During the three-year rule of the I.E.A, significant achievements have been made in the economic sector, alongside other areas
With the re-establishment of the Islamic Emirate, the economic situation, which was facing serious threats, is now on the path of progress. The Afghan currency has not only remained stable against foreign currencies but has also appreciated in value against some of them. The banking system has been rescued from collapse, and large-scale infrastructure projects have been initiated across various sectors. The export rate has doubled since the Islamic Emirate took power, trade has advanced, and the extraction and processing of large, medium, and small-scale mines are ongoing. The prices of basic food items have decreased, and there has been a noticeable increase in domestic food production. Despite the expansion of government institutions, hundreds of thousands of job opportunities have been created in mining and public welfare projects. The Gross Domestic Product (GDP) has increased, national revenue has seen substantial growth, the national budget has been funded through domestic revenue, and numerous facilities have been established in the transit sector, along with the rehabilitation of major roads.
The Islamic Emirate has created an enabling environment for both domestic and foreign investment in the sectors of mining, electricity, agriculture, transport, telecommunications and technology, industry, banking, and trade. Currently, dozens of domestic and foreign companies are actively investing in various sectors, and many other companies have expressed interest in investing.
Over the past three years, the Islamic Emirate has undertaken fundamental work in the following sectors, creating opportunities for investment in these areas.
1. Mining Sector
According to initial surveys, Afghanistan possesses natural resources valued at approximately three trillion dollars. The Islamic Emirate has prioritized investment in the mining sector, focusing on the professional extraction and processing of these resources. Over the past three years, the extraction and processing of around 200 different mines have commenced, and the geophysical studies of dozens more have been completed, with work underway to initiate practical operations. Key projects include:
- Amu Darya Oil Basin;
- Mes Aynak Copper Mine;
- Four blocks of the Ghorian Iron Mine in Herat;
- Lead Mine in Tolak District, Ghor;
- Samti Gold Mine in Takhar;
- Emerald Mines in Panjshir;
- Chromite Mine in Logar;
- Zarkashan Gold Mine in Ghazni;
- Gypsum Mine in Wardak;
- Dara-e-Suf Coal Mine in Samangan;
- Balkhab Coal Mine in Sar-e-Pul;
- Salt extraction and processing;
- Bamyan Coal Mine;
- Precious Stones Mine in Nangarhar;
- Gas reserves in Jawzjan;
- Cement factories in Kandahar, Herat, and Jabal Saraj.
In addition, the extraction and processing of various other mines have begun in different provinces.
Moreover, opportunities for domestic and foreign investment have been created in dozens of large, medium, and small-scale mines. Notable examples include:
- Hajigak Iron Mine in Bamyan;
- Katwaz and Helmand Oil Basins;
- Herat Oil Basin;
- Dasht-e-Qala Gold Mine in Takhar;
- Sheida Copper Mine in Herat;
- Balkhab Copper Mine in Sar-e-Pul.
2. Electricity Sector
Afghanistan has the capacity to generate over 300,000 megawatts of electricity. Of this, 222,000 megawatts can be produced from solar energy, 66,000 megawatts from wind energy, 23,000 megawatts from hydropower, and 4,000 megawatts from biogas/biomass energy.
Despite its abundant natural resources for electricity generation, Afghanistan has struggled to provide full access to electricity, even in urban areas, due to years of occupation and conflict. The Islamic Emirate has prioritized this sector, facilitating both domestic and foreign investments. Over the past three years, hundreds of megawatts of hydropower and solar energy have been produced.
Completed and ongoing projects under the Islamic Emirate in this sector include:
- Completion of the second phase of Kajaki Dam;
- Imminent completion of the remaining work on Kamal Khan Dam;
- Initiation of practical work on Bakhshabad Dam;
- Resumption of remaining work on Shah Wa Aros Dam;
- Initiation of the remaining work on Pashdan Dam;
- Commencement of the 500 kV power transmission line from the north to the south of the country;
- Completion of the 110 kV power transmission line from Kajaki to Kandahar;
- Initiation of work on the Managi Dam in Kunar, Chak Wardak Dam, and Tori Dam in Zabul;
- Imminent commencement of the CASA-1000 project;
- Solar power generation projects in Kabul and many other provinces;
- Construction and rehabilitation of substations in various provinces;
- Extension of the 220 kV transmission line from Turkmenistan to Herat province.
