Afghanistan is generally more dependent on foreign aid as compared to its economic and industrial activity; although it is a land-locked country but rehabilitation of its industry and export of domestic products through air and land routes can have a significant role in its prosperity. The decades of war, political turmoil, and civil unrest have turned our country’s every useful facility into ruins.
Since the collapse of the Taliban-led invasion in 2001, the economy has been steadily growing merely due to a huge influx of foreign aid and investments into Afghanistan. But none of the aids have been invested in a sphere which could help our country be self-reliant.
President Ashraf Ghani, after coming into power in 2014, has been holding promises to boost the country’s economy and transform it into a big exporter. The recent example of his reiteration was at a video conference with governors of some provinces a few days back when he reaffirmed his resolve to transform this land-locked country, heavily reliant on imports, into a major exporting economy. This comes a day after a protest gathering carried out by dozens of fruit traders in Kabul’s markets.
Of all his commitments; Chabahar Port trilateral agreement, inauguration of the railway line in Kunduz with China and launching the much-anticipated Afghanistan-India Air Corridor are something which have been realized so far. Drawing an aid of $15 billion from the International Community to Afghanistan is also laudable. But all these do not suffice; more work is needed for boosting economy and restoring industry as they constitute the pillars of a country.
According to the World Bank (WB), the GDP in Afghanistan was worth $19.47 billion in 2016. The GDP value of Afghanistan represents 0.03 percent of the world economy.
After US forces withdrawal in 2014, the GDP Annual Growth Rate in Afghanistan has been subsequently decreasing in the coming years. Which means the growth in GDP was just relied on international fraternity’s presence, foreign aid and assistances. Therefore, Afghanistan’s own exports and productivity haven’t been that much considerable and needed a deep look. Some issues such as insecurity, corruption and lack of proper management contributed to the low GDP rate but in general there has been a lack of attention in this regard.
Natural resources, agricultural products and industry
Given the fact that Afghanistan once enjoyed being at its peak with regard to economic activity, the country is now just eyeing other countries’ fund.
Had Afghanistan’s natural resources and domestic products—whether agricultural or industrial—paid attention and ways for their use and exportation paved, Afghanistan would have been now experiencing a great economic success.
Agriculture (35 percent of GDP) is the most important sector of the economy, as the majority of the population is dependent on crops.
As per data from WB, the Afghan economy has always been agricultural, despite the fact that only 12% of its total land is arable and about 6% is currently cultivated. So a lot of stopped factories are needed to be reactivated and new mills established for process of different agro products.
There were some factories functional in the past hugely contributing to Afghanistan’s economy; unfortunately, they have been either closed or doing low-activity just because of the decades long war. Entrepreneurship and concentrated attention is needed as revival of these factories will be incredibly beneficial for the country. Some examples of the defunct factories are Spinzar Cotton Company, Kandahar Cotton Textile Enterprise, Herat Textile Project many others.
Although there are several industrial factories, cotton mills (ginneries) and textile mills throughout Afghanistan, many have been damaged during the war and are either only partially functional or non-operational. The main mills are situated in Kunduz, Balkh, Helmand, and Herat.
As an example, the Spinzar Cotton Company, formed in 1936 by a group of traders in Kunduz, was one time a highly valuable factory for the country. Before 1979, it was common for Spinzar cotton gin to process more than 100,000 tonnes of raw cotton per season. Today, the gin is processing less than 500 tonnes of raw cotton, far less than what is capable given the condition of the factory.
Other important factory is Herat Textile Project, the facility established in 1976 is a public textile mill & the maximum production capacity of this production unit was once 12.5 million meters with employment capacity of 1800 individuals. Currently, it is not in operation as it sustains scars of decades long war. About $1.5 million is estimated cost of making the unit operational again.
India in 2015 once expressed cooperation and support to reviving and reactivating such textile companies but there has been so far no progress made.
Mining also has a significant role in terms of boosting economy. Afghanistan is endowed with a wealth of natural resources, including extensive deposits of natural gas, petroleum, coal, marble, gold, copper, and many other rare earth elements and vast mineral resources, such as lithium, and precious stones
In 2010, U.S. Pentagon officials along with American geologists have revealed the discovery of nearly $1 trillion in untapped mineral deposits in Afghanistan. A memo from the Pentagon stated that Afghanistan could become the “Saudi Arabia of lithium“. Some believe, including Afghan former President Hamid Karzai that the untapped minerals are worth up to $3 trillion.
Why the industry is down & what should be done in this particular arena?
Despite all these, why the country is still economically unstable and needed assistances? It is because there are some reasons and hurdles hampering Afghan industry to be rehabilitated. First of all, the commitments held in this regard by leaders simply have symbolic shape and none of them have been honoured so far. Another reason behind the industrial and economic stagnation is not spending the foreign aids and assistances in proper arenas — which could help the country move towards self-sufficiency — either deliberately or mistakenly.
Some regional and neighboring countries are also not in the favour of Afghanistan’s development as they attempt to insecure or stir up tensions in our country and impede its growth and improvement in this regard.
Attention to these economically-boosting factors is required to be paid and a bigger part of investments, aids and budget should diverted into this sphere and Afghanistan will no longer be dependent on other countries in the best-case scenario.
A whole bunch of opportunities exist for our country, only a strong will, sincerity and the proper management of the assets, investments and aids can achieve what is needed.
With consideration to all these aspects and potential features of Afghanistan, all hopes are pinned on its prosperity and self-sufficiency. In addition, these factories’ revival, extraction of Afghanistan’s natural untapped resources and opening every possible export route is vital for the war-torn country.
Besides this, the present day serious phenomenon of joblessness can also be brought to an end as job opportunities to thousands of Afghan youth and professionals could be created if the above mentioned suggestions are paid heed.
View expressed in this article are of the author’s own and do not necessarily reflect Pajhwok’s editorial policy.
