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Corruption and Insecurity Cause Factories to Shutdown in Herat

in Afghan Business

Corruption and Insecurity Cause Factories to Shutdown in Herat

130 factories are shut down in the industrial city of Herat due to bureaucratic processing through the government , lack of electricity, water and security.

According to Hamidullah Khadim, Head of Industries Union, 180 factories are actively working in Herat now, while 130 factories are closed down.

A number of businessmen have handed the payment for the land for the factories to the government, but since the past 2 years  they have not been given their lands due to corruption in the government agencies, bureaucracy, and complications in the procedure, says Mr. Khadim.

He further added that many businessmen have made investments worth millions of dollars in the establishment of factories, while the government has not made any effort in the area of investment since the past decade. In fact, there is no such policy concerning investment. He also said that Hamid Karzai in a meeting with a group of businessmen in Herat has acknowledged the failure of the government in promoting investment since the past 10 years.

 In the meeting with Sayed Rahman Rahmani, Head of the Economic Commission of the National Assembly, and a group of the Commission’s members, a number of businessmen complained about illegal tariffs, corruption in the customs and insecurity as being the major hindrances in their business.

For instance, the municipality charges more than 30,000 afs per container of their goods without any legal receipt. They warned the government to give their attention to these problems which may otherwise cause them to stop investing in the country.

Mr. Bahaduri, Herat Representative and member of the Economic Commission of the National Assembly, said that the objective of the visit of the Commission to Herat was to analyze and find solutions to the problems of the businessmen and industrials.

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