CIVIL - MILITARY FUSION CEN TRE Afghanistan Review Week 17 28 April 2011 Comprehensive Information on Complex Crises INSIDE THIS ISSUE This document provides a weekly overview of developments in Afghanistan from 20 April—27 April 2011, with hyper-links to source material highlighted in blue and underlined in the text. For more information Economic Development on the topics below or other issues pertaining to events in Afghanistan, feel free to contact the members of Governance & Participation the Afghanistan Team, or visit our website at www.cimicweb.org. Humanitarian Affairs Infrastructure Rule of Law Economic Development Steven A. Zyck ► [email protected] Security Socio-Cultural Development his week, an Afghan firm based in Du- Board of Revenue (FBR) is exploring ways to bai, known as the Alokozay Group of tax Afghan traders operating in the western Companies (AGC), announced a series Pakistani city of Peshawar. Around 12,000 ABOUT THE CFC T of major investments in Afghanistan. Tolo Afghan businesspeople are based in Peshawar The Civil-Military Fusion Centre News reported that AGC intends to invest but currently pay no tax given the Pakistani (CFC) is an Information and USD 60 million in a project to produce Pep- government's lack of policy on the taxation of siCo products in Afghanistan. The production foreigners. The area's business association, the Knowledge Management facility is expected to begin operations in Sarhad Chamber of Commerce and Industry organisation focused on March 2012 and will create up to 800 jobs. (known as KPCCI), has strongly advocated for improving civil-military interaction, The Afghanistan Chamber of Commerce and Afghan traders to be taxed. FBR officials sug- facilitating information sharing and Industries (ACCI) indicated that the factory gested that they had received pressure from enhancing situational awareness will not only produce beverages for the Af- the Pakistani business community to tax Af- through the CimicWeb portal. ghan market but also for export to other coun- ghan traders and prevent them from gaining an tries within the region. Meanwhile, an AGC unfair commercial advantage. CFC products are developed with representative told Gulf News that the com- open-source information from a pany is planning a range of additional invest- In a related story, the ACCI told Tolo News wide variety of organisations and ments in Afghanistan totalling approximately that Pakistani officials had declined to discuss media sources. USD 300 million. These investments include trade-related problems between Afghanistan purchasing a bank and establishing facilities to and Pakistan. Earlier this year the Pakistani The CFC is represented in Kabul by produce pharmaceuticals and tissue paper. government pledged to release all Afghanistan a Forward Military Liaison Officer, -bound shipping containers held in Karachi, Maj. Gary Evans, who is embedded The Afghan government will be handing over but the ACCI contends that many containers USD 570 million in fraudulent loans made by still remain stranded in Pakistan. The continu- within ISAF. the crisis-stricken Kabul Bank to the Financial ing trade tensions between Afghanistan and By design, CFC products or links to Disputes Resolution Commission (FDRC), Pakistan have, according to The News, led which will then attempt to collect as much of Pakistani merchants to bypass Afghanistan independently produced articles do that amount as possible, reports Bloomberg. and export their goods via a longer land route not necessarily represent the The remainder of Kabul Bank's assets will be through Iran. A decline in transit trade through opinions, views or official position privatised in the next three months and sold to Afghanistan could pose a major challenge for of any other organisation. private international and/or Afghan inves- the Afghan government, which relies on cus- tors. However, despite progress in determining toms and transit trade fees for much of its do- . CONTACT THE CFC the future of Kabul Bank, efforts to prevent mestic revenue (i.e., that not provided by for- further banking scandals in Afghanistan are eign donors). For further information, contact: facing major obstacles. Legislation which Afghanistan Team Manager would have disallowed shareholders from Greater progress was made in resolving cross- Erin Foster managing banks or influencing decisions re- border trade issues with Tajikistan, notes the Asia Plus news agency. Tajik Railways, the [email protected] garding lending – two practices which crip- pled Kabul Bank – has been rejected by the state-owned company that manages rail lines Afghanistan Editor Afghan cabinet. The legislation was reportedly in Tajikistan, has expressed a willingness to Amber Ramsey opposed