Egyptian police fired tear gas and water cannon at stone-throwing protesters outside the presidential palace on Monday as the opposition rallied to mark the second anniversary of Hosni Mubarak's overthrow.

The clashes broke out after several hundred protesters marched to the palace, the site of increasingly frequent clashes, on a day of marches against Egypt's new Islamist president, Mohamed Morsi.

Police first used water cannon and then charged at protesters in armoured vans, firing volleys of tear gas.

Opposition groups called for the protests to demand that Morsi fulfill the goals of the revolution which brought him to power along with his long-banned Muslim Brotherhood movement.

Among their key demands are a new unity government, amendments to a controversial Islamist-drafted constitution and the sacking of Egypt's prosecutor general.

The interior ministry said an "angry minority" provoked the clashes when they tried to remove a barbed wire barricade at the gate of the palace in northern Cairo.

Activists are also furious that no one has been held accountable for the deaths of dozens of protesters in past months in clashes with police.

Monday's protests drew a far lower turnout than the anti-Morsi mass rallies of November and December, after the president adopted now repealed powers placing his decisions above judicial oversight.

About 1,000 protesters gathered in central Cairo's Tahrir Square, a protest hub. "The revolution continues" read some banners, as others chanted "After blood has been spilled, there is no legitimacy."

Protesters briefly blocked a major bridge as well as trains in a central metro station, scuffling with passengers and metro police, witnesses and state media reported.

A wave of deadly clashes swept Suez Canal cities around January 25, the anniversary of the start of the anti-Mubarak uprising, in which dozens of protesters were killed, prompting Morsi to call in the military.

Two years ago, Egyptians had poured onto the streets to celebrate after an aide to Mubarak announced the veteran president's resignation, buoyant that democratic change was within reach.

The 84-year-old's spectacular fall from grace on February 11, 2011 after an 18-day popular revolt sent shock waves across the Middle East and beyond.

But two years later, many are angry the main goals of freedom and social justice have not been achieved and that Egypt is polarised between Morsi's mainly Islamist supporters and a broad opposition.

Egypt has witnessed deadly violence, insecurity and price hikes, fuelling the political turmoil gripping the country.

Morsi has said a new government will be formed only after parliamentary elections in three or four months.

North Korea on Tuesday staged its most powerful nuclear test yet, claiming a breakthrough with a "miniaturised" device in a striking act of defiance to global powers including its sole patron China.

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A local Taliban leader was killed in a joint Afghan and Nato security forces operation in southern Kandahar province's Maiwand district on Monday, Isaf said.

"Tor Jan, also known as Graan, was a Taliban leader and facilitator who organised attacks against Afghan and coalition forces. He coordinated the use of improvised explosive devices, weapons and personnel for attacks in Maiwand district. The security force conducted a precision strike, killing him," Isaf said in a statement Tuesday.

The statement also said that an Islamic Movement of Uzbekistan (IMU) leader was arrested in a separate operation in Khanabad district of northern Kunduz province.

The leader facilitates distribution of weapons and assists in IED operations in the district, according to Isaf.

"The security force also detained one suspected insurgent and seized multiple firearms and ammunition as a result of the operation," it added.

Meanwhile, two Taliban commanders have been captured in joint Afghan and Nato operations in Kandahar and Ghazni province, Monday and Tuesday.

The first Taliban commander is believed to be responsible for the coordination of complex attacks. The other commander was allegedly a direct attack leader with some logistical and command responsibilities, Isaf said.

Three insurgents were also killed Tuesday in a joint security forces operation in Khogyani district of eastern Nangarhar province.

Australian Defence Minister Stephen Smith on Tuesday said that Australia's military contribution to Afghanistan post-2014 hinges on what the US decides to do.

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Fifty children with serious bone illnesses and burn injuries will leave Afghanistan tomorrow to receive medical treatment in Germany, officials from the charity Afghan Red Crescent Society (ARCS) said Tuesday.

The cost for the treatment of each child is expected to be more than 20,000 euros (US$27k) which will be paid by the Red Crescent and German government, according to officials.

