Editor in Chief: Moh. Reza Huwaida Tuesday, January 21st, 2020

The New Look of Afghanistan’s Industrial Parks

The New Look of Afghanistan’s Industrial Parks

KABUL - No one can ignore the vital role of industries in the economic development of underdeveloped countries; historical documents show that industries have developed almost all countries, and they are areas which require lots of attention. Since the start of industrial revolution, countries tried to have stronger and better economies through industries, and promoted the sector by allocating and zoning estate or property for them; so that, industrialists can easily start their businesses and industries. The Property generally has various names such as the Industrial Pak, industrial zone and economic zone. These parks are located at the outskirts of the cities with proper infrastructural access and close to transportation infrastructures. Some of the reasons for setting aside Industrial Parks are as follow:
To enhance dedicated centralization of infrastructure in one area to reduce the business costs related with infrastructure;
To attract start-ups by provision of an integrated infrastructure in one area;
To decrease the environmental effects of industrial disposals;
To keep up with the world, Afghanistan also pursued the notion of putting aside estate for Industrial Parks to provide cheaper land for industries.
Afghan IPs Status quo:  There are 34 Industrial Parks in Afghanistan covering thousands of acres of area. 11 of these parks are fully operative; 12 of them are under construction. The remaining 11 parks are fully sketched and need some attention.  In more than 7 provinces, we have feasibility of building industrial parks.
Most of these IPs are quite successful. For example, according to the General Directorate of Industrial Parks, Pol-e-Charkhi industrial parks with 1350 acres area has 115 plots which is home to 360 factories. 225 of the factories are actively engaged in manufacturing. Another example would be the Herat’s IPs that cover 4,741 acres of land with 969 plots. 896 of the plots have been distributed and there are 279 active firms.
Moreover, concrete steps have been taking by the Ministry of Industry and Commerce of Afghanistan to make them more practical and convenient for Industrialists. The steps consist of legal reforms, lowering the property price, and distribution of land for cusomers.
Legal reforms in the legal legislations of IPs: Laws and regulations are significantly handy for economic development of countries, since every venture needs better and clear regulations.  Industrial parks being the platform for industrialization of Afghanistan requires legal frameworks that help businesses and industries operate smoothly.
MoIC Legal Affairs Directorate has developed the IP’s Procedure (Tarzulamal), as a legal roadmap, for better management and operation of IPs all over the country. However, it needed further development. Since, the inception of developing IPs procedure, the document was amended and revised many times, in each revised version of the procedure serious gaps and loopholes were covered regarding investment conditions, legal terminologies, and IP’s  development and maintenance. In addition, more clarifications were added to some ambiguous articles; additional articles were added to the procedure in each upgraded version.
This current legal procedure was prepared and revised by a team of technical experts with close coordination and cooperation of IP’s stakeholders. Unfortunately, the procedure still requires some reforms. To develop new industrial parks and expand the new ones, separate procedures are required for PPP IP’s, private IP’s, IP’s, and for the development, operation & maintenance of these IP’s. In addition, some annexes should be also added to the present procedure.
Low prices of plots: With the amendment of IPs’ legislations, there has been a decrease in prices of plots in these IPs. Now, every business minded individual can acquire property for their business activities wherever they desire with a nominal price of 50 AFS per square meter. This is to attract investment and encourage entrepreneurs. (KHAAMA PRESS)