(MENAFN- Daily Outlook Afghanistan) stepping up commercialexchanges and promoting trade and transit are highly essential for Afghanistanto tackle economic challenges. Afghanistan is seeking to enhance connectivityand link itself to regional states to lift people out of poverty and capitalizeon the economic potentials for public betterment.
Afghanistan is a fastgrowing emerging market of strategic importance close to some of the largestand fastest-growing markets in the world, Afghanistan is strategically locatedbetween the energy-rich republics of Central Asia and the major seaports inSouth Asia providing a key transit route for central Asian oil and gas tomarkets in South Asia as well as overseas.
It has been statedthat Afghanistan holds greater than one trillion dollars' worth of mineralresources, including gold, iron, copper, aluminum, gemstones, chromite,Sulphur, and talc.
In terms ofagriculture, a source said that 'about 85% – 90% population in rural areas isengaged in the agriculture sector which plays a vital role in the livelihood of76% of the total population. It is responsible for about a quarter of thecountry's Gross Domestic Product (GDP) in the recent years. Fresh fruits, vegetables,nuts, olive, wheat, maize, sugar can, sugar beet, barely, dairy, honey,poultry, meat, milk, fish, sunflower, sesame, linseed, saffron, cumin and aniseare the agricultural products of Afghanistan.
After 2015,Afghanistan's economic growth raised from one person to two percent andgovernment and private sectors started investing in several economic sectors.For instance, Afghanistan was linked to Turkmenistan through Aqina port, it wasalso connected with Uzbekistan via railway and its route creating the way totrade with China. Afghanistan opened the Lapis Lazuli corridor, whichfacilitated trade and transit with Turkmenistan and some of the Asian andEuropean countries. Moreover, Chabahar port increased Afghanistan's tradevolume.
Last month,Afghanistan signed Memoranda of Understanding (MoUs) with Turkmenistan in a bidto expand rail network and increase energy import and attract investment.Afghan Acting Finance Minister Mohammad Humayon Qayyoumi is cited as sayingthat the MoUs are aimed at attracting investment for the Torghondai-Herat andAqina-Andkhoi rail networks and increasing 110 megawatts of electricity importfrom Turkmenistan to Farah province via Herat's Shindand district.
Afghanistan opened aircorridors with some countries, including India and China to support privateenterprises and businessmen to export Afghanistan's products, which includedried fruit, fresh fruit, saffron, and precious stones. Although the aircorridors will not address the current huge economic constraints, they willmitigate the challenges to some extent. For example, the price of water melondropped drastically despite the recent inauguration of air corridors, whichdiscouraged a number of farmers.
In addition toexporting the country's agricultural products overseas, those products shouldalso be exported across the country. That is, the government has to seek abalanced development through connecting far provinces to capital cities. AChinese saying goes that if you want to be rich, you must build roads at first.It suggests that connectivity plays a key role in economic development. Roads,which include all sea, air, and land routes and airports, will link a countryto the region and the world and a remote province to large cities. Thus,building roads and enhancing connectivity contribute much to a country'seconomy.
Illegal mining deals astrong blow to Afghanistan's economy. Militant fighters and strongmen andinfluential figures are said to be involved in illegal mining and smugglingAfghanistan's precious stones outside the country. Afghanistan has to bring theillegal miners to justice and prevent illegal mining immediately. Moreover,mineral resources have to be secured.
Generally speaking,although Afghanistan has a strategic geographical location with mineralresources and huge labor forces, economic constraint continues unabated. Thereare two main challenges before the economic development. First, militancyhampers economic activities and discourages businessmen and NGOs to invest inthe country. With lack of investment and enterprises, unemployment will surgeup. Second, corruption and the existence of corrupt figures within thegovernment's body and illegal activities of strongmen also lead to poverty.Corrupt figures must be prosecuted and fined seriously.
To enhance the economyand lift citizens out of poverty, the government has to focus on bothfacilitating trade and campaigning against any factors which hamper economicdevelopment. The government has to promote connectivity and seek balanceddevelopment. That is, a platform for economic activities should be provided forall citizens and provinces so that all could participate and benefit.Meanwhile, the government should upgrade the country's agriculture.
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