Every year, around 150 children from different provinces across Afghanistan are selected by German doctors for the treatment abroad.

"This is a successful process and most of the Afghan children make a perfect recovery in Germany. It's a great gift for the families of the sick children and achievement for the Afghan Red Crescent," said Enayatullah Siddiqui, ARCS Protocol Officer, adding that most of the children return to Afghanistan after recovering.

The children transferred to Germany generally receive treatment for six months to a year.

Forty children who received treatment in Germany last year will be returning to Kabul on Sunday, Siddiqui said.

According to ARCS, in the past 20 years more than 10,000 Afghan children have been treated by Germany.

Panjshir and Balkh provincial authorities have rejected reports of illegal mining in their provinces after the Ministry of Mines (MoM) named them in a report on unofficial excavations.

Based on inspections from the MoM, the Office of the Administrative Affairs claimed last week that illegal excavation of Afghanistan's mines was happening countrywide, generally backed by local companies and officials in positions of power.

Panjshir officials on Tuesday said there is only one emerald mine in the province and that is paying its taxes to the government.

"There is not three mining areas, there's one, and that is emerald. Unofficial miners and powerbrokers would not be permitted to excavate at all. The other two areas mentioned are a pure lie," provincial spokesperson Abdul Kabir Waseq told TOLOnews in a phone interview.

"There is only an emerald mine being excavated and that holds a decree by the Ministry of Mines to pay a 15 percent tax," he said, adding that the total tax paid in the last two years is around $7 million.
The Administrative Affairs Office had claimed there were three mines in Panjshir.

"We have three mining areas [in Panjshir] including an emerald mine which is being excavated by powerbrokers and locals," the Office's head of monitoring and evaluation Sayed Ihsanuddin Taheri said last week.

In a separate statement, Balkh officials also rejected the illegal mining charge saying that proper procedures are carried out to monitor excavations.

"There are no powerbrokers in Balkh province to excavate the mines illegally. All of them have short-time contracts with us and use (the mines) legally," head of Balkh Mines Department Daad Mohammad said.

"There are occasions where their contracts come to an end but we provide permission for their activities [to continue] as asked by related officials, and we count such permissions as part of their contracts extended," he added.

But MoM officials have not backed down from their claims, in fact, it says it is looking at ways to make the mines legal.

"There has long been a mechanism for paying a 15 percent tax to the Ministry of Mines, but these mines still they don't have any license. The tax-paying act has been more traditional. Now the ministry is putting together a plan to legalise these mines in Panjshir, which will be implemented in the future," MoM spokesperson Tamim Asi said.

Asi added that the Panjshir governor's statement that MoM has not sent inspectors is false. The ministry sends professional geologists each year to study and examine different mining areas across the provinces, he said.

Aria basketball team beat Durikshan 55-50 in the first match of the Herat's basketball premier league Monday afternoon.

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Gen. Joseph Dunford on Tuesday met with President Hamid Karzai for the first time since taking over command of US and Nato troops in Afghanistan from Gen. John Allen.

"The intent of today's meeting was to pay respects to the President, reaffirm Isaf's support to the campaign, and continue the productive relationship between Isaf and the Government of the Islamic Republic of Afghanistan," Isaf said in a statement.

Isaf did not elaborate on what was discussed in the meeting.

Dunford took control of the Nato-led combat mission in Afghanistan on Sunday in an elaborate ceremony as outgoing Gen. John Allen departed after 19 months at the helm.

Karzai did not attend the handover, although other high-ranking Afghan government officials were present, including the Minister of Defence.

Speaking at the ceremony, Dunford praised the Afghan and international troops in Afghanistan saying they are "winning" the fight against the insurgency and stressed that this will not change with the leadership transfer.

"Today is not about change; it's about continuity. What has not changed is the will of this coalition," Dunford told a crowd of foreign and Afghan officials in Nato's Isaf headquarters in Kabul.

The US plans to withdraw most of its 66,000 troops by the end of 2014. Most of the other 30,000 troops from Nato-partner countries are also expected to leave.

