KABUL, Dec 23: Afghan President Hamid Karzai has appointed a new cabinet which pushes out warlords and installs technocrats capable of fighting drugs and driving reform, the presidential palace said Thursday.

Mr Karzai dropped two major Northern Alliance figures, the palace said, officially announcing the cabinet line-up. Former defence minister Mohammed Qasim Fahim and Yunus Qanooni were pushed out.

Mr Karzai picked out highly educated ministers and also cut the number of ministries to 27 from 30. "Nine of the ministers have PhDs," a government source said, adding Mr Karzai had chosen an ethnically balanced cabinet.

However, Mr Karzai retained former warlord Ismael Khan who was ousted as governor of Herat in September. He steps in as minister of energy. Abdullah Abdullah has been retained as foreign minister but Ashraf Ghani Ahmadzai has been dropped as finance minister. Appointed in his place is Anwarul Haq Ahady, who was praised by the west for his work in setting up Afghanistan's central bank.

The only female candidate in Afghanistan's first democratic presidential election, Masooda Jalal, won a place at the head of the Ministry of Women's Affairs. Another appointment likely to win plaudits from the west is Abdul Rahim Wardak, as the new defence minister.

Mr Karzai kept Ali Ahmed Jalali as interior minister in another apparent boost for reformists who are pushing for a stronger central government to restore law and order and curb the burgeoning opium industry.

He also picked out engineer and former deputy minister of refugees Habibullah Qaderi as anti-narcotics minister. Following is the list of other ministers in the new government, announced by the Presidential Palace:

Commerce Hedayat Amin Arsala; National Security Adviser Dr Zalmay Rasool; Education Noor Mohammed Qarqeen; Economy Dr Mohammed Amin Farhang; Transport Dr Enayatullah Qasemi; Communication Amirzai Sangeen; Mines and Industry Mir Mohammed Sediq; Public Works Dr Suhrab Ali Safari; Urban Development Yusuf Pashtun; Agriculture and Food Obaidullah Ramin; Justice Mohammed Sarwar Danish; Higher Education Dr Amir Shah Hasanyar; Information and Culture Dr Sayed Makhdum Rahin; Public Health Dr Sawed Mohammed Amin Fatemi; Haj and Islamic Affairs Prof Namatullah Shahrani; Border Affairs Mohammed Karim Brahoye; Social and Labour Sayed Ekramuddin Agha; Refugees Mohammad Azam Dadfar; Martyrs and Disabled Sediqa Balkhi and Rural Development Mohammed Hanif Atmar. -Agencies