Afghanistan is moving from stabilization to growth
Ajmal Ahmady, economic advisor to the President of Afghanistan, stated it to the American political newspaper The Hill, published in Washington.
Noting that the economy is an important factor to achieve peace and social well-being, Ahmady outlined the ongoing economic transformations in Afghanistan, aimed to boost private investment to create jobs and sustainable industries.
Thus, during the past few months, the Afghan government has passed significant economic legislation, opened up opportunities across new sectors and cut bureaucratic red tape to encourage businesspersons to invest.
These changes have already produced results – more than $500 million in investment contracts have been signed since the beginning of the year. A boost in Afghanistan’s structural GDP growth rate from 2.5-3.0 percent to about 4.0 percent over the coming years is estimated.
Over the past few years, the National Unity Government has taken action to create a more enabling environment for investors and private-sector development. For example, the government reduced regulatory burdens, cutting the cost of obtaining a new business license from $440 to only $1 as well as other business regulations are simplified.
Among the key areas, Ahmady noted the implementation of a number of major regional projects. Whereas five years ago, Afghanistan did not have a single operational railroad, we now have four functioning railway connections with three neighbors, he added.
The construction of the Afghan section of the Turkmenistan-Afghanistan-Pakistan-India gas pipeline (TAPI), which will create new jobs and bring significant economic dividends to the country, started earlier this year.
The construction of a fiber-optic backbone along TAPI opens up new opportunities in the telecommunications sector, where more than $300 million in investment contracts have been signed already.
According to Ahmady, though there is a long road ahead, Afghanistan is now moving from policies of economic stabilization toward policies of economic growth, with results to show for it.
