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Afghanistan seeks foreign investment for economy self-sufficiency

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From day one, the Taliban were pining high hopes on China, Russia, and Iran to invest in Afghanistan in different fields.  Taliban seized power in August 2021 and the leadership had repeatedly said they want to have good ties with the world, especially with the neighbors and regional countries. The Taliban is also willing to have more contribution from Pakistan but the country itself is marred with so many economic difficulties.

Afghanistan under the Taliban is indeed suffering from immense economic trouble. Poverty has reached its peak with almost zero-jot opportunities. Over half of the estimated 35 million populations are living below the poverty line.

The US also froze some $9 billion in Afghan assets as what Washington describes to save the money from the hand of Taliban. But, on a monthly basis, the Taliban administration has been receiving some $10 million on a weekly basis, making it $40 million in a month. However, some unconfirmed reports say that this money has not been transformed to the Taliban in the past three weeks. Meanwhile, the Taliban has been looking for alternative and other business models to help improve its fragile economy.

Oil extrication agreement

The Taliban has signed a contract with China’s CAPEIC (Xinjiang Central Asia Oil and Gas Company) to extract oil from northern Afghanistan’s Amu Darya basin. This agreement is an apparent attempt to bolster Afghanistan’s increasingly impoverished and isolated economy. The agreement with CAPEIC is the first major international energy extraction deal the Taliban has signed since taking control of the country in 2021.

The contract was signed in the capital Kabul in the presence of Taliban’s Deputy Prime Minister for Economic Affairs Mullah Abdul Ghani Baradar and the Chinese ambassador to Afghanistan, Wang Yu.

Speaking in the signing ceremony, Baradar said several projects were approved by the Economic Commission, and with their undertaking, fundamental steps will be taken assuming the prosperity of the country and public welfare.

Calling the oil extraction contract as a crucial step towards the country reaching self-sufficiency, he called on the Chinese company to work in accordance with international standards and to provide local people with public benefits.

Amu Darya basin is located in Sar-e-Pul province, and Baradar seemed happy that the project will provide jobs to the people to improve their economic situation.

Taliban’s Minister of Mines and Petroleum, Sheikh Shahabuddin Delawar said oil will be extracted from an area covering 4,500 square kilometers across parts of Sar-e-Pul, Jawzjan and Faryab provinces.

“At least 3,000 people would get work opportunities once the extraction work starts,” according to a statement by the Taliban. It said that 200 tons of oil would be extracted initially in a day and the quantity would increase to 1,000 tons a day gradually.

$150 million investment for initial period

Indeed, such an agreement will boost the economic situation and a good step toward further improving relations between Kabul and Beijing. “This contract is important for the economic growth and self-sufficiency of Afghanistan,” China’s Ambassador to Afghanistan, Wang Yu said as he sees the agreement as a good illustration of alliance and interaction between the two countries.

Taliban spokesman, Zabihullah Mujahid said that the Chinese company will invest $150 million a year in Afghanistan under the contract, and its investment would increase to $540 million in three years. The contract period is for the 25-year.

As per the estimates, the Amu Darya basin holds over 80 million barrels of crude oil and in 2012, China’s state-owned company National Petroleum Corp (CNPC) signed a contract with Afghanistan’s previous government to extract oil from the basin.

The fresh contract came at a time when Afghanistan is in desperate need to boost its economy as international funding has remained largely frozen since the Taliban returned to power.

China opens for investment despite security threat

Already facing a lack of formal recognition and sanctions hampering the country’s banking sector, investors are faced with growing security concerns, especially after the Islamic State (IS) aka Daesh terrorist group attacked on foreign targets in Kabul.

This month, three unidentified armed men opened fire inside the multi-storey Kabul Longan Hotel, a residency popular with Chinese nationals, in central Kabul, wounding five Chinese. Taliban forces gunned down all the three attackers.

“We are happy that China did not stop investment after the hotel attack,” said an official at the Interior Ministry. Speaking to Harici, the official said that there was fear that the attack could prompt some re-thinking among the Chinese investors. “We are happy to see that China signed the agreement and we are ready to work day and night to maintain security for such investments,” he said, wishing anonymity.

Taliban’s Acting Commerce Minister, Haji Nooruddin Azizi had recently said that they will support any project which can help Afghanistan to reach self-sufficiency.

“We will start a national self-sufficiency program, we will encourage all government administrations to use domestic products, and we will also try to encourage people through mosques to support our domestic products,” Azizi said in an interview with Reuters. “

Referring to the hotel attack, Azizi said that they take every step to protect the businessmen from any harm. “The attack hasn’t had any bad impact, but if it happened constantly, yes it might have a bad impact,” he said, referring to the investment environment.

Azizi furthered that countries including Iran, Russia and China were interested in trade and investment in Afghanistan, adding that some of the projects under discussion were Chinese industrial parks and thermal power plants, with involvement from Russia and Iran.

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Syria will not follow Afghanistan’s Taliban model of governance

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In an astonishing statement, Ahmed Shará, also known as Abu Mohamad Jolani, the leader of the Hayat Tahrir al-Sham (HTS) said that he will allow the girls to go to schools and will not turn Syria like Afghanistan under the rule of the Taliban.

Jolani, the de facto ruler of Syria, said that he will distance himself from the Taliban’s strict policies on women’s rights, and said that Syria will not follow the Taliban’s mode of governance.  

Jolani, who brought down the government of Bashar al-Assad and also widely welcomed by the Taliban, said that he believes in the education of women and girls and will not make Syria like Afghanistan.