Around 80 Afghan companies will transfer their company base from Pakistan to Afghanistan amid assurances that the government to help build their competitive edge in the global market, the country's leading investment agency said Tuesday.

The Afghanistan Investment Support Agency (AISA) said it also gave the businesses its guarantees of support.

"We commit to provide for them land, electricity, and other facilities so that they can compete with foreign products," AISA chief Wafiullah Iftikhar told TOLOnews.

Afghanistan needs to move away from its extreme economic dependency on outside sources, namely donor funds. Its domestic products still only supply a very small part of the domestic demand.

The Afghanistan Chamber of Commerce and Industries welcomed the news saying that it is likely to encourage many other investors to base their businesses in Afghanistan.

"It's not only investors coming from Pakistan. There are others who want to transfer their investments from China, Tajikistan, and Dubai to Afghanistan. They need support," said Khan Jan Alokozai, ACCI deputy.

The news comes amid fears of an economic crisis post-2014 when international troops and foreign companies are expected to withdraw from Afghanistan.

Afghanistan currently has a trade deficit of more than 90 percent.

Afghan President Hamid Karzai on Monday said in a closed Council of Ministers session that any high-ranking officials who nominate themselves to run in the presidential election must resign from their posts, according to a senior government official.

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There will be no "security gap" after foreign troops leave Afghanistan in 2014, the head of the government's Transition Coordination commission said Tuesday.

Chairman Ashraf Ghani Ahmadzai added that he does not see the upcoming presidential election as a challenge but rather as an opportunity.

"Intensive consultation and empirical work done from outside reveals that the security situation is not deteriorating," he said at the 19th meeting of the Joint Coordination and Monitoring Board (JCM) officials.

"Why am I bringing the story to your attention is because there is a prevailing perception that 2014 is going to be 1992. I want to categorically ask all of us to change our mental models: 2014 is going to be foundation of a decade of transformation. There is a national consensus in this country that we don't want to go back [to previous years]," Ghani said.

The United Nations special envoy Jan Kobish said at the meeting that Afghanistan's key challenges were corruption and drug smuggling.

"Corruption continues to be a major challenge affecting the lives of many Afghans, and strengthening justice sectors is fundamental to the overall governance agenda," he said.

"The elicit trafficking of narcotics continues to pose a threat to stability and sustainable livelihoods - the Ministry of Counter Narcotics must continue to be supported," he added.

Afghan Finance Minister said that the government is working on programs to monitor the spending of donor funds.

"Our aid management policy is being approved -- the policy will change the way aid is spent in Afghanistan," Minister Omar Zakhilwal said.

Meanwhile presidential senior advisor Hedayat Amin Arsala noted the need for good governance.

"As you know, good governance is basically the foundation of a successful transition of stability and sustainable development. Therefore it is important that all these governance measures are approved," he said.

A delegation appointed by President Hamid Karzai to investigate a United Nations report that torture was systemic in Afghanistan's prisons confirmed Monday it has found evidence of detainee torture, but it denied the abuse was systemic.

To watch the interview, click here

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On the cusp of US President Barack Obama's annual State of the Union speech where he is expected to reveal plans for US military withdrawal from Afghanistan, Afghan experts are divided on what they hope the news holds.

Afghan National Army spokesman Zahir Azimi told TOLOnews that the national forces are prepared to secure the country in the Americans' place.

"Afghan forces are certainly prepared. When we say they are prepared to complete the transition process, it means there will be no big issue after the international forces withdraw from Afghanistan," he said Tuesday.

"If there is any war on terrorism, there is the capability from us to control the war and dominate the situation," he added.

However, military analyst Gen Noorulhaq Oloomi said an ongoing presence of US troops will be crucial to Afghanistan's future.

"If the foreign forces are not present in Afghanistan, our soldiers won't have their salaries, our vehicles will have no fuel, and our weapons will have no ammunition. Afghanistan has yet not thought through how to provide such things from the government's budget," he said.

Abdulhadi Khalid, former deputy of security at the Ministry of Interior, agreed saying that insurgents outside Afghanistan remain a great threat.

