English | دری

Afghanistan’s security accord essential for economic stability

in Afghan Business

Afghanistan’s security accord essential for economic stability

bsaWhile a majority of the 2,500-member Consultative Loya Jirga agreed to the Bilateral Security Agreement text, President Hamid Karzai has refused to sign the agreement.

Karzai ended the Jirga in a rather dramatic fashion by insisting that “America cannot kill anyone in their homes.” He laid out three preconditions to the US to agree upon: cease raids on Afghan homes, breakthrough in talks with the Taliban and transparent elections in April. He would not sign the agreement until after the April elections.

Meanwhile, the White House insists the deal must be signed before the end of this year to enable the US and NATO allies to plan for a potential post-2014 military presence.

If the BSA remained unsigned, the US would be left with the “zero option”–pulling all of its forces out of Afghanistan by 2014– a phenomenon  that has already haunted many investors in Afghanistan.

Apprehensions about the deteriorating security situation of Afghanistan after 2014 have resulted in capital flight.

The World Bank has predicted Afghanistan’s economic growth to reach 3.5% in 2014, down sharply from 14.4% in 2012.

Endorsement of BSA that determines the size and scope of a US presence in Afghanistan after the NATO combat mission ends in December 2014 will bring peace of mind to the business community of Afghanistan. The longer the BSA is delayed, the more damage the economy of Afghanistan will face that will result in further capital flight and unemployment.

Two of the major economic sectors of Afghanistan that are hit hard by the wobbly security situation are the construction sector and the mining sector.

The Afghan Chamber of Commerce and Industries (ACCI) have also demanded early signing of the bilateral security accord to curb capital flight and ensure economic stability.



Related Articles

New health and education projects completed in northern Takhar

Two new development projects completed with German assistance have been completed in the north of Takhar province. In Farkhar district

Pakistan yet to respond to Afghanistan’s APTICA meeting request

The Afghan Ministry of Commerce and Industries (MoCI) is still awaiting Pakistan’s response in regards to holding the seventh Afghanistan-Pakistan

3G License Awarded to MTN

The Third Generation (3G) license worth USD 25 million (1.2 billion afs) was awarded to MTN telecommunication company by the

No comments

Write a comment
No Comments Yet! You can be first to comment this post!

Write a Comment

Your e-mail address will not be published.
Required fields are marked*

Time limit is exhausted. Please reload the CAPTCHA.