Private sector to invest $250m in Kandahar

KANDAHAR CITY (Pajhwok): The private sector has pledged millions of US dollars investment in southern Kandahar province and helping the region turn into an economic zone.

Kandahar traders and investors say they plan to invest $250 million in Kandahar to generate jobs for around 25,000 people in next 1399 solar year.

Seven strategic provinces including Kabul, Nangarhar, Balkh, Khost, Helmand and Herat are expected to be turned into special economic zones of the country.

Private sector’s role and demands in economic zone

Haji Nasrullah Zaheer, head of Kandahar chamber of commerce and industry, told Pajhwok Afghan News that a team of Airports Economic Development Commission recently visited the province and met with local officials, traders and industrialists.

He said Kandahar traders and industrialists signed an agreement with the commission and talked about projects in which they would invest.

Based on the agreement, Kandahar traders and investors plan to invest $250 million in the province and create jobs for around 25,000 people, he said.

Zaheer added that Kandahar traders wanted to invest in three areas --production of 120MW of electricity, extracting cement and in agriculture.

He stressed the government should implement its promises including enforcement of special financial and commercial laws, customs and tax exemption, building infrastructures, offering special services and others.

He said if the plan was implemented it would boost agricultural, commercial and industrial sectors not only in Kandahar, but in the whole of southern region.

“Connecting the country’s roads and railways with the region and the world’s dry ports is a major advantage of the private investment”, he said.

Niamatullah Niamat, Kandahar chamber of industry and mines deputy head, said that industrialists needed land first for implementing the plan.

Besides land distribution, meeting requirements of the industrial park of Kandahar is also important because industrialists are faced with problems due to lack of services, he said.

“Kandahar industrialists pay millions of afghanis tax to municipality, environment protection office and other organs while they are provided no services in return such as asphalted roads, firefighting system, healthcare center, stable electricity and others during the last 18 years,” he said.

He added that industrialists wanted to invest in cotton production and its export as well as building fumigation center and investing in a major agricultural farm next year.

Zahra Zahid, head of women’s chamber of commerce and industry of Kandahar, said that women could also play an important role in turning the province into an economic zone.

“If women’s handicrafts find a stable market, it would help boost women’s economy and improve their products,” she said.

She said a member of the Kandahar women’s chamber of commence and industry was planning to build a special restaurant for women in the province, which would be the first business for Kandahar women.

On the other hand, owners of fabric production and wool weaving factories in Kandahar say the private investment will revive non-functioning factories in the province.

Hayatullah Jawad, in charge of a textile factory, said the factory was opened in 1979 during leadership of Mohammad Daud Khan at a cost of $29.5 million.

He said 13,000 people worked in the factory which produced 40 million meters of fabric and coloring 50 million meters fabric in a year.

“This factory was totally stopped during war but it can be repaired and made functional again,” he said.

Jawad asked the government to reactivate the factory and help thousands of people get job and contribute to the country’s economy.

Tafil Basiri, wool weaving enterprise head, also said the factory was damaged during war but could be repaired.

He said wool weaving factory was opened in 1979 in 10 acres of land at a cost of 600 million afghanis. He said 800 people worked in this factory.

Government’s role in economic zone

Nasrullah Sahibzada, secretary of Airports Economic Development Commission, told Pajhwok that the government had plan to build economic zones in eight strategic provinces including Kandahar, Helmand, Herat, Kabul, Nangarhar, Balkh and Khost.

He said the zones would be built near airports and a special commission had been created for the purpose.

“The aim of building these special zones is economic growth, attracting investments and creating job opportunities as well as connecting the country’s roads and railways with the region and world’s dry ports”, he said.

He added the special zones would be run under special financial and commercial laws concerning tax and custom exemptions, providing facilities and services, and others.

Industrial areas, administrative buildings, new electronic system, fresh and dry fruits complexes, asphalted roads, custom offices, cargo system, residential buildings and technology centers are considered in these zones, Sahibzada said.

He said that the zones would have good environment and conditions for investment.

Building a Free Zone in Spin Boldak district of Kandahar is also part of the economic zone in the province, he said.

The president has ordered Airports Economic Development Commission to choose short-term, mid-term and long-term projects for Kandahar province’s economic development and exports, he said.

He added they during a trip to Kandahar met with local traders, investors, industrialists and private sector officials for choosing projects which the private sector wanted to invest in for boosting Kandahar economy.

Mds/ma