Investment and Its Importance in Eliminating Unemployment
By Fazal Wali Shirani
Introduction
Afghanistan’s economy has been severely damaged due to occupation and wars, political and security instability, as well as the recent droughts affecting the country. During this period, the country faced significant upheavals, crises, occupation, and disorder. Another contributing factor is the recent forced return of Afghan refugees from neighboring countries, which is likely to negatively impact the national labor market.
In order to ensure the country’s development and accelerate economic growth, it is essential to provide employment opportunities for the people. To create job opportunities, large, medium, and small-scale projects must be initiated in various infrastructure sectors. Although such projects are currently underway across the country, they are not at the scale necessary to fully establish economic stability and eliminate unemployment.
One of the most critical elements that can address these challenges is attracting and mobilizing investment. If, in addition to domestic investment, foreign investment is also brought in, it will be possible to both strengthen the national economy and significantly reduce unemployment.
Although the Islamic Emirate has succeeded in attracting investment in sectors such as infrastructure, railways, cement production, oil extraction, and mining, it has not stopped there. It continues to strive to attract even more domestic and foreign investment. The following discussion highlights how important investment is in eliminating unemployment.
The Importance of Investment in Eliminating Unemployment
Unemployment is a major issue not only in developing and underdeveloped countries but also in developed nations across the world. Every country strives to increase labor demand in order to reduce unemployment rates. However, many countries have still not been able to completely resolve this issue.
In Afghanistan, decades of instability—spanning nearly four decades—have significantly contributed to a high unemployment rate. As a result, the population has faced and continues to face numerous economic challenges. Unemployment not only brings severe economic consequences, but it also weakens a nation socially.
Currently, the unemployment rate in Afghanistan is not a new problem—it was significantly high even under previous governments. During the administration in Kabul, unemployment reportedly reached over 70%, despite the presence of numerous foreign organizations, NGOs, and construction companies operating in the country.
The Islamic Emirate has recognized the negative consequences and far-reaching impacts of unemployment. Therefore, it has concentrated its efforts on addressing this problem and working to eliminate the root causes of joblessness. One of the main causes in this regard has been the lack of investment.
Historically, Afghanistan lacked an enabling environment for investment, which adversely affected the national economy and contributed to high unemployment. Had investment opportunities been made available earlier, the country would have seen substantial progress in many sectors.
Nonetheless, there is still time to reverse the situation. Despite the challenges faced—such as international sanctions and other pressures—the Islamic Emirate has, since its return, achieved significant milestones in economic development, particularly in attracting investment. It has taken concrete steps in this area.
So far, various countries and foreign companies have shown interest in investing in different infrastructure, public service, and utility sectors. Some have already initiated practical operations. Investment has been mobilized across industries such as trade, infrastructure, mining, and more. Some investment projects are already under implementation.
For example, we can point to several electricity generation projects with a total capacity of 261 megawatts. These include a 22.7 MW solar power project in Surobi district of Kabul province, a 40 MW solar power project in Dehdadi area of Balkh province, a 5 MW solar power project in Herat province, a 10 MW solar power project in Laghman province, a 43.2 MW wind power project in Herat province, a 40 MW solar power project in Mohammad Agha district of Logar province, a 40 MW solar power project in Sheikh Mesri Industrial Park, Nangarhar province, a 50 MW gas power project in Sheberghan, Jowzjan province, and a 10 MW solar power project in Surobi district of Kabul province, which has already been offered for use.
These projects collectively have a production capacity of 261 megawatts and involve a total investment of 23.7 billion Afghanis. Once these projects are completed and operational, they will help address the electricity shortages of various industrial parks and the general public and will contribute to the advancement of industrial operations.
Beyond these mentioned projects, both domestic and foreign investors have shown interest in electricity generation projects using solar, wind, coal, and gas, which are expected to be implemented in the future.
Currently, Afghanistan has newly entered the phase of economic growth and development. However, like some other countries, we face a shortage of capital. Therefore, all available means that can support our economic development, progress, and prosperity must be utilized.
As mentioned earlier, one of the most effective tools in this regard is investment. If we manage to attract investment in accordance with national laws, we can begin implementing infrastructure projects, extract natural resources, strengthen industry, mechanize agriculture, and put various other sectors on solid footing.
As a result, we will genuinely possess a strong economy, and our country will be on the path to development. Attracting investment will not only accelerate economic growth but will also create job opportunities for citizens within the country, bringing the unemployment rate close to zero.
Conclusion
Investment plays a vital role in reducing unemployment, as it is a primary driver of economic growth and the creation of job opportunities. With increased capital investment, direct employment opportunities are generated. When investments are made in sectors such as industry, agriculture, technology, and infrastructure, new factories, projects, and businesses are established. Investment directly increases employment opportunities and reduces unemployment.
Moreover, investment raises the level of production, which in turn boosts the demand for goods and services. This creates a need for new workers and has a direct impact on lowering unemployment. Investment in infrastructure, electricity, and telecommunications improves the business environment, leading to the establishment of new enterprises and, consequently, the expansion of job opportunities.
In summary, investment plays a key role in reducing unemployment. However, it is essential that investments are directed toward sectors with high employment-generating potential and that contribute to economic development. Coordination between the government and the private sector can further enhance the success of this process.
The Islamic Emirate has taken practical steps toward attracting and mobilizing investment for this purpose. Investment has already been secured in some sectors, and the process continues to move forward.