by powerful Afghan business owners. negotiate the recently-increased fees charged [email protected] on goods imported into Afghanistan via Taji- Trade-related tensions between Afghanistan kistan. Tajik Railways has suggested that it The Afghanistan Team and its neighbours continued to receive media might lower the rates if it was guaranteed a [email protected] attention this week. According to a Pakistani particular level – in tonnes per kilometre – of newspaper, The News, Pakistan's Federal rail shipments per year to Afghanistan. Governance & Participation Anne-Catherine Claude ► [email protected] uring an operational update at the International Secu- rity Assistance Force (ISAF) Headquarters in Af- Following the recent suicide attack on a Ministry of Defense ghanistan, ISAF‟s spokesperson Brigadier-General (MoD) compound (see 20 April CFC Weekly Afghanistan D Review, Security section), Noor TV reports that Members of Josef Blotz warned that district-level Afghan government offi- cials have become the main target for in- Parliament (MPs) have summoned the surgents. According to the press release, Defense Minister, Interior Minister and Blotz emphasised that due to the counter- “The Wolesi Jirga (Lower House of Chairman of the National Security Direc- insurgency strategy, the insurgents are torate to brief them on the attack as well as low on recruits, weapons and supplies. He Parliament) once again rejected the the overall security situation in Afghani- stan. According to the article, Minister of also added that “the insurgents are no budget for the new financial year”. longer prepared, able or willing to ac- Defense General Abdul Rahim Wardak tively confront ISAF and Afghan Security admitted shortcomings but declared that Forces”, which has led them to instead the attacker was not an official of the target district officials. The press release MoD. Tolo News adds that following the notes that over the past couple of weeks, a series of attacks meeting Afghan senators urged the Defense Minister to resign, took place against government officials, civil servants and arguing that “we should convince him that he is the one who tribal elders. In the latest wave of attacks, Tolo News reports should be blamed and that he is no longer of use. He should that Haji Zahir Arian, the former district chief of Marjah and honourably quit his post”. MPs have also called for the prose- the deputy of the provincial peace council in Helmand prov- cution of Kandahar security officials following the prison ince, was killed by gunmen on 25 April. The attack occurred in break in Kandahar province (see Security section), says the provincial capital of Helmand province, Lashkar Gah. Tolo Pajhwok. The article states that some members of the Mesh- News adds that Lashkar Gah is also one of the seven locations rano Jirga (Upper House of Parliament) believe that prison expected to have security responsibility handed over to the guards and security officials were involved in the prison break and as such should be brought to trial. Afghan forces in July 2011. Afghan President Hamid Karzai denounced the killing of the High Peace Council member, and During its 24 April session, the Wolesi Jirga (Lower House of according to a statement released by the Office of the Presi- Parliament) once again rejected the budget for the new finan- dent, he declared that this incident has once again unmasked cial year, which began on 21 March. The MPs decided to vote "the ugly face of Afghanistan's enemies, who are used by out- against the budget because “many of the plans were different siders to destroy the country and kill its brave people". He also from the Afghan National Development Strategy (ANDS)”, urged the perpetrators to be brought to justice, says Pajhwok says Shukriya Barakzai, an MP from Kabul. Meanwhile, the Afghan News. Another Pajhwok article reports that the gover- Speaker of the House, Abdur Rauf Ibrahimi, declared that the nor of Paktiya province, Juma Kahn Hamdard, survived a proposed budget has flaws that should be considered and ad- bomb attack on 26 April. dressed before the Wolesi Jirga can approve it. Humanitarian Affairs Erin Foster ► [email protected] early 100 asylum seekers and detainees in Australia explained to ABC News that the involuntary return of Afghans initiated a riot last week at the Villawood Detention “would violate the agreement because there is not enough se- Centre in Sydney, as reported by the Associated curity and development in Afghanistan”. N Press. The Centre houses more than 400 asylum seekers and those who have overstayed their visas, with the majority origi- Afghan government authorities and UNHCR continue to assist nating from Afghanistan, Iraq and Sri Lanka. The recent vio- Afghan