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Afghan businesses slumping due to insecurity and corruption

in Afghan Business

Afghan businesses slumping due to insecurity and corruption

Construction companies say that construction works this year in Afghanistan have been greatly reduced compared to previous years.

As the foreign forces withdrawal time is approaching, construction works have shrunk by 50%.

Companies have expressed their concern about this issue and have called on the government to undertake measures to tackle the issue.

“We sell cement, plastic pipe, metal rods, board and other construction materials. At the moment our sales of these materials have reduced by 50%. Before we would have a busy schedule that we couldn’t even find time to eat on time, but now we are sitting idle most of the time.”

In addition to the concerns over the departure of foreign forces, persisting corruption and insecurity are the other two factors that have hit the construction business.

Over the past decade, construction works in Kabul and other provinces would proceed much faster, while now some of the businesses have been shut and some have been postponed.

Meanwhile, Washington Post quoted some U.S. officials concerns over unfinished construction projects in Afghanistan in one of its reports. The report also said that a major portion of the aid money for the reconstruction of Afghanistan has been spent towards war against insurgents.

Afghanistan Investment Support Agency (AISA) has confirmed the problems of private sector investors. The officials of the Agency have tied their hopes to the grants pledged by the world community for the improvement of investment in the private sector.

Wafiullah Iftikhar, Head of the Agency, said that plans have been taken on to deal with the problems of the private sector.

“We will hold a consultative meeting with construction companies in the near future. Though we are aware of some of their problems, we still want to listen to their ideas. We will then adapt our strategy accordingly. We will not any hesitate to take any step needed to help our companies.”

According to the information from AISA, 1000 construction companies are registered with AISA over the past few years. However, a large number of these companies have not begun their activities after obtaining their license.

Due to a halt on the construction works, general public in Kabul and some other provinces complain about the high prices of houses in the towns. They have asked the government to take serious measure against this difficulty.

مردم از حکومت خواسته که به خاطر حل این مشکل شان اقدامات جدی را روی دست گیرد.

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