Business
World Bank survey finds Afghan firms still face ‘daunting challenges’
The World Bank said Monday many businesses in Afghanistan are adjusting to the new business environment but most still face daunting challenges.
The World Bank’s second private sector survey, published Monday, was conducted in May and June 2022.
The Private Sector Rapid Survey (PSRS) Round 2 assessed the status, constraints, and investment outlook of businesses, and the impacts of the ongoing economic challenges faced by private sector firms in Afghanistan.
“Afghanistan continues to face enormous social and economic challenges that are impacting heavily on the welfare of its people, especially women, girls, and minorities.
“The new survey confirms the resilience of Afghanistan’s private sector, which can play a key role in the economic recovery of the country and improving the lives of all Afghans,” said Melinda Good, World Bank Country Director for Afghanistan.
“It also shows that firms continue to suffer from impacts of political uncertainty and policy fragmentation, Afghanistan’s isolation from the international financial sector, and reductions in international assistance,” she said.
More than three-fourths of firms surveyed in Round 2 are operational, compared to two-thirds in Round 1, conducted in October and November last year.
However, most are operating significantly below their full capacity and are only considered partially open, the World Bank stated. Consumer demand appears to have slightly improved in past months but remains considerably lower than before August 2021.
Employment remained around 50 percent lower, on average, than before August 2021, compared to 61 percent lower in Round 1 of the survey.
Women-owned businesses are most affected by restrictions on women’s mobility, resulting in disproportionate revenue and job losses, World Bank stated.
Female employment remains 62 percent lower than before August 2021, while it was 75 percent lower in November 2021.
In addition to this, the World Bank found that businesses continue to be negatively impacted by the loss of international banking relationships, which has disrupted international payments and limited access to bank accounts and formal banking.
“Firms are resorting to the use of informal money transfer systems for domestic payments,” the bank stated.
Despite some businesses hiring employees, the majority of respondents have coped with these challenges by laying off employees, shifting to cash and informal payment channels, shrinking investments, and lowering staff salaries, World Bank reported.
“Action is required by the authorities to unlock possibilities for much-needed international economic integration and domestic opportunities for Afghanistan’s private sector,” said Good.
“This includes increased transparency in public finances and reestablishing central bank independence. With measures like these and continued resilience of businesses, a sustainable private sector-led recovery is possible.”
Business
Afghanistan signs $46 million deal to develop standard laboratory complexes
The Office of Mullah Abdul Ghani Baradar has announced a contract worth over $46 million for the construction and outfitting of standard laboratory complexes in Kabul and nine major ports across Afghanistan.
The agreement, signed Wednesday at the Government Media and Information Center, was finalized between Faizullah Tamim, head of the Standards and Quality Authority, and representatives of the Indian international firm TCRC, according to a statement from the Deputy Prime Minister for Economic Affairs Office.
Under the five-year deal, TCRC will establish modern laboratory complexes in the capital and key ports, install advanced equipment, renovate existing facilities, and introduce foreign specialists to strengthen the professional capacity of the authority’s staff.
The project will also provide domestic and international training programs for technical employees and support efforts to secure internationally recognized quality certifications from the International Organization for Standardization (ISO).
Officials said the initiative aims to improve Afghanistan’s quality control systems and enhance standards infrastructure nationwide.
Business
Ariana Afghan Airlines lowers cargo rates on Kabul–Delhi route to boost exports
Business
Afghanistan, Uzbekistan sign 13 trade MoUs worth over $100 million
Thirteen trade and investment memorandums of understanding (MoUs) worth more than $100 million were signed between private sector representatives of Afghanistan and Uzbekistan during a conference held in Kabul on Saturday.
The conference, which brought together business leaders and officials from both countries, focused on expanding bilateral economic cooperation, increasing trade volume, and identifying new investment opportunities.
Speaking at the event, Nooruddin Azizi, Minister of Industry and Commerce of Afghanistan, said economic relations between Afghanistan and Uzbekistan have gained notable momentum in recent months. He stressed that Afghanistan is actively working to strengthen regional trade ties and create a more favorable environment for investors.
Azizi added that Afghanistan offers significant investment potential, particularly due to its available workforce and emerging opportunities across multiple sectors, and is ready to welcome joint ventures with foreign partners.
Officials from the Ministry of Industry and Commerce of Afghanistan said the government has facilitated around $2 billion in investment across various sectors over the past year, reflecting growing investor interest in the country’s economy.
The Uzbek delegation also reiterated its commitment to expanding economic relations with Afghanistan, describing the agreements as an important step toward deeper regional cooperation.
Amanbay Orynbayev, head of Uzbekistan’s Karakalpakstan delegation, said his country places strong emphasis on long-term, transparent, and reliable economic partnerships. He encouraged Afghan traders to take advantage of joint investment opportunities to access new regional markets.
The Afghan private sector welcomed the agreements, expressing hope that increased trade engagement and business exchanges will further strengthen economic ties between the two neighboring countries.
Officials noted that the total value of agreements signed between Afghanistan and Uzbekistan has now exceeded $1.5 billion. If implemented effectively, these commitments are expected to contribute to increased trade flows and broader economic growth in Afghanistan.
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