Editor in Chief: Moh. Reza Huwaida Tuesday, March 26th, 2019

The Challenges Faced by Economic Sector in Afghanistan

The role of economy is of immense importance for a nation. Economy is for a country as circulatory system is for a body. As in the absence of circulatory system, blood cannot be pushed through different parts of the body, similarly, without economy, currency and other rudimentary necessities of life cannot reach to various parts of a country. Mostly, the other systems in the country, like social and political systems are greatly reliant on on the economic system. Certain thinkers even believe that the nature and features of others systems are determined by the economic system. Consequently, it is imperative that all the countries in the world must sustain strong economy so as to have constancy and reliability.
There are diverse facets of an economic system.
Businesses or trades form one of the most important ones. If within a system there are steady investments and different businesses take roots, the system is believed to be on a track to growth and richness. From the inception of human society, human beings have required businesses so as to have their necessities satisfied. During the course of human history, businesses have taken different forms and features and presently have touched today’s advanced form.
The under-developed and developing countries of the world that require founding durable economic system need development and sustenance of different businesses to a great extent. The authoritative people in such societies have to ensure that the businesses have every opportunity to flourish.
There are certain requirements for businesses and investments to advance. Amid them stability and security play the most compelling roles. If different systems within a country are steady and there are not major fluxes every so often, the ground is said to be prepared for the investors and businessmen to take the plunge and launch their businesses.
Businessmen want unswerving results from their investments and they detest seeing political and social changes interrupt their businesses. The evil like insecurity also plays major role in dispiriting businesses and investments. Different incidents of terrorism and killings force the businesses to go bankrupt, and terrify the investors to invest. The societies marked with insecurity do not have consumers going to the markets and relishing the luxury of shopping different products.
Afghanistan is one of the same types of country where insecurity has been influencing the economic life to a high level. Both national and international businessmen are not willingly eager to invest in all the sectors and they do not see confident prospects of their businesses. As insecurity has been devastatingly influencing the country, the expansion in the basic infra-structure has been scanty.
The worries and reservations of the Afghan market have made the international investors to think several times before they take an initiative to start their businesses in the country. Although there can be great opportunities in Afghanistan as the country is blessed with different types of mineral and other natural resources, the economic infra-structure has not been able to get enough attention. The lack of infra-structure developments has incapacitated different business to flourish. Since, there are no ready raw material for the industries; no reliable sources of energy, particularly, fuel and electricity; no well-developed networks of roads that should transport them to the industries on time; no skilled labor available to work within the industries; and no proper mechanisms that can ensure the transportation of the finished goods to the local, national and international markets, the industries in Afghanistan have to face myriads of challenges. Therefore, the investors are not galvanized enough to invest their capital for industries and other economic initiatives.
Afghanistan needs to have strong economy so as to stand on its own, especially after the most of international troops have withdrawn. The international aid and assistance that have been coming to the country for the last some years have been reduced and Afghan economy will be tested to a large extent. The country has to start from the basic infra-structure development and have to reach to a strong economy, wherein the businesses are able to run without any distress and inconsistency. An environment has to be developed that can be rousing for both the national and international investors. Furthermore, the golden chances wherein Afghanistan can apply maximum and can get the best outcomes from must be discovered and they should be reinforced so as to thrust the country towards self-reliance. Alternatively, the businessmen and investors must also keep the national interests in their deliberation while they establish their businesses and start getting the outcomes from them. They have to keep this in their minds that the society as a whole has certain rights that have to be fulfilled by them. In similar fashion the international investors must also deal with the circumstances in Afghanistan as special and must keep both their interests and the support for Afghanistan in their consideration.