Editor in Chief: Moh. Reza Huwaida Thursday, March 28th, 2024

Government’s Efforts for Economic Expansion

On Monday last week, President Muhammad Ashraf Ghani visited the economically important copper-mines of Mes Aynak in Logar province. President went there to give message to the world that the area is now completely safe from the security point of view and international investors can immediately come and start the work on the site.

Last week was also important from the investment perspective of the country when foreign ministry announced to give instant visas to foreign investors without any delay and official complications. The visa can be obtained for a duration of three years which will be further extended when needed.

Mes Aynak is considered to be one of the biggest reserves of copper in Asia. In 2007, the mines were given on a thirty years’ lease to a Chinese company worth three billion dollars, making it the biggest foreign investment in the history of the country. The said company also promised to establish a railway track from the site to the capital city of Kabul, the total distance of 25 kilometers. A 400 megawatt electricity facility was also part of the project. It was estimated that the project would generate thousands of job opportunities in the country and it would be a constant source of revenue for the country, adding the minimum of 100 million dollars to the national exchequer. The extraction of copper would further give birth to numerous economic activities in the country that would change the fate of the country.

However, the work was soon halted on the site due to the staggering security conditions in the area. Right from the beginning, the project became a matter of controversy due to the increasing interest of a number of international powers in the country. There are reports that many countries are not happy of the allotment of this project to a Chinese company and the hidden hands of international powers cannot be ignored in the insecurity in the area. On the other hand, the area is considered to be a sensitive point of the entry and passage of insurgents from a neighboring country.

Having a look at the poor economic conditions of the country, the importance of mass economic projects are really important. It is a sad fact that our country is badly dependent on international donations due to the absence of domestic production. We import almost all the things from other countries of the world and we don’t have almost any exports. Due to this reason, billions of dollars are spent on international spending while no money enters the national economy from exports. In such conditions, the country becomes badly dependent on international donations. However, the country can also have another source of income in the form of extraction of minerals. The country is considered to be one of the richest countries of the world in terms of natural resources. According to geological experts, there are vast reserves of different natural resources in the country. The work has been started on the mass oil and gas reserves in Shibirghan while there are reports of similar vast gas and oil reserves in a number of other places in the country. These natural resources can not only generate billions of dollars to the country but they can also produce thousands of jobs and give birth to economic activities, adding a new life to the economy of the country. However, the country’s present infrastructure and labor force is not skilled enough for the extraction of these minerals. In such conditions, we look forward for foreign investments for the extraction of minerals. In this regard, a number of international companies are looking forward to invest billions of dollars in a number of projects in the country. But there are certain obstacles in this regard. The biggest hindrance in this regard is the insecurity in the country. Though the security of major cities is quite satisfactory, but the security in the rural areas is not satisfactory. This applies to almost all the natural reserves found in different parts of the country. Second problem are the complications by the concerned government authorities that make the process of investment difficult in the country.

The present government has shown extreme sincerity for boosting economic activities in the country. The president tried his best to encourage foreign investors in all his foreign visits and he has also worked to bring reforms in the government offices to bring more facilities to the investors and remove complications in this regard.

This week’s news about the visit of the president to the copper reserves of Mes Aynak and the facilitation of visa for foreign traders, investors and businessmen is a good news for the feeble economy of the country. It is hoped that with the passage of time, the trust of both foreign and local investors and businessmen will increase, resulting in the increased economic activities and expansion in the economy of the country and we will be able to have an economy good enough to meet the needs of the country and we will no more be dependent on anyone. Along with these two activities, it is hoped that government will look for all other possibilities to increase economic activities of the country and make the country one of the most favorable countries for foreign investment.