“Syria is a diverse society with various ideas, unlike Afghanistan, which is more tribal. The Afghan model cannot be applied here,” Jolani told a BBC reporter.

Jolani says that Syria is a diverse society with various ideas, unlike Afghanistan, which is more tribal.

Jolani’s comment came when the Taliban congratulated the HTS-led victory by Jolani over Assad’s regime after years of fighting. The Afghan Foreign Ministry celebrated Jolani’s victory through a statement and hoped Jolani can bring peace and stability in the country.

“It is hoped that the power transition process is advanced in a manner that lays the foundation of a sovereign and serve-oriented Islamic government in the line with the aspiration of the Syrian people; that unifies the entire population without discrimination and retribution through adoption of a general assembly; and a positive foreign policy with world countries the safeguard Syria from a threat of negative rivalries of foreign actors and creates conditions for the return of millions of refugees,” the statement by Taliban Foreign Ministry.

However, Jolan’s position on the rights of women and girls is in great contrast with the current view of the Taliban leadership. Women and girls have been banned from education and work since the return of the Taliban in August 2021, following the collapse of the Republic System and withdrawal of the US troops from Afghanistan. Girls and women are even banned from medical institutions and visiting public spaces.

Jolani says he has a plan to create a government based institution and a council chosen by the people. 

The situation got worse when the Taliban’s Ministry for the Promotion of Virtue and Prevention of Vice called women’s voices “immodest” compounding their exclusion from public life. This year, it has been marked as three years since girls were banned from pursuing education over sixth grade. Besides that, on December 20, 2022, the Taliban’s Ministry of Higher Education announced that women would be barred from attending public and private universities.    

In an interview with CNN, Jolani said that he has a plan to create a government based on institutions and a “council chosen by the people.”

“When we talk about objectives, the goal of the revolution remains the overthrow of this regime. It is our right to use all available means to achieve that goal,” said Jolani.

“The seeds of the regime’s defeat have always been within it… the Iranians attempted to revive the regime, buying it time, and later the Russians also tried to prop it up. But the truth remains: this regime is dead.”

Moreover, he also said the Syrian people are the “rightful owners” of the country after the ouster of Assad, and declared a “new history” has been written for the entire Middle East.

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Yoon summoned again for questioning on treason charges

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A joint law enforcement team investigating South Korea’s martial law case announced on Friday that it has issued a second summons to ousted President Yoon Suk Yeol, requesting his presence for questioning next week. The inquiry concerns his alleged involvement in the failed implementation of martial law.

The team has scheduled the questioning for 10:00 a.m. next Wednesday at the Corruption Investigation Office for Senior Officials (CIO) headquarters in Gwacheon, located just south of Seoul. This marks the second summons after Yoon refused to cooperate with the initial notice earlier this week.

The decision to hold the questioning on a public holiday appears to be a strategic move by the CIO, likely aimed at addressing security concerns. The office confirmed that the summonses were delivered via express mail and electronically to both Yoon’s residence and the presidential office in Yongsan. Notably, after Yoon’s team refused to accept the first subpoena, the CIO opted against delivering the documents in person for this round.

The investigation focuses on Yoon’s role in the December 3 martial law declaration, which he revoked following a vote in the National Assembly. If Yoon continues to disregard the summons without valid justification, the CIO may seek a court order to detain him for up to 48 hours.

Yoon faces allegations of sedition and abuse of office, charges that have gained traction since his dismissal by parliament last Saturday. His suspension from office remains in effect pending a decision by the Constitutional Court, which will determine whether he is permanently removed or reinstated.

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Xi Jinping champions economic diversification during Macau visit

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During a three-day visit to Macau commemorating the 25th anniversary of its return to Chinese sovereignty from Portugal, President Xi Jinping emphasized the importance of economic diversification and maintaining the “one country, two systems” framework.

Speaking at the swearing-in ceremony for Macau’s new Chief Executive Officer, Sam Hou-fai, Xi urged the administration to make economic diversification the city’s primary focus. Sam, the fourth leader since the 1999 handover and the first mainland-born Chinese official to hold the position, is expected to align closely with Beijing’s objectives to reduce Macau’s reliance on gambling. The gambling industry, which accounts for approximately 80% of Macau’s tax revenue, has been the cornerstone of its rapid economic growth in recent years.

“Macau should prioritize proper economic diversification,” Xi stated, calling for enhanced policy support and investment in emerging sectors. He also reiterated the significance of the “one country, two systems” principle, stressing its role in ensuring the city’s “prosperity and stability” for the long term.

Xi’s visit included stops at the Macau University of Science and Technology, where he explored laboratories focusing on traditional Chinese medicine and planetary science. He also attended a cultural performance at the Macau Dome and met with local stakeholders, according to Chinese state media. His trip marked a shift in tone, with Anthony Lawrence, founder of Intelligence Macau, noting that it was the first time Xi publicly praised Macau for its progress rather than delivering critiques or instructions.

Since the liberalization of Macau’s gaming monopoly in 2002, the city has attracted significant foreign investment, including from prominent US casino operators such as Las Vegas Sands, MGM, and Wynn Resorts. However, the economy struggled during the COVID-19 pandemic due to travel restrictions, and recovery has only recently begun.

On Friday, Macau’s casinos were bustling with visitors, while non-gaming initiatives like a stamp exhibition co-organized by MGM China and Beijing’s Palace Museum showcased the city’s efforts to diversify its offerings.

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