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Economy of Afghanistan


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the main drivers for the current economic recovery is the return of over 5 million expatriates, who brought with them fresh energy, entrepreneurship and wealth-creating skills as well as much needed funds to start up businesses. For the first time since the 1970s, Afghans have involved themselves in construction, one of the largest industries in the country. Some of the major national construction projects include the $35 bn New Kabul City next to the capital, the Ghazi Amanullah Khan City near Jalalabad, and the Aino Mena in Kandahar. Similar development projects have also begun in Herat in the west, Mazar-e-Sharif in the north and in other cities.

In addition, a number of companies and small factories began operating in different parts of the country, which not only provide revenues to the government but also create new jobs. Improvements to the business-enabling environment have resulted in more than $1.5 billion in telecom investment and created more than 100,000 jobs since 2003. The Afghan rugs are becoming popular again and this gives many carpet dealers around the country to expand their business by hiring more workers.

Afghanistan is a member of SAARC, ECO and OIC. It is hoping to join SCO soon to develop closer economic ties with neighboring and regional countries in the so-called New Silk Road trade project. Foreign Minister Zalmai Rassoul told the media in 2011 that his nation's "goal is to achieve an Afghan economy whose growth is based on trade, private enterprise and investment". Experts believe that this will revolutionize the economy of the region. Opium production in Afghanistan has soared to a record in 2007 with about 3 million people reported to be involved in the business but then declined significantly in the years following. The government started programs to help reduce cultivation of poppy, and by 2010 it was reported that 24 out of the 34 provinces were free from poppy grow. In June 2012, India strongly advocated for private
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