"The Afghan forces have progressed well, but it's necessary to have the US and its troops for another decade to sustainability and supporting the Afghan forces," he said.

Associated Press reported late Tuesday night that Obama is expected to announce a withdrawal of more than half of the 66,0000 US soldiers in Afghanistan at the moment.

According to an anonymous source, Obama plans to have 34,000 troops leave Afghanistan within the next year.

The news comes the same day that the Washington Post quoted Pentagon officials saying there could be around 8,000 US troops in Afghanistan after 2014 to help combat insurgency who will withdraw completely over a three-year period.

The State of the Union address will be given in Washington on Tuesday night (US time).

Afghan Ulama Council said Tuesday that they have agreed with significant Pakistani scholars to hold an inter-Ulama Council meeting in Kabul next month.

The conference of the Islamic scholars will aim to discuss how to provide peace and security within both countries through religious matters.

According to the Afghan Ulama, the conference will host 500 scholars from both countries.

"We met the Pakistani committee with a group of seven people who were senior Ulama of Pakistan over two days. We agreed first, that Afghanistan and Pakistan Ulama will hold a conference in Kabul in March, and 250 Ulama from each country will attend - which is a total of 500 Ulama to participate," Afghan Ulama member Aminuddin Mozaffari said Tuesday.

A Pakistani delegation will visit Kabul late February to further discuss the conference agenda and plans, he added.

Meanwhile, US news syndicate McClatchy published a report that said some of the Pakistani scholars have rejected the conference plan unless the Taliban is part of it too.

The article said this rejection will bring new challenges to attempts to negotiate with the Taliban.

Mozaffari dismissed this comment, however, saying McClatchy's report held an opinion and there are always people who try to challenge the process.

Ulama member Mawlawi Mohammad Shafee Noorestani said the council is working where it can to contribute towards a solution.

"In order to find a solution for these challenges, the Ulama's work is beneficial to help solve the problem," he told TOLOnews.

The conference was originally to be held with Islamic scholars from across the Muslim world; however, the Afghan Ulama said the regional Afghan-Pakistani conference will decide if it is necessary to hold another conference with a global representation.

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Afghan President Hamid Karzai on Monday said in a closed Council of Ministers session that any high-ranking officials who nominate themselves to run in the presidential election must resign from their posts, according to a senior government official.

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At least ten civilians were killed in an airstrike conducted as part of a joint Afghan/Isaf military operation in eastern Kunar province on Tuesday night, local officials said.

Isaf has not confirmed the incident but acknowledged the reports.

"We are still at the point of gathering information on the alleged incident," an Isaf spokesman told TOLOnews Wednesday afternoon.

"We take these allegations very seriously."

According to Kunar officials, the airstrike took place in Shigal district of the province last night, killing five children, four women, and two men, provincial governor Sayed Fazlullah Wahidi told TOLOnews.

"We were not informed about the airstrike [beforehand] which was launched last night in the district," he said.

At least two Taliban insurgents were also killed in the airstrike and four others including three girls were injured, officials said.

Isaf's Wednesday operations update said an airstrike happened in Kunar on Tuesday, but it was a different district.

"Afghan and coalition forces killed two insurgents during an operation in Ghaziabad district, Kunar province, Tuesday," Isaf said.

"During the operation, the security force observed two individuals engaged in insurgent activity. The security force engaged the insurgents with a precision strike, killing both.

"A post-operation assessment determined no civilians were harmed and no civilian property was damaged during the operation," Isaf added.

Meanwhile, Taliban spokesman Zabihullah Mujahid has claimed that after the Shigal district airstrike, a clash happened between the Taliban, Nato and Afghan troops and several Afghan security forces were killed or injured.

He said no Taliban insurgents were killed or injured in the clashes.

Iran has welcomed Afghanistan's membership in the International Road Transport (IRT) Convention, according to its Urban Planning and Roads Ministry.

Iran ministry officials said that Afghanistan's membership will facilitate Afghan trucks travelling from Afghanistan to the Persian Gulf and European countries via Iran.

