International integration

New agreements between Kazakhstan and Afghanistan: joint bank and direct flights

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On June 25, 2019, business and official people of Kazakhstan and Afghanistan gathered in Kabul, Islamic Republic of Afghanistan, to participate in an annual trade and economic mission. The most actual issues discussed were creation of a joint bank for businessmen and opening of direct air flights between two countries. To know more about the potential of trade and economic cooperation between Kazakhstan and Afghanistan, we interviewed Deputy Chairman of Kazakhstan’s Chamber of International Commerce Nuraly Bukeikhanov. Read more on the website of the Strategy2050.kz Information Agency.
Nur-Sultan04 July , 10:03

- Nuraly Alimovich, in a few words tell about the potential of trade and economic cooperation between Kazakhstan and Afghanistan?

- Due to geographic position and economic specialty on grain and oil production, Kazakhstan has always been the natural trade partner of Afghanistan. The potential of trade and economic cooperation between Kazakhstan and Afghanistan is rather big, this is evidenced with very short distance between two countries, which is only 800 km. Afghanistan is a very big target market for Kazakhstan’s food products, which is more than 40 million people highly appreciating Kazakhstani products.

- Is Kazakhstan an attractive partner for Afghanistan?

- Kazakhstan is one of key partners for Afghanistan (4th place following Iran, Pakistan and China), and the share of Kazakhstani products in Afghani import is 7.9%. The significant part of Kazakhstani agricultural products is exported to Afghanistan.

- Please, state figures concerning trade turnover between the two countries?

- Following the results of 2018, commodity turnover between the countries was USD 520.6 million, including export – USD 516.4 million and import – USD 4.2 million.

- Which Kazakhstani products are exported to Afghanistan mainly?

- Base quantity of Kazakhstani export to Afghanistan is formed due to sales of flour, wheat and liquified gas. Thus, for example, only during 2018, Afghanistan imported flour, wheat and liquified gas from Kazakhstan for the amount of USD 277.6 million, USD 64.7 million and USD 27.2 million, respectively.

- How many joint ventures do exist in Kazakhstan?

- As of May 1, 2019, 321 legal entities and representative offices have been registered in Kazakhstan with Afghani participation, of which those who are effective are 182. These organizations are represented in mining and processing industry, as well as in trading.

- How will opening of a joint bank and direct flights affect the development of relations between the countries?

- Unfortunately, as of today, there are some complications in part of settlements between entrepreneurs of two countries, opening of a joint bank or financial institution which would regulate the issues of delivery insurance would promote increase of commodity turnover between the countries, also increase of entrepreneurs’ flow, and in view of this, increase of commodity turnover will serve to open a direct flight connection between Kazakhstan and Afghanistan, as there is no direct flight to date. This poses a barrier for entrepreneurs to study the market, conduct negotiations etc.

- Thank you for the interview!

Saltanat Sarina

 

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