Afghanistan Economic Outlook

October 2023

Afghanistan Economic Outlook, is a creative initiative of the Afghanistan Economic and Legal Studies Organization (AELSO) which reflects most important & the latest economic events that happened during a month in Afghanistan.

By reading this economic newsletter, that has designed in three languages (Pashto, Dari & English), you can get a wider overview of Afghanistan’s economic situation.

Exhibition of Women's Handicrafts Held in Capital

Businesswomen in the capital have held an exhibition for the purpose of marketing their handicrafts.

These women want the authorities of the Islamic Emirate to provide them with opportunities in the trade sector and to organize exhibitions abroad.

“For eighteen years, I have been doing the same crafts, such as beadwork, leather embroidery, Afghani cloths,” said Awlia Muhraban, a businesswoman.

“This is to showcase the works of women who were less seen and did not have such a role,” said Zuhal Ataye, a businesswoman.

Visitors said they consider such exhibitions to be beneficial for the growth of the country’s business.

“I think that holding such exhibitions, on the one hand, makes the society more dynamic and empowers the women and men of the society, those who are entrepreneurs…,” said Jawed Ahmadi, a visitor.

“Our request from the Islamic Emirate is that everyone should support us in the field we are in so that we can build a good future for our dear Afghanistan,” said Shugofa Ayani, a visitor.

Meanwhile, the Ministry of Information and Culture said that they support businesswomen in the country.

“Our brothers and sisters and compatriots who work in the sector, we appreciate their work and support … them,” said Muhajir Farahi, deputy of the ministry.

Earlier, the Ministry of Industry and Commerce said that after the establishment of the Islamic Emirate in the country, they have distributed work permits to more than a thousand women.

Exhibition Held for Agricultural Products in Kabul

The second deputy of the prime minister of Taliban said in the 29th exhibition of agricultural products that eighty percent of the workforce is working in the agricultural sector, and if attention is paid to the agricultural sector, it can create 1.2 million jobs in a decade.

Mullah Abdul Salam Hanafi said that 21 to 33 percent of the GDP of the country is agricultural products.

“Currently, the Ministry of Agriculture, the Ministry of Rural Development, and the Ministry of Energy and Water, each of them has been entrusted with the task of work in this regard,” said Hanafi.

The deputy PM for economic affairs, Mullah Abdul Ghani Baradar, said that 68% of the country’s food is made up of agricultural products, and he asked all government institutions to use agricultural products.

“I specifically ask the government departments to support agricultural products and meet their needs with agricultural products that have vitamins and healthy properties,” said Mullah Abdul Ghani Baradar.

The Prime Minister of the Islamic Emirate also said in a message that good grounds has been provided for the growth of agriculture in the country and asked investors to invest in the sector.

“Alhamdulillah, now that the occupation has ended and security has been ensured in all regions of the country, there is a good basis for increasing agricultural products,” said the Prime Minister.

“We have decided to divide Afghanistan into five parts…,” said the Minister of Agriculture, Irrigation and Livestock, Ataullah Omari.

Some of the participants of the 29th exhibition of agricultural products consider it beneficial to hold such exhibitions.

“It is very useful because many people who are girls cannot participate here, we can be role models for them and come here to participate in the exhibition,” said Sakina Ataye, a participant.

The exhibition continues for four days and the participants have displayed their products in 263 booths, including 56 booths for women.

Kabul to Participate in China's Belt and Road Initiative Summit

The Taliban delegation led by Noorudin Azizi, the acting Minister of Trade and Industry, arrived in China on Tuesday (Mizan 25th) to participate in the Belt and Road Initiative (BRI) forum happening on October 17-18.

A spokesperson of the Ministry of Trade and Industry said that the delegation is planning to meet with Chinese industrialists, traders, and investors on the sidelines of the BRI forum.

“The Belt and Road Initiative is an economic-commercial project in which Afghanistan can play a key role in the shortest way to countries of Middle East, Europe, and the Gulf. The acting minister of Trade and Industry will also talk about the Wakhan corridor while participating in the summit,” said Akhundzada Abdul Salaam Jawad, spokesman at the Ministry of Trade and Industry.

Meanwhile, the acting minister of the Ministry of Borders and Tribal Affairs, in an interview with state-run RTA, said that he was optimistic about the opening of the “Silk Road” between Afghanistan and China.

“The Silk Road is a transit door and is of great importance, we will have great achievements in both economic and political sections there,” Said Noorullah Noori, the acting Minister of the Ministry of Borders and Tribal Affairs.

Analysts said that the geography of Afghanistan was crucial in extending China’s Belt and Road Initiative for connectivity and transit development among regional countries.

“The presence of Afghanistan in the summit is big opportunity which has to be taken advantage of, we need to have relations with the entire world and use our interaction with the world in developing our economy and trade,” Said Azraksh Hafizi, economic analyst.

“The geographic location and natural resources of Afghanistan will give the country the opportunity to play a key role in the Belt and Road Initiative,” said Siar Quraishi, economic analyst.

It comes as The Nation, a Pakistani biweekly magazine, has reported that the participation of the Islamic Emirate in the BRI summit was a significant in the evolution of international diplomacy.

Afghanistan exports LPG storage tanks to Uzbekistan

A private company in Herat manufactures LPG storage tanks and has signed a contract for exports to Uzbekistan.

The company’s officials say that around $2 million have been invested in the factory and the construction of each storage tank costs about $25,000.

“We have a five-tank contract with Uzbekistan. These are the samples of tanks. If they accept the samples, the next contract will be 16 tanks, and the next contract will be 30 and 35 tanks,” Mohammad Akbar, the company’s director, said.

Hamidullah Khadim, head of Herat Chamber of Industries and Mines, said: “Manufacturing and exporting gas storage tanks is not easy. Maybe this is a small step in the eyes of some people, but I think that today we took the most fundamental step in industry.”

Local authorities in Herat emphasized on the importance of quality of domestic products. The governor of Herat said that in order to gain people’s trust and use domestic products, it is necessary for domestic companies to pay attention to the quality of their products.

“We are proud to say that the food items produced in Herat industrial township can compete with the region in terms of weight and quality,” Noor Ahmad Islamjar, the governor of Herat, said.

This company can produce storage tanks with a capacity of 500 kg to 100 tons.

Medical supply factory worth $25 million inaugurated in Kabul

A plasma volume expander producing factory with an investment of $25 million has been inaugurated in Afghan capital Kabul, the Ministry of Industry and Commerce said on Monday.

TJL Pharmaceutical factory, which was built in Pul-i-Charkhi Industrial Park, has the capacity to produce 110,000 bags of different types of plasma volume expander every 24 hours. This factory has provided employment for more than 1,000 people.

Speaking at the inauguration ceremony, Deputy Minister of Industry and Commerce Qudratullah Jamal said: “The private sector has played a very important role in the prosperity of the country and it creates job opportunities for our youths.”

He also asked the people to use domestic products for the development of the country’s industry.

Meanwhile, the industrialists also asked the commerce ministry to pay attention to the distribution of land to the industrialists, the elimination of power outages in industrial parks, and the increase of import tariffs on materials in which Afghanistan is self-sufficient or is becoming self-sufficient.

Plasma volume expanders (PVEs) are fluids given intravenously to increase or retain the volume of fluid in the circulatory system.