China-Central Asia-West Asia Economic Corridor to Afghanistan, and is ready to promote synergy between the Belt and Road Initiative and the development strategies of Afghanistan, and support the smooth operation of the China-Afghanistan freight train services, to help Afghanistan better integrate into the regional economic integration process.

Iran has paved the way for Afghanistan to connect to the world markets by the Khaf-Herat railway and plans to complete the railway and extend it to Central Asian countries via Mazar-e-Sharif to help Afghanistan get rid of land-lock limitations.

Iran is developing the port of Chabahar and will continue to develop the infrastructure of Chabahar port and its land and sea transit routes along with road projects such as the Mahiroud-Farah road undertaken by Iran in order to help strengthen the situation and transit position of Afghanistan.

Pakistan with its renewed focus on ‘geo-economics’ feels that the dividends of ‘regional’ connectivity cannot be realized without enduring peace in Afghanistan and will continue to support efforts  contributing to regional connectivity.

Pakistan believes that Afghanistan can be connected with the CPEC project for enhanced connectivity, which will benefit the entire region, especially Central Asia, for trade and commerce.

Agreement between Uzbekistan and Pakistan for Transit Trade (AUPTT) has been made operational and test run of four consignments under this arrangement has already materialized from Karachi to Tashkent through Afghanistan. Movement of trucks under TIR has been successfully operationalized between Pakistan and Uzbekistan via Afghanistan.

Pakistan is undertaking a number of connectivity projects with Afghanistan such as completion of Torkham-Jalalabad Road project and revival of road bus service between Pakistan and Afghanistan.

Russia supports development of transport connectivity between Central Asian countries and Afghanistan, Pakistan and other regional states and purposes in this regard to use capacities of Russian-Afghan joint transport companies “ASTRAS” and “AFSOTR”.

Tajikistan will further develop and construct the rail road and cargo center in the Free Economic Zone “Panj” on the border area with Afghanistan with the view to increase transit trade.

Turkmenistan will contribute to the development of the transport, transit and communication system of Afghanistan, the intensification of the transit of cargo and passenger flows, by maintaining the operation of the railways along the route Atamyrat-Imamnazar-Akina-Andkhoy, which is designed to connect the countries of the region with further access to the railway network of China. Turkmenistan is also interested in the further implementation of the transport project – the construction of the Turgundi-Herat railway with a length of 173 kilometers.

Turkmenistan intends to continue to promote the project of the transport corridor Turkmenistan-Afghanistan-Pakistan, as well as the implementation of the project of fiber optic line construction along the above route.

Turkmenistan will continue to promote the implementation of the Lapis Lazuli transit and transport corridor, established in the framework of the Agreement signed between Turkmenistan, Afghanistan, Azerbaijan, Georgia and Turkey. The successful implementation of this project will be a significant contribution to the development of interregional trade and economic relations, including the socio-economic condition of Afghanistan.

Turkmenistan will continue to maintain the uninterrupted operation of the Imamnazar-Akina and Serhetabat-Turgundi fiber optic lines, which are aimed at ensuring international transit flows, and will increase the speed of data transfer, as well as will guarantee a reliable communication link between Turkmenistan and Afghanistan.

Uzbekistan is ready to strengthen regional interconnectedness through the implementation of construction projects such as the “Termez—Mazar-i-Sharif—Kabul—Peshawar” railway line.

Uzbekistan will continue to actively participate in the restoration of infrastructure facilities, in particular, the international airport in Mazar-i-Sharif.

Uzbekistan is ready to take an active part in the construction of large infrastructure projects in Afghanistan, such as the construction of roads, roadside infrastructure, bridges and tunnels.

Ⅲ.Economy and trade

All parties expressed willingness to assist Afghanistan on its efforts toward self-generated development, and encourage Afghanistan to formulate future economic development plans based on its own national conditions and enhance internal driving force for development.

All parties agree to explore the establishment of an economic cooperation belt around Afghanistan to improve Afghanistan’s external development environment. All parties call on Afghanistan to create a favorable business environment for foreign enterprises.

All parties encourage the use of local currencies in bilateral trade and investment to lower transaction costs and facilitate trade and investment.

All parties are ready to strengthen communication with Afghanistan on trade policies, explore the signing of trade facilitation agreements, formulate transitional preferential trade arrangements, reduce taxes and fees on trade with Afghanistan, streamline customs clearance procedures such as commodity declaration and quality inspection, and improve Afghanistan’s level of trade facilitation.

China pledges to continue to provide development assistance to Afghanistan for small and medium livelihood projects to benefit Afghan people.

