In post-conflict countries like Afghanistan, investment, be it foreign or domestic, plays a very crucial role in boosting their economic condition. Unfortunately, although Afghanistan has put behind foreign occupation, civil war and then the rule of Taliban, this country is still not an attractive place for large foreign investors. Reasons are many but continued political uncertainty, lack of infrastructure and electric power are on the top.

President Hamid Karzai and his ministers have tried to encourage investors during their visits to foreign countries. It is never bad to present a better image of Afghanistan in abroad. Nonetheless, insignificant number of investors has shown interest in doing business here. The truth is that the security condition that is continuing its downward slope cannot be concealed.

Before investing in a country, any business would analyze the risk factors and in Afghanistan making investment is highly risky. The businessmen would see the ground realities in country not the promises and assurance of its authorities.

Afghanistan is in dire need of foreign investment in its various sectors. Nonetheless, for attracting investors merely making statements is not enough. There is need for more practicable measures that can ensure improvement in security condition.

The one thing the government and international community need to focus on more than everything else is improving security and safety to the lives of businessmen. Long lasting security is the key to economic prosperity. Unskilled labor force, deep-rooted corruption, destructed infrastructures, drug trafficking, political instability, lack of transparency and accountability at all levels and several other such factors contribute to keeping investors away from Afghanistan. These all hindrances must be removed by the Afghan government with strong will and determination.

Those who have already invested in Afghanistan face multifaceted problems – security on the top - and the government is failing to counter them. In the last 12 years, we have witnessed abductions and killings of businessmen and investors. These incidents have gone discouraging people – in Afghanistan and abroad – who are having on mind to invest in this war-ravaged country.       

Both the domestic and foreign business firms currently operating in Afghanistan are worried about growing insecurity and uncertainty about the future. Afghanistan’s every sector provides much opportunity for investment. Unfortunately, Afghanistan cannot provide the required level of security to the businessmen, traders and other investors. Until the condition improves, Afghan economy is going to remain highly fragile and dependent on international aids.