The graph of political and economic uncertainty started its upward slope with the announcement of the United Sates to withdraw its troops from Afghanistan. President Hamid Karzai’s denial to sign the agreement according to schedule requested by Afghans and the US authorities has caused uncertainty in Afghanistan reach its worst level. The growing level of ambiguity about the future has deeply impacted the investment and economic environment in Afghanistan. Both domestic and foreign investors are not willing to invest their capitals. Most Afghans have turned to buying US dollars and other stable currencies amid ongoing disagreement between Kabul and Washington on the signature of Bilateral Security Agreement (BSA).

For Afghanistan to move towards a better and more self-reliant economy there is a pressing need for investment in its various sectors. Insecurity remains as the biggest obstacle for attracting foreign direct investment. Meanwhile, the high level of uncertainty seems to be doing more harm. 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. But investments in Afghanistan remain confined to a few telecommunication companies, banks and beverage producers. The government has also entered in a number of agreements some of which allow Indian and Chinese companies to extract mineral resources of Afghanistan. But such projects are also yielding no benefit to Afghan economy. The condition is expected to remain so until positive decisions are not reached on important issues pertaining to the present and the future of Afghanistan.

Insecurity, 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 are contribute to keeping investors away from Afghanistan. Despite presence of such obstacles, the kind of politics the government is practicing only means adding fuel to the fire.

Investment can play a crucial role in boosting the economy of Afghanistan and will help its people come out of the grave poverty they are facing. Politics that can harm Afghanistan economically must be avoided. 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 growing political uncertainty and insecurity are the main challenges that need to be countered.