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Uzbekistan stops transportation to Afghanistan over “breach” of contract

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Uzbekistan Railways has suspended rail transportation to Afghanistan from February 1, blaming the Taliban authorities for not fulfilling technical obligation as per an agreement signed between the two sides in December.

The company in a statement said that the Taliban failed to honor its technical work obligations.

“Considering that Afghanistan Railway Authority is unable to implement the agreed measures in time, please be advised that railroad shipments on the Galaba/Hairton – Mazar-i-Sharif line in Afghanistan’s northern province of Balkh will be suspended from February 1,” Interfax reported, citing the statement.

On December 26-30, the Uzbek and Afghan representatives met in Termez, a city in south of Uzbekistan on the border with Afghanistan and they agreed on a plan of phased technical work to be performed by Afghan railroad workers in Afghanistan by February 1, 2023.

During the meeting, Sogdiana Trans and the Afghanistan Railway Authority mutually also agreed on the list of works to be performed and their prices. They also reached consensus to sign a new contract by January 27 of this year.

Railway line was built in 2010

Uzbekistan Railway furthered that since the line was built in 2010, all services to the railway line have been provided by its subsidiary company Sogdiana Trans.

The company said “to support entrepreneurs and ensure continuous cargo transportation to Afghanistan, as well as to prevent delays in delivering essential goods to Afghanistan, Sogdiana Trans will give practical assistance in transporting cargo to Afghanistan by truck from Termez logistics centers and via the Termez river port,” the press service said.

It will be part of an effort to prevent the stoppage of transportation of essential goods to Afghanistan.

Uzbekistan Railways built the 75-kilometer Hairaton – Mazar-i-Sharif railroad worth $129 million in 2010. Sogdiana Trans was established a year later to operate and service this line.

Taliban security forces at Hairatan port between Afghanistan and Uzbekistan

However, just before negotiations with Uzbekistan Railways, the Taliban officials on December six last year, just two weeks before discussions, signed a contract with a Kazakhstani company, Mansour Fatih, to manage the Hairatan-Mazar-e-Sharif railway line.

Local media in that time in Uzbekistan reported that the Kazak Company would manage technical issues for the line.

Taliban yet to comment

The Taliban officials did not comment on the news so far and the stop on railway services would definitely impact negatively on the country’s already fragile economic situation.

However, the Taliban has tried its best to sign different contracts with foreign countries to manage its economy and also the office of the Deputy Prime Minister of the Economy had said that over the past 10 months, the nation’s exports have topped $1.7 billion and that revenue from this has been collected.

The office said that despite several difficulties including the freezing of Afghan assets and other restrictions on the banking system, they worked hard to keep the value of the Afghani currency against dollars and other foreign exchange.

The ministry also said that increase in exports has led to the surge in revenue.

Meanwhile, Ahmad Wali Haqmal, a spokesman for the finance ministry said that since March until the end of January 10, they have collected nearly 150 million Afs.

The majority of the revenue was from the customs office, according to him.

Revenue growth

Abdul Latif Nazari, the Deputy Minister of Economy, said that domestic and foreign revenue has grown 90%, and put two reasons behind them. One of the main reasons was the reduction in inflation and the second was the increase in exports from Afghanistan.

Nazari said that an unprecedented record has been broken.

The economic pundits believe that these revenues must be invested in improving infrastructural projects.

The Prime Minister’s office said that despite all the challenges including sanctions on the banking system, they were able to provide the salaries of around 800,000 employees from domestic budget and income.

Low-quality diesel

Moreover, the Afghanistan National Standards Authority (ANSA) said that they have returned four tankers of low-quality diesel back to Iran.

ANSA said that they stopped and returned these tankers at Islam Qala port in Herat province over poor quality of the fuel. The authority has taken practical steps to prevent the importation of low-quality oil.

ANSA also called on the traders to import goods in standard quality otherwise they will face the same consequences.

In early this month, the ANSA also sent 26 tankers of “poor quality” fuel back to Iran.

At the same time, Iran ambassador to Afghanistan, Hassan Kazemi Qomi said that Tehran has taken measures to facilitate the visa issuance to the Afghan businessmen.

Qomi in a tweet said that “with the aim of developing commercial-economic cooperation between Iran and Afghanistan, facilitating the process of issuing and receiving multiple-entry business visas will be accelerated for Afghan businessmen.”

Earlier, the Taliban Acting Foreign Minister Amir Khan Muttaqi in a meeting with the Iranian envoy appreciated Iran’s efforts for the facilitation of the visa issuance process, economic cooperation, securing the common border, and hosting Afghan immigrants.

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A passenger plane travelling from Baku to Grozny crashes in Kazakhstan

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A passenger plane travelling from Baku to Grozny in Kazakhstan crashed near the city of Aktau. According to Tengrinews, the crew signaled an emergency before the crash occurred.