China supports its enterprises in investing and starting businesses in Afghanistan when the security situation permits, and in resuming projects such as the Aynak Copper Mine and the Amu Darya Oilfield in due course. China supports its enterprises to help Afghanistan improve its mobile network, and explore and develop mineral resources.

Iran is pursuing the expansion of bilateral trade and economic exchanges with Afghanistan by different tools including development of joint border markets and continues to remove trade obstacles through different ways including reduction of existing tariffs based on agreements with Afghan side.

Iran declares its readiness to assist in the exploration and extraction of mines, including the reserves in joint borders areas, and to provide technical assistance as well as joint investment to Afghanistan in this field.

Pakistan has taken initiative to facilitate transit trade through operationalizing five border crossing points with Afghanistan. To ease issues in trade with Afghanistan, Pakistan revised customs processes and implemented other facilitative measures, including put in place a facilitative visa regime for Afghan people.

Pakistan has allowed export of several items to Afghanistan in Pakistani Rupees via land routes to facilitate Afghanistan’s economy. A regime of Temporary Admission Documents (TAD) for commercial vehicles of Afghanistan and Pakistan has been agreed to facilitate movement of goods.

Pakistan has reduced / waived off customs duty on Afghanistan’s perishable items such as fruits and vegetables being exported to Pakistan, and offered Afghanistan the opportunity to establish cold storage facilities close to border crossing points to assist trade in fruits and vegetables.

Russia expresses its support to national and joint Russian-Afghan businesses to start economic and trade activities in Afghanistan. Russia supports its companies to develop Afghanistan’s oil and gas fields and realize mined products on mutual agreed conditions.

Ⅳ. Agriculture

All parties note that agriculture is Afghanistan’s pillar industry, encourage Afghanistan to vigorously develop agriculture and raise food self-sufficiency, and stand ready to provide necessary support for Afghanistan’s agricultural development.

China supports Afghanistan in cultivating cotton, pepper, sunflower seeds and other agricultural products and exporting them to China, and will continue to facilitate the export of Afghan specialty agricultural products including pine nut, saffron, almond and pomegranate to China.

China stands ready to, as needed by Afghanistan, provide seeds, fertilizers and agricultural materials and machinery to Afghanistan, and support the development of high-value-added agricultural industries such as greenhouse planting to help Afghan farmers raise income.

China supports Afghanistan in strengthening agricultural infrastructure.

Iran declares its readiness to present to Afghanistan side a list of its agricultural and livestock needs to be produced in Afghanistan in order to be exported to Iran.

Pakistan is desirous of deepening agriculture cooperation with Afghanistan and continues to engage with Afghan side to explore ways and means for agriculture.

Pakistan can provide all possible technical assistance and capacity building opportunities to Afghanistan in the field of agriculture and livestock.

Pakistan and Afghanistan can enhance cooperation in agri-research, imports / exports of agricultural products, market access and potential areas of trade in livestock, red meat and fisheries.

Russia will develop cooperation with Afghanistan in the areas of mutual interest, in particular to promote the comprehensive agricultural development of Afghanistan, ensure food security, facilitate export of Russian agricultural products, and facilitate mutual access to agricultural products. Russia supports its enterprises to export livestock and agricultural products to Afghanistan on Afghanistan’s market demands.

Uzbekistan will continue to supply Afghanistan with food products, flour and grain, as well as essential goods.

V. Energy

All parties recognize that accelerating energy infrastructure development is crucial to Afghanistan’s economic development and improvement of living standards, and stand ready to make joint efforts to improve Afghanistan’s energy infrastructure.

China is ready to continue discussions with Afghanistan on solar power station and other projects based on Afghanistan’s needs and security condition, etc.

Iran declares its readiness to increase the current level of electricity export to Afghanistan, welcomes constructing power plants inside the country and also exporting technical and engineering services for all shapes of energy including renewable ones.

Pakistan supports energy infrastructure projects for the integration of regional countries in terms of economic development, infrastructure and improvement in livelihoods.

Pakistan is working on mega projects such as CASA-1000 and TAPI to augment energy cooperation with Central Asia through Afghanistan.

Russia stands ready to consider conduction of analysis with other interested parties of Afghanistan’s crucial infrastructure (power, water supply, road system etc.) with a view to develop a coordinated reconstruction plan.

 

Mian Abrar
Mian Abrar
The writer heads Pakistan Today's Islamabad Bureau. He has a special focus on counter-terrorism and inter-state relations in Asia, Asia Pacific and South East Asia regions. He tweets as @mian_abrar and also can be reached at [email protected]

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