Both countries supported Afghanistan's membership in the fourth Afghanistan-Iran Transport Cooperation meeting in Kabul, where they also agreed on 17 points of transport facilitation between the two countries.

"We are interested in Afghanistan's membership in international transit routes which will pave the way for the development of transportation with Iran," Iran Deputy Minister Urban Planning and Roads Shahyar Afandizada said.

"By the implementation of these agreements, we are trying to solve the transit problems that come between the two countries," Afghan Deputy Minister for planning and policy in the Transport and Aviation Ministry Jariullah Mansory said.

The Afghanistan-Iran Transport Cooperation meeting began Tuesday and ran for two days.

The agenda covered simplification of ground transportation, avoiding delays for transit trucks in either country, modernisation of border crossings, and construction of a second Milak Bridge.

Afghanistan's Ministry of Transport and Aviation added that the government is aiming to use the IRT membership to improve cooperation with other countries in the region.

The Afghan Special Forces are ready to take on the most dangerous jobs, army chief of staff spokesman Gen Mohammad Akram said Wednesday as 81 soldiers joined the force.

At the SF graduation ceremony in Kabul, Akram said that the 81 troops have received a high level of training to be capable of any security operation in Afghanistan.

The 81 new recruits under went three months of intensive training and will be deployed around Afghanistan, he added.

"They are professionally trained and ready for any kind of operation in any condition," Akram said.

According to officials, Afghan special forces have launched 723 joint operations with Nato forces in the current Persian year [March 2012-March 2013].

New Kabul Bank will be auctioned on Saturday after months of securing interested buyers, Ministry of Finance (MOF) told TOLOnews on Wednesday.

Eight domestic and foreign companies will bid in the auction, MOF spokesman Wahid Tawhidi said.

He declined to name the companies but said there were five domestic companies among the eight.

"We will start the bidding on Saturday after lunch and we will announce New Kabul Bank's buyer and their price in front of civil society representatives and media," Tawhidi said.

The original date for the auction was set for 13 January, but this was extended on the request of some of the interested foreign companies to 16 February, he added.

President Hamid Karzai has welcomed the US president's announcement that more than half of the US troops deployed in Afghanistan will leave by this time next year.

"Afghanistan welcomes the announcement by President Obama, who in his State of the Union address said that the US would be pulling out another 34,000 troops over the next year from Afghanistan," Karzai's office said in a statement on Wednesday.

Obama said in his address, "This spring, our forces will move into a support role, while Afghan security forces take the lead."

"This is something Afghanistan has wanted for so long now. The withdrawal in spring of foreign forces from Afghan villages will definitely help in ensuring peace and full security in Afghanistan," Karzai's office said.

Nevertheless, it noted that it wanted the relationship with the American forces to continue.

"As Obama underscored America's commitment to a unified and sovereign Afghanistan beyond 2014, we hope the bilateral relations and cooperation between the two countries could further expand," it said.

The Ministry of Defence also supported the US decision.

"We welcome the US troop's withdrawal. The Afghan security forces are to take over combat and operations control in 2013 and they are ready to take security of the country," MOD spokesman Gen. Zahir Azimi told TOLOnews.

Obama said the plan was part of the American aim to end its involvement in the war by the end of 2014.

"Tonight, I can announce that over the next year another 34,000 American troops will come home from Afghanistan," he said Tuesday night in Washington DC. "This drawdown will continue. And by the end of next year, our war in Afghanistan will be over."

Meanwhile, US Defense Secretary Leon Panetta said in a statement the troop withdrawal plan was based on a recommendation from Marine Gen. John Allen, who just ended his command of US and Isaf forces in Afghanistan.

The withdrawal is the latest phase in a transition plan that the US, Afghanistan and allies developed at recent Nato summits in Lisbon, Portugal, and Chicago.

The number of US troops has already declined from a high of about 100,000 in 2010 to 66,000 now.

This year is expected to be a critical test for Afghan security forces who are now leading 90 percent of the operations and taking the bulk of the casualties.