English | دری

Business confidence dwindles, as BSA swings in the wind

in Afghan Business

Business confidence dwindles, as BSA swings in the wind

Olympics - Opening CeremonyUnsure about Afghanistan’s security situation, businessmen and investors have begun withdrawing or stalling their capital and assets.

Business confidence tumbled after President Hamid Karzai refused to sign the Bilateral Security Agreement (BSA)–an essential security pact that determines the magnitude of US forces’ presence in Afghanistan.

The 2014 deadline, when foreign forces are scheduled to withdraw from Afghanistan, has had a profound adverse impact on investment in Afghanistan, as investors became reluctant to risk their capital or assets due to security uncertainty.

Endorsing the BSA would guarantee a close military partnership between the U.S. and Afghanistan in the years following the NATO troops withdrawal in 2014. While the 2,500-member Loya Jirga expressed their approval of the agreement, President Karzai issued an ultimatum in the last minute of the Jirga demanding the US to fulfill his  3 preconditions: 1) Cease raids on Afghan homes 2) Breakthrough in talks with the Taliban and 3) Transparent elections in April.

Not sure what political motives exist behind this move from President Karzai; it is, however, certain that the longer the BSA is delayed, the more the economy suffers.

Business insiders have reported that large scale investments and business deals have withdrawn or stalled in recent days.

Real estate industry has considerably shrunk and property prices are plunging. The Afghani currency is losing value against the US dollar. Unemployment is on the rise, and young people are seeking for job opportunities outside of Afghanistan.

The refusal to sign the BSA is  yet another example of how Afghanistan’s economy becomes a victim of politics.



Related Articles

Over 10,000 families benefit from projects in Khost province

About 10,245 families have benefited from 42 development projects that have been implemented in Zazi Maidan, Tanai, Bak, Sabary, Musakhil,

New building for the Tribal Affairs Department inaugurated in Kunduz

A new building for the Department of Borders and Tribal Affairs was inaugurated in northern Kunduz province. Funded by the

Afghanistan’s 2014 budget approved by Lower House

The Lower House of the Afghan Parliament approved the budget for the year 2014 by majority. The first draft of

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.