The Islamic Emirate has created investment opportunities in the following hydropower projects:
- Gambiri Irrigation and Power Project;
- Surobi 2 Dam;
- Baghdara Dam;
- Shah Tut Dam;
- Dahla drinking water supply, irrigation, and power generation project;
- Kabul-Panjshir drinking water project.
There are also investment opportunities in solar power generation in the following provinces:
- Laghman, Ghor, Nimroz, Paktika, Khost, Farah, Daikundi, and several others.
For wind power generation, investment opportunities exist in the following projects:
- Wind power projects in Mazar-e-Sharif, Parwan, Herat, and other provinces.
3. Agriculture Sector
Agriculture plays a crucial role in the economic stability of Afghanistan and is considered one of the key factors in economic growth. It constitutes one-third of the country's total domestic production value. A significant portion of the nation's workforce is engaged in agriculture, deriving their income from this sector. Most of Afghanistan's export commodities are agricultural products, and over the past three years, a large portion of the exports has been made up of these products. The Islamic Emirate, over the past three years, has aimed to mechanize the agricultural sector by implementing effective and timely plans, leading to the production of high-quality agricultural goods in greater quantities, creating employment opportunities, partially meeting domestic needs, and increasing the level of exports.
Additionally, for the past year, the Deputy PM for Economic Affairs Office, with the assistance of Afghan specialists, has been working on the country's national development strategy. After the approval of this strategy by His Excellency the Amir al-Mu'minin Sheikh Hibatullah Akhundzada, it will be implemented, allowing Afghanistan to mechanize its agriculture and move towards industrialization.
Over the past three years, a safe environment for domestic and foreign investment in the agricultural sector has been established, with ongoing efforts to enhance this area. Practical work has also begun on water management projects, with notable examples including the Qosh Tepa Canal, Kamal Khan Dam, Pashdan Dam, Shah Wa Aros Dam, Bakhshabad Dam, and the Amu River embankment reinforcement projects.
With the re-establishment of the Islamic Emirate, investment opportunities in the agricultural sector have emerged in the following projects:
- Fruit processing centers;
- Cold storage facilities for agricultural products;
- Greenhouses;
- Irrigation systems;
- Nangarhar Canal irrigation and infrastructure rehabilitation program;
- The fifth zone of the Amu River.
4. Transport Sector
Significant work has also commenced in the transport sector, particularly in the reconstruction of major highways. These projects include the Kabul-Kandahar Road, Salang Pass, Wakhan Corridor, Herat-Ghor Road, Kandahar-Uruzgan Road, the reconstruction of roads in Kabul and other first-tier provinces, and the construction of roads in some second-tier provinces. Additionally, efforts are underway to extend roads from provincial centers to remote districts. The rapid progress of these projects also includes the expansion of the railway network, connecting Afghanistan with neighboring and regional countries.
One notable project is the Afghan-Trans initiative, which, upon completion, will facilitate the shortest transit corridor between China and Europe, connecting South and Central Asia. Moreover, work is actively ongoing on the second section of the fourth phase of the Khaf-Herat railway.
The Islamic Emirate has also created investment opportunities in the transport sector with the following projects:
- The Andkhoy-Shiberghan, Torghundi-Herat, Kandahar-Spin Boldak, Herat, Farah, and Laram railways;
- The Kabul city ring road;
- The construction of terminals along major highways.
5. Telecommunications Sector
Over the past three years, the Islamic Emirate has achieved significant progress in the telecommunications sector. Notable accomplishments include the installation of hundreds of telecommunications towers across the country and the expansion of internet networks to remote areas.
Furthermore, investment opportunities in both domestic and foreign sectors have been created in the following areas within the telecommunications sector:
- Expansion of the national fiber optic network to all provinces;
- Establishment of the RTDMS system to ensure revenue transparency;
- Mobile phone registration with the government through a special code.
6. Industrial Sector
Over the past three years, the industrial sector has received special attention alongside other areas. The Islamic Emirate has actively encouraged, supported, and ensured the security of private investments and enterprises within the country. Currently, Afghanistan has production capabilities in various sectors, including agricultural products, pharmaceuticals, foodstuffs, handicrafts, and other areas, totaling 24 different industries.
