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

WB Labels Afghanistan Worst Country for Investment in Asia

WB Labels Afghanistan Worst Country for Investment in Asia

KABUL - Afghanistan is the worst country for investments in Asia, and the seventh worst in the entire world, according to a report recently published by the World Bank (WB).

The report comes just as the new, more inclusive government in Kabul has made promises for reform and economic growth, but also in the wake of a tumultuous political transition and an intense summer fighting season, and just a couple months ahead of the NATO coalition withdraw.

It is no surprise then that the report cites security threats, corruption, lack of reform and declining international aid as some of the most fundamental factors behind Afghanistan's fragile investment climate.

Last year, Afghanistan was ranked 182 out of 185 countries evaluated by the World Bank for investment potential.

But this year’s report saw the country drop to 183 as the number of countries evaluated expanded to 189.

Meanwhile, Singapore was labeled the top investment-friendly country in the world for the ninth consecutive year.

This year’s report applauds the international community for its contributions and support to Afghanistan over the past decade when it comes to attracting investments.

But it states that, despite the extensive cooperation, Afghanistan’s investment environment remains relatively inhospitable.

The Afghanistan Investment Supporting Agency (AISA) has responded to the report, and did not dispute its findings.

“I think the reason was political instability, security problems and the Afghan elections, which were beyond the capabilities of the government offices,” AISA Chairman Wafiullah Iftikhari said.

The World Bank report evaluates a number of key indicators in each country, including, construction licensing, access to energy and bank loans, property registration, small business support, international trade ties and contract law.

According to the report, Afghanistan is inadequate in most of these areas.

“Yes, Afghanistan is a tough environment for investment, in addition to insecurity, there is a lack of access to loans and other problems, there is corruption in the municipality and other administrations,” Harakat Director Sadaf Dashti told TOLOnews.

"AISA license, that was an achievement, but its extension has turned into an obstacle, and is very expensive.”

Economic experts have said that World Bank report makes it clear Afghanistan will not be able to attract international investment anytime in the near future unless the government take initiative and implements the necessary reforms in accordance to international standards.

Nevertheless, many are optimistic about the new national unity government’s plans for the economy, after all, President Ashraf Ghani was once a top economist for the World Bank.

Afghanistan is the worst country for investments in Asia, and the seventh worst in the entire world, according to a report recently published by the World Bank.

The report comes just as the new, more inclusive government in Kabul has made promises for reform and economic growth, but also in the wake of a tumultuous political transition and an intense summer fighting season, and just a couple months ahead of the NATO coalition withdraw.

It is no surprise then that the report cites security threats, corruption, lack of reform and declining international aid as some of the most fundamental factors behind Afghanistan's fragile investment climate.

Last year, Afghanistan was ranked 182 out of 185 countries evaluated by the World Bank for investment potential.

But this year's report saw the country drop to 183 as the number of countries evaluated expanded to 189.

Meanwhile, Singapore was labeled the top investment-friendly country in the world for the ninth consecutive year.

This year's report applauds the international community for its contributions and support to Afghanistan over the past decade when it comes to attracting investments.

But it states that, despite the extensive cooperation, Afghanistan's investment environment remains relatively inhospitable.

The Afghanistan Investment Supporting Agency (AISA) has responded to the report, and did not dispute its findings.

"I think the reason was political instability, security problems and the Afghan elections, which were beyond the capabilities of the government offices," AISA Chairman Wafiullah Iftikhari said.

The World Bank report evaluates a number of key indicators in each country, including, construction licensing, access to energy and bank loans, property registration, small business support, international trade ties and contract law.

According to the report, Afghanistan is inadequate in most of these areas.

"Yes, Afghanistan is a tough environment for investment, in addition to insecurity, there is a lack of access to loans and other problems, there is corruption in the municipality and other administrations," Harakat Director Sadaf Dashti told TOLOnews.

"AISA license, that was an achievement, but its extension has turned into an obstacle, and is very expensive."

Economic experts have said that World Bank report makes it clear Afghanistan will not be able to attract international investment anytime in the near future unless the government take initiative and implements the necessary reforms in accordance to international standards.

Nevertheless, many are optimistic about the new national unity government's plans for the economy, after all, President Ashraf Ghani was once a top economist for the World Bank. (Tolonews)