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Economic

Capital flight key business challenge in Afghanistan, expert

By: Shukria Kohistani

KABUL: Capital flight, mostly emanating from intensified war and violence and a failed transparent financial system, has been called one of the serious challenges towards business in Afghanistan.
A major number of investors have taken their capital to Turkey, UAE and Uzbekistan. In the past few years, hundreds of thousands of people left the country, with thousands of investors taking their capital out of the country, said Saifuddin Saihoon, an economic expert and Kabul University lecturer in a briefing to The Kabul Times.
“The government financial policy, for collecting revenues, was not transparent, the young and updated business criteria needed further time and efforts for effectiveness,” said the expert adding that the trade agreements with the neighboring countries, were not still executive that caused the country’s businessmen suffer millions of dollars in loss each year.
He said the economic environment was appropriate for business currently in Afghanistan. “High usury rate and high commercial loans and inflation rates have added to challenges emanating from growing insecurities to face business with hardships in Afghanistan.” Meanwhile, Sakhi Payman, deputy head of the Chamber of Commerce and Investment blamed lack of investment opportunities, growing insecurities, the current ambiguous political situations have disappointed most of the country’s businessmen to invest in the country.
He said most of them have taken their capital to Turkey, UAE and Uzbekistan as they see the situation improper for investment in Afghanistan.
Nearly forty years ago, Iron melting plant with more than hundred workers, have started operational at the Pul-e-Charkhi industrial township, where it is now going bankrupt in the recent one year, said a worker.
“We have to continue our works despite facing difficulties. We have no stable power, resulting in the suspension of our works,” said Wahid a worker of the factory.
But authorities of the Ministry of Commerce and Industries are optimistic about the resumption of investments in Afghanistan, as the spokesman Fawad Ahmadi the goal could be reached after restoration of peace and security in the country. He hoped for a revitalization of investment and business thrives in the country.

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