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Economy

Afghanistan Fact Sheet-Economic Environment

SOUND PUBLIC POLICIES
  • GDP growth : 29% (2002) and 23% (2003)
  • Successful currency reform in late 2002 which stabilized inflation
  • Mobilization of domestic revenue- from nearly 0 (2001) to 4+% of GDP (2003)
DEVELOPING INFRSTRUCTURE
  • New Road network connecting cities within Afghanistan to neighbours
  • Creation of six industrial parks totalling more than 1,250 hectares (3,000 acres) to expedite professional, high quality industrial investments
FACILIATING INVESTMENT, ENCOURAGING BUSINESS
  • Customs procedure streamlined and paperwork reduced by 90%
  • Financial sector reform- newly autonomous Central Bank, private banks
  • Investment laws allowing 100% foreign ownership
  • Use of Multi-Investment Guarantee Agency to mitigate perceived risks
  • Lowest import tariffs in the region (IMF Report January 4, 2005)
  • Exports increased by 76% in 2003 and 46% in 2004 (IMF Report, Jan. 2005)
  • Creation of Afghan Investment Support Agency by Presidential Degree
AFGHAN INVESTMENT SUPPORT AGENCY
  • One-stop shop for investors (responsible for registration and licensing)
  • Simplified investment process from 28 steps to 5
  • Website: www.aisa.org.af