The Ministry of Transport of Kazakhstan confirmed that the Embraer E190 aircraft, operated by Azerbaijan Airlines (AZAL), was carrying 62 passengers and 5 crew members. Among the passengers were 37 citizens of Azerbaijan, 16 citizens of Russia, 6 citizens of Kazakhstan, and 3 citizens of Kyrgyzstan.

Rescue teams from the Kazakhstan Ministry of Emergency Situations, along with 14 ambulances, were dispatched to the crash site. Reports indicate that 28 people have been rescued, including one child. The injured passengers were transferred to Mangistau Regional Hospital in Aktau, where Kazakhstan Health Minister Akmaral Alnazarova stated that the condition of six individuals was critical.

Preliminary investigations suggest the crash may have been caused by a collision with a flock of birds. Azerbaijan Airlines reported that the aircraft crashed near Aktau Airport while attempting to land on a spare runway.

According to officials from Grozny Airport, the aircraft was initially diverted to Makhachkala due to dense fog in Grozny, the capital of Chechnya, and later rerouted to Aktau. The crew signaled an emergency at 08:35, citing a malfunction in the aircraft control system. Emergency landing permission was requested at 08:49, and the crew attempted a manual landing in direct mode. However, the aircraft struck the ground at 09:28.

Authorities, including Rosaviatsiya (Russian Civil Aviation Authority) and aviation officials from Azerbaijan and Kazakhstan, are investigating the incident. A government commission was established on the instructions of Kazakhstan President Kassym-Jomart Tokayev to determine the cause of the crash.

In response to the tragedy, Azerbaijani President Ilham Aliyev cancelled his participation in the informal CIS Summit in Russia and decided to return to Baku.

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Trust issue: Pakistan and Afghanistan to boost up fraternal ties

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Pakistan’s Special Representative for Afghanistan, Ambassador Mohammad Sadiq, and his delegation, visited Kabul and held a series of talks with the top Taliban leadership, including interior and foreign ministries.

This is Sadiq’s first visit to Kabul after being assigned as Special Representative for Afghanistan and the reason for his visit was to enhance mutually beneficial cooperation in various fields and advance the fraternal ties between the two neighboring countries, Afghanistan and Pakistan.
Sadiq announced the trip on X, saying, “looking forward to meaningful discussions with Afghanistan’s interim ministers (Taliban officials) to strengthen mutually beneficial cooperation.”

During the trip, Sadiq first met with Sirajuddin Haqqani, the Taliban’s acting interior minister – who has lots of influence in Khost, Paktia and Paktika provinces. According to Pakistan, these provinces are the places of movement of Tehreek-e-Taliban Pakistan (TTP), and basically, Kabul and Islamabad relations deteriorated as Pakistan wants Afghanistan to smash on the movements of the TTP inside Afghan soil. However, the Taliban leadership says there are no TTP fighters in the country, and Taliban will not allow any group, including TTP to pose a threat to Afghanistan and to the regional countries.

During the meeting, Sadiq and Haqqani discussed a range of bilateral issues of common interest. Both sides agreed to strengthen bilateral cooperation in various fields to further enhance the fraternal relations between the two countries. The Afghan Ministry of Interior in a statement said that both sides discussed important topics for the improvement of relations between Afghanistan and Pakistan and the solution of existing problems. The Pakistani delegation also expressed their condolences on the assassination of Khalilur Rehman Haqqani, the uncle of Sirajuddin Haqqani and key member of the Haqqani network.

Sadiq first met with Interior Minister Sirajuddin Haqqain against diplomatic norms to first meet with Foreign Minister 

Khili Haqqani was the first Taliban official who entered Kabul when the Taliban overthrew the former Afghan government following withdrawal of US troops from Afghanistan after 20 years of presence. He has served as refugee minister since victory day on August 15 2021. He was killed by a Daesh suicide bomber inside his ministry compound.

Referring to the pessimism of the Taliban leader towards the Haqqani network, the former deputy of the European Union in Afghanistan, Michael Semple does not consider it unlikely that the members of the Taliban supreme leader were involved in the assassination of Khalil Haqqani. Michael Semple said that his assassination dealt a heavy blow to the Haqqani network and that the Taliban would likely pay a price for this.

The Haqqani family has denied the involvement of members of the Taliban supreme leader in the assassination of Khalil Haqqani. Haqqani family members insisted on the unity of the Taliban and the Haqqani family’s obedience to Hebatullah Akhundzadeh, the Taliban’s supreme leader. Their statements were made to deny rumors of differences or the involvement of people close to Hebatullah in Khalil Haqqanis assassination.

But Semple says that Hebatullah was particularly concerned about the Haqqani network’s contacts with Taliban opposition groups and foreign powers.

He added that Khalil Haqqani was more active in this field compared to other Taliban officials, because he had a political and social personality.

Semple said that Khalil Haqqani had connections with the Taliban opposition front and some foreign powers. According to him, although the Haqqani network, especially Sirajuddin Haqqani, have tried to convince the Taliban leader that they are aligned and united, Hebatullah has doubts about them.