Investment opportunities have been created within Afghanistan's industrial sector, allowing both domestic and foreign investors to invest in the following areas: Chemical industries, construction materials, machinery manufacturing and metal industries, pharmaceutical industries, printing industry, carpentry and paper manufacturing, light industries, food processing industries, and various other industrial sectors.
7. Banking Sector
Over the past three years, the Islamic Emirate has made significant strides in the banking sector, similar to other areas. Key achievements include:
- Providing banking services to remote areas of the country;
- Improving the operations of the banking sector;
- Promoting transactions in Afghanis nationwide and restricting foreign currencies;
- Increasing the value of the Afghani against foreign currencies;
- Printing and circulating new Afghan banknotes while withdrawing and destroying old notes;
- Implementing Islamic banking practices;
- Settling old guarantees, receivables, and claims;
- Developing payment and information technology systems;
- Reducing inflation to desirable levels;
- Gradually easing restrictions on customer deposits;
- Addressing liquidity issues in private banks;
- Activating the commission for difficult-to-obtain loans;
- Establishing regulations by the Central Bank of Afghanistan for microfinance institutions;
- Prioritizing financial cases in the courts;
- Distributing the salaries of Emirate employees through banks to strengthen the banking system;
- Collecting revenues through banks.
The Islamic Emirate has created numerous investment opportunities for both domestic and foreign investors in the development and promotion of Islamic banking within the country and encourages investment in this sector.
8. Trade Sector
In the past three years, the Islamic Emirate has significantly enhanced the trade sector in the country. Various improvements and facilities have been established, including:
- Utilizing alternative trade routes;
- Expanding industrial parks;
- Establishing trade chambers;
- Reducing tariffs on raw materials;
- Organizing national and international exhibitions;
- Waiving financial penalties;
- Providing 24-hour services at customs;
- Opening air corridors;
- Improving major road transport standards;
- Setting up standard laboratories for quality control of goods;
- Modernizing customs and offering electronic services;
- Facilitating transit procedures;
- Expanding and rehabilitating railway networks;
- Creating joint trade markets with neighboring countries at border areas.
Currently, exports continue normally to around 80 countries across 24 trade sectors. A significant portion of these exports comes from 13 provinces in the country.
Afghanistan's exports reach not only Iran, Pakistan, India, China, Kazakhstan, the UAE, Uzbekistan, Turkey, Iraq, and Tajikistan but also Arab and European countries.
Moreover, export processing zones are being established in Kabul, Kandahar, Herat, Nangarhar, Balkh, and Paktia provinces, each allocated 100 acres of land. The land transfer and ownership processes are completed, and these zones will soon be used to standardize the country’s exports.
The establishment of these zones will facilitate the packaging, processing, and standard transportation of commercial goods according to existing standards, creating around 100,000 job opportunities.
In provinces with high export volumes, processing offices for export documents have been set up, reducing processing time from 4 days to 40 minutes.
Additionally, to ensure transparent and accepted exports, the Islamic Emirate has equipped all customs offices with modern technology and continues to make further efforts in this area. These actions have had a noticeable positive impact on the quality and quantity of exports.
Investment opportunities in the trade sector provided by the Islamic Emirate include:
- Developing standard transportation;
- Modernizing customs;
- Establishing processing and packaging centers for agricultural products;
- Setting up standard laboratories for quality control of goods;
- Constructing warehouses;
- Expanding and developing industrial parks.
9. E-Governance
The Islamic Emirate has created investment opportunities in the e-governance sector in collaboration with the private sector in the following areas:
- Revenue Collection Systems;
- Licensing Systems;
- Vehicle Speed Monitoring Systems;
- GPS Systems in Transport Vehicles;
- High-Tonnage Vehicle Monitoring Systems;
- Cargo Truck Scanning Systems;
Afghanistan has become the most viable and secure route for transit and energy transfer between Central and South Asia. The Islamic Emirate has facilitated the implementation of key projects such as TAPI, CASA-1000, TUTAP, and TAP.
Beyond the sectors mentioned, the Islamic Emirate offers various investment advantages and opportunities in Afghanistan, including:
- Supportive Government for Investment;
- Young, Skilled, and Affordable Workforce;
- Low Business Costs;
- Access to Global Markets through Regional Connections;
- Bilateral and Multilateral Trade Agreements;
- Underutilized Market with Few Competitors;
- Membership in World Trade Organization;
- Trade Dispute Resolution Center;
- Comprehensive Security;