Business
Billions of dollars in contracts at risk due to ‘lack of coordination’
Officials representing defense contractors said billions of dollars in contracts meant to support Afghanistan through U.S. government agencies are at risk during the military drawdown, and that the risk is worsened by a lack of coordination in Kabul and Washington.
The Associated Press reported these officials recommended creating “collaborative forums” in Kabul and Washington to ensure better planning for the drawdown and to support post-withdrawal U.S. efforts in Afghanistan.
“Contractors need up-to-date information from USG (U.S. government) officials on the constantly changing drawdown impact on USG missions in Afghanistan and on the security environment for contractor operations,” AP quoted them as having said.
“Better communications and prudent planning that includes contractors can help protect our people while executing the drawdown and achieving defense, development, and diplomatic goals,” they said.
The letter was signed by heads of the National Defense Industrial Association, the International Stability Operations Association, and the Professional Services Council.
There are thousands of U.S. contractors in Afghanistan, most or all of whom are expected to depart in the military withdrawal which is expected to be completed by September 11.
The National Statistics and Information Authority (NSIA) confirmed Tuesday that in the last month of solar year 1402, (March 2024) Afghanistan’s exports totaled $141.1 million and imports totaled $789.6 million.
This was down from $174 million for exports in the same period in 1401. However, imports increased by $99.2 million in 1402, up from $690.4 million.
Most exports in the last month of 1402 went to Pakistan, India and the United Arab Emirates, while in the last month of 1401 exports went to Pakistan, India and China.
The Ministry of Interior said the governor of Herat province Islam Jar met with Alim Khan Yasin Gildaye, Ambassador of Kazakhstan to Afghanistan, to discuss various issues around trade.
According to the ministry, the two sides discussed the expansion of trade facilities, increasing the volume of trade exchanges between traders of the two countries, reducing customs tariffs, solving the challenges of traders and issuing visas to them.
The Afghanistan-Kazakhstan Chamber of Commerce has been opened in Herat in order to facilitate and increase trade between the two countries.
The Ministry of Industry and Commerce (MoIC) says Afghanistan has reached self-sufficiency in 45 sectors and the production of 133 items, and that the ministry is striving to change Afghanistan from an importing country to an exporting one.
The ministry officials said that for this purpose, supporting domestic products and attracting investment is essential.
The ministry’s spokesman Abdul Salam Jawad Akhundzada emphasized increasing the use of domestic goods and products in government and national projects and added that efforts have also begun to find a market for domestic products inside and outside the country.
“We have reached self-sufficiency in 133 items of production, which is 45 sectors, and also we reached the capacity of semi-self-sufficiency in 95 items of production, which is 27 sectors,” he said.
Meanwhile, the Chamber of Industries and Mines (ACIM) says over the past two and a half years, more attention has been paid to the development of domestic production and it is also expanding.
The chamber officials stressed expanding the culture of using domestic products in government projects.
“I think that the government is one of the biggest consumers in the market if it uses domestic products in all its development projects,” said Abdul Nasir Rashtia, a member of ACIM.
Economic experts also said that if the use of domestic products in government projects increases, Afghanistan will quickly move towards economic independence.
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