He emphasized that Khalil Haqqani had contacts with Sirajuddin, which seemed “illegitimate” from Hebatullah’s point of view.” Sepmel reminded that Khalil Haqqani is not the first Taliban minister who was killed. During the first period of Taliban rule, Mullah Abdul Raqib was killed due to foreign contacts.

Former deputy of the European Union in Afghanistan underlined trust issue between Kandahar Taliban and the Haqqani’s 

The former diplomat. Sempel said that it is possible that the suicide bomber was a member of ISIS in the past, but he managed to assassinate Haqqani with the support of the Kandahar faction.

Sample clarified that the loss of Khalil Haqqani has put a serious blow to the Haqqani network, adding that Khalil Haqqani was one of the survivors of Jalaluddin Haqqani, the leader and founder of Haqqani network, who played a major role in the diplomacy of this network.

Pakistan Special Envoy Sadiq met with Foreign Minister Amir Khan Muttaqi, where they agreed to work together to further strengthen bilateral cooperation as well as for peace and progress in the region.

Meanwhile, Sadiq also met with Foreign Minister Amir Khan Muttaqi on Tuesday, where they held wide ranging discussions. “Agreed to work together to further strengthen bilateral cooperation as well as for peace and progress in the region,” Sadiq said.

The Afghan Foreign Ministry in a statement said both sides discussed bilateral relations between Afghanistan and Pakistan, enhancing diplomatic relations, trade, transit, and people-to-people relations.

Also, Sadiq met with Afghan traders and chamber representatives from across Afghanistan to discuss enhanced trade cooperation and economic ties, fostering a stronger bilateral relationship between Pakistan and Afghanistan.

The visit comes at a time where ties between Islamabad and Kabul have deteriorated in recent months, especially tensions have flared over the activities of the TTP, an armed group that has escalated attacks in Pakistan since the Taliban took control of Afghanistan in 2021.

Pakistani top officials, including Prime Minister and the country’s defense minister accused the Taliban of providing safe havens for TTP, an allegation the Taliban denied in strongest possible terms.

Pakistan says that Kabul allowed the TTP fighters to cross the border and carry attacks against the country’s security forces and border guards.

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China plans $411bn private treasury bond issuance in 2025

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Chinese authorities have approved a record issuance of 3 trillion yuan ($411 billion) in private treasury bonds for 2025, according to two sources cited by Reuters. The move signals Beijing’s commitment to using fiscal stimulus to address economic stagnation.

This represents a significant increase from the 1 trillion yuan issued this year and coincides with preparations for potential tariff hikes on Chinese imports as Donald Trump is expected to reassume the U.S. presidency in January.

The proceeds will target initiatives such as consumer subsidies, business equipment upgrades, and investments in innovation-driven sectors. According to the sources, who spoke anonymously due to the sensitivity of the issue, the plan underscores China’s proactive approach to offsetting deflationary pressures.

Officials from the State Council Information Office, Ministry of Finance, and National Development and Reform Commission (NDRC) did not immediately comment on the development.

Following the announcement, yields on China’s 10-year and 30-year treasury bonds rose by 1 basis point and 2 basis points, respectively. The planned issuance, the largest on record, demonstrates Beijing’s willingness to expand borrowing to stabilize the world’s second-largest economy.

China generally reserves ultra-long-term corporate bonds for extraordinary circumstances, reflecting the significance of this initiative.

Approximately 1.3 trillion yuan from the new issuance will fund “two major” and “two new” programs: A consumer subsidy program to encourage trade-ins for new vehicles and appliances, subsidies for large-scale business equipment upgrades, and infrastructure projects in critical sectors, including railways, airports, and farmland.

The NDRC reported that 70% of the proceeds from this year’s bond issuance funded major projects, while the remainder supported new schemes.

Another significant portion, exceeding 1 trillion yuan, will drive investments in advanced manufacturing, including electric vehicles, robotics, semiconductors, and green energy. Additionally, funds will recapitalize state-owned banks struggling with shrinking margins, declining profits, and rising non-performing loans.

The issuance will account for 2.4% of China’s 2023 GDP. For comparison, Beijing’s 2007 issuance of 1.55 trillion yuan represented 5.7% of GDP at the time.

The announcement follows the annual Central Economic Work Conference, where President Xi Jinping and senior officials outlined economic plans for 2025. The state media summary emphasized “steady economic growth,” raising the fiscal deficit ratio, and increasing government debt issuance, without detailing figures.

Recent Reuters reports indicate China may raise its budget deficit to a record 4% of GDP and aim for an economic growth target of around 5% next year.

China’s economy faces multiple headwinds, including a protracted property crisis, rising local government debt, and weak consumer demand. Exports, traditionally a growth driver, risk new U.S. tariffs of over 60%, threatening another economic lifeline.

Domestic consumption remains subdued, with households grappling with falling property values and minimal social safety nets. To counter weak demand, Beijing plans to expand its consumer and industrial equipment swap programs to more products and sectors.

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