Writer: Ibrahim Ahmadi
Afghanistan witnessed 11% economic growth in the past ten years.
Back in 2003, Afghanistan economic growth was 15% which valued about $4.592 billion; it was a time when Afghanistan new started development after years in isolation under economic sanctions.
Meanwhile the economic growth in 2011 was 3,2 which valued $16.343 billion which shows that Afghanistan has the capacity of further development and the current opportunities were not utilized effectively.
Agriculture, industry, and services are the three main factor upon which the economy growth and downfall depends a lot.
Meanwhile, agriculture control 28.4%, industry 21.35% and services 49.84%, while the economic rations of these three factors in 2003 were 49.50 agriculture, 21.30 industry and 30.20 services.
Out of these three economic pillars the economy of Afghanistan mainly depends on agriculture which directly effects the economic growth of the country.
Moreover, continue drought, lack of investment in agriculture sector or its derivation to other sectors such as demining have threaten advancement of vital agriculture sector.
According to the survey conducted by National Aeronautics and Space Administration (NASA) shows that as many as 30% mass of Afghanistan has natural resources such as iron, copper, gold, Latium, uranium, gas, crude oil and others which is yet to play a vital role in the economy of Afghanistan, however, the government need to attract large scale investment in this sector to witness decisive change in the economy of Afghanistan.
Merits of Investment in Demining Sector
- Investment in demining sector could enable the extraction of natural resources which have been underground for thousands of year and its beneficiaries will be Afghans.
- Besides the extraction of natural resources, investment in this sector would help construction other necessary infrastructure such as roads, buildings, railways, dams and residences which are vital in country like Afghanistan
The government of Afghanistan can utilize the revenue from demining sector in other vital construction and rehabilitation projects.
- Generated revenue from mines sector can help improve the trade deficit of Afghanistan.
Currently Afghanistan is facing problem with trade deficient which need to be address on emergency bases.
The trade balance of Afghanistan is $5 billion comprised from $4.720 import and $320 billion is export.
The asymmetry between export and import threatens the economy of the country in the future in the future when foreign investment and assistance decrease.
- Investment is the best weapon to control inflation, meanwhile, Afghanistan is facing waves of foreign inflation and investment in mines sector can repulse the growing price hike of goods and services in the country.
- Foreign investment can accelerate economic activities in the country.
Afghanistan is often faces pressure from its neighbors in trade and commerce.
Development in mines sector can safeguard the economic interest of Afghanistan in the region which will help in sustainable economic growth of the country.
- Besides, several other opportunities investment generate employment, 70% of the current population of Afghanistan consists of youths, while eight million Afghan can work out of which four million are unemployed .
Many Afghan travels abroad mainly to Pakistan and Iran for work that’s way generation of working opportunities at home become extremely essential.
- The extraction work at mine site would guarantee peaceful environment because lawlessness is harmful for both investors and the workers.
Prompt implementation of demining would help the economy of Afghanistan to grow rapidly.
Every kind of investment ensures economic activities in the area and the people of the area become prosperous simultaneously.
Article consist writer’s point of view which the Pajhwok Administration publishes without change.
