Business
Afghanistan’s GDP to expand by 3% in 2021: ADB
The Asian Development Bank (ADB) forecasts that Afghanistan’s gross domestic product GDP growth will increase by 3% in 2021 and 4% in 2022 after the normalization of business activity and market sentiment.
In its Asian Development Outlook (ADO) 2021 released on Wednesday, the ADB stated that Afghanistan’s economic growth is expected to recover this year and accelerate next year after a sharp decline in 2020 from the coronavirus disease (COVID-19) pandemic and continued violence and instability.
“Afghanistan’s economy experienced unprecedented disruption in 2020 due to COVID-19 pandemic, political instability and continued violence, which cut remittances, trade, and revenue,” said ADB Country Director for Afghanistan Narendra Singru.
“With a successful COVID-19 vaccine rollout and post-pandemic recovery, the country should be on track to achieve economic growth this year and in 2022 as business activity and market sentiment normalize,” Singru said.
According to the report, inflation more than doubled from 2.3% in 2019 to 5.6% in 2020 driven by higher food prices. Food price inflation in 2020 was estimated at 10% with the highest spike recorded in April when border closure and panic buying propelled it to 16.6%. Inflation is projected to moderate to 5.0% in 2021 and 4.0% in 2022 as food supplies improve.
However, risks remain, including implementing vaccinations in remote and insecure areas, conflict, criminality, corruption, political instability, and broader social fragility. If unaddressed, these could weigh heavily on the economy and impede recovery.
“Supporting the recovery of micro, small, and medium-sized enterprises (MSMEs) hard hit by the pandemic is pivotal to safeguarding workers’ incomes and livelihoods, according to the report. Before the pandemic, MSMEs were estimated to provide nearly 1.6 million service and industry jobs. The government approved a 2-year support package worth $295 million in October 2020 to improve business conditions and implemented countercyclical measures that include support for MSMEs,” the report read.
The ADB suggests that Afghanistan should facilitate MSME access to markets by developing infrastructure, improving security, combating corruption, simplifying regulation, strengthening property rights and contract enforcement, and promoting innovation and better labor skills in order to improve the business environment.
“Increasing access to credit and further expanding the formal bank sector is also crucial,” the organization said.
“ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region,” the report concluded.
Business
Afghanistan showcases industry at key Central Asia expo
The exhibition brings together government officials, investors and manufacturers from across Central Asia and beyond, including participants from Russia, Belarus, Kazakhstan, Kyrgyzstan and Tajikistan.
Afghanistan is making a notable showing at the INNOPROM Central Asia, one of the region’s largest industrial platforms, as Minister of Industry and Commerce Nuruddin Azizi travels to Uzbekistan to attend the event.
The exhibition brings together government officials, investors and manufacturers from across Central Asia and beyond, including participants from Russia, Belarus, Kazakhstan, Kyrgyzstan and Tajikistan.
It is aimed at promoting industrial development, showcasing advanced technologies and expanding regional investment cooperation.
According to Afghanistan’s Ministry of Industry and Commerce, more than 60 Afghan companies are taking part, representing sectors such as cotton, coal, pharmaceuticals and agricultural products.
Officials say the participation highlights efforts to strengthen trade ties and position Afghanistan as a growing economic partner in the region.
INNOPROM Central Asia is widely regarded as a key platform for fostering industrial collaboration and unlocking new investment opportunities across Central Asia.
Business
Afghan commerce minister highlights trade trust and market stability at Antalya Forum
“The message from the Islamic Emirate of Afghanistan is centered around peace and peaceful coexistence,” Azizi stated.
Afghanistan’s Minister of Industry and Commerce, Nooruddin Azizi, underscored the importance of trust in trade and regional stability during a high-level panel discussion titled “Trust in Trade: The Future of Economic Integration and Stability in South Asia” at the 5th Antalya Diplomacy Forum in Türkiye.
In his remarks, Azizi emphasized the critical need for peace, stability, and stronger human connections between nations. He noted that the Afghan people have faced nearly five decades of hardship, and continue to endure challenges, including the ongoing issue of frozen assets, which limit the country’s economic potential.
“The message from the Islamic Emirate of Afghanistan is centered around peace and peaceful coexistence,” Azizi stated, highlighting the alignment of these values with both religious teachings and the aspirations of the Afghan people.
When asked about the impact of recent regional developments on fuel and liquefied gas prices, Azizi reassured attendees that Afghanistan had already taken proactive steps to mitigate potential disruptions. He shared that while global fuel prices had surged, Afghanistan’s fuel price increase remained modest—only 3 to 5 percent.
“This demonstrates effective planning and market management in securing the country’s fuel and gas supplies,” he added.
Azizi also expressed his gratitude for the Antalya Diplomacy Forum, praising Türkiye for its efforts in tackling global and regional challenges, including its stance on the situation in Gaza.
The Antalya Diplomacy Forum, which continues to serve as an essential platform for fostering regional dialogue, remains focused on economic cooperation, political stability, and addressing pressing global issues.
Business
Afghanistan moves toward self-sufficiency in car battery production
Afghanistan is making steady progress toward self-sufficiency in car battery production, officials from the Chamber of Industries and Mines said.
They noted that with consistent support from the Ministry of Industry and Commerce, particularly in facilitating investment, the country could become both a producer and exporter of car batteries by the end of the current year.
According to the Union of Car Battery Manufacturing Factories, a significant portion of domestic demand is already being met through local production, with full self-sufficiency expected in the near future.
Industry representatives also said Afghan manufacturers have begun exporting car batteries to countries in the Gulf region and parts of Europe, though further expansion depends on improved transport routes and export arrangements.
“Last year, for the first time in Afghanistan’s history, we exported car batteries abroad,” said Abdul Mateen Qalandari, Head of the Secretariat of the Chamber of Industries and Mines. “This year, we expect to export hundreds of containers.”
Manufacturers have called on the Ministry of Industry and Commerce to continue restrictions on lead exports and to prioritize the use of domestically produced car batteries in government procurement contracts.
Officials added that the number of car battery manufacturing factories is expected to reach 20 by the end of the year.
Afghanistan currently produces around 38,000 tons of car batteries annually, and industry leaders say local manufacturers have the capacity to further increase output.
“Factories are producing a wide range of car batteries in different sizes, meeting the needs of the domestic market,” said Abdul Salam Jawad Akhundzada, spokesperson for the Ministry of Industry and Commerce.
Officials from the Ministry of Economy emphasized that the development of domestic industries remains a top priority, adding that efforts are underway to create a more favorable environment for both domestic and foreign investors.
“In the past, car batteries were imported from countries such as Pakistan, Iran, Thailand, and China,” said Abdul Latif Nazari, Deputy Minister for Technical Affairs. “However, imports have now declined, and Afghanistan is on track to achieve self-sufficiency in this sector by the end of the year.”
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