Afghanistan's trade relations with Central Asian countries are developing/$140 million agreements signed with Kazakhstan

Afghan Voice Agency (AVA) - Kabul: Abdul Salam Akhundzada Javad, spokesman for the Ministry of Industry and Commerce, said in an interview with AVA that trade relations between Afghanistan and Central Asian countries are expanding. He pointed to the successful holding of the Afghan-Kazakh Business Forum and announced the signing of 20 trade agreements worth $140 million between the private sector of Afghanistan and Kazakhstan, which were signed in the presence of Nooruddin Azizi, Minister of Industry and Commerce of Afghanistan, and Serik Zhumangarin, Deputy Prime Minister and Minister of Economy of the Republic of Kazakhstan.

 

Akhundzada said the Afghan-Kazakh Business Forum exhibition and the signing of these agreements in various trade fields were a sign of deepening economic relations between the two countries.

 

According to the spokesman of the Ministry of Industry and Commerce, Uzbekistan, Turkmenistan and Kyrgyzstan have already expressed their willingness to increase trade with Afghanistan and Afghanistan is establishing extensive trade relations with these countries.

 

What are the reasons why Central Asian countries are interested in investing in Afghanistan?

 

Economic experts say Afghanistan's growing consumer market, as well as its domestic resources and capacities, are the most important factors attracting investment to Central Asian countries.

 

Dr. Sayed Talib Alavi, a university professor, told AFP that foreign countries, especially Central Asian countries, see the Afghan market as an attractive consumer market given Afghanistan's negative trade balance and imports of billions of dollars of goods against low exports.

 

According to Alavi, Central Asian countries expect a significant share of the country's consumer market by developing trade relations with Afghanistan and increasing exports will benefit them.

 

On the other hand, Alawi believes that previous regional cooperation agreements have made Afghanistan a key path for regional economic cooperation, including participation in energy transmission infrastructure projects such as TAPI and CASA 1000. These countries can also make greater use of transport opportunities through Afghanistan, especially projects such as Afghan Trans, which demonstrates Afghanistan's important role in the regional transport corridor.

 

Afghanistan's economic growth in the shadow of the government is not recognized

 

Sayed Talib Alavi continued his speech by stressing the importance of taking advantage of regional opportunities and capacities and said: If countries move towards more use of regional economic cooperation, they cannot ignore Afghanistan. Therefore, Afghanistan can also seriously benefit from regional cooperation and the benefits of convergence.

 

According to Alawi, some regional and international projects, such as TAPI, were supposed to pass through Afghanistan. Attention to these projects and support from key international and regional institutions such as the Asian Development Bank can raise hopes for Afghanistan's economic prosperity even without a formal government.

 

Afghanistan's economic prospects are promising thanks to regional cooperation

 

Dr. Sayed Talib Alawi also stressed that Afghanistan undoubtedly has a lot of domestic potential for economic development and progress, but exploiting these potentials requires will, development plans and financial resources.

 

Alavi believes that Afghanistan needs to strengthen domestic production and financial resources to take advantage of its relative advantages, which unfortunately still faces limitations in providing the necessary financial resources and financing economic projects.

 

In addition, according to Alavi, the recently announced plan to cut government employees indicates a poor budget situation and in such an environment, there are few opportunities to implement development projects, which makes the future of Afghanistan's economy somewhat uncertain.

 

Competition of countries in the region in trade with Afghanistan; What is the country's interest?

 

Abdul Nasir Rashtia, an economic expert, also pointed to the increasing competition of Central Asian countries in trade interactions with Afghanistan, saying: "The more competition and Afghanistan can manage it properly, the more it will benefit the country.

 

According to Rashtia, Afghanistan is a country full of opportunities and its underground minerals are a good source of investment attraction and most countries in the region and neighboring countries are interested in investing in Afghanistan.

 

On the other hand, according to Rashtia, Afghanistan's geographical location has led most countries, especially Central Asian countries, to have good relations with Afghanistan.

 

"Central Asian countries are rich in oil and gas resources and are looking for new markets, while South Asian countries are facing severe energy shortages, so energy transfer is not possible without Afghanistan's cooperation," he said.

 

He believes that not only is Afghanistan interested in trade relations with Central Asian countries, but these countries also need access to South Asian markets and the port of Chabahar through this channel.

 

According to the economist, in the round of regional competition, the more the Afghan government tries to create the economic and trade situation in the region in favor of Afghanistan, the more it will lead to regional convergence and ultimately lasting peace and stability.
 

It is worth noting that the Minister of Industry and Trade of the Islamic State of Afghanistan announced on Tuesday last week at the Kazakh-Afghan Business Forum that 20 cooperation and trade agreements worth a total of $140 million have been signed between the private sectors of Afghanistan and Kazakhstan.

 

According to Nooruddin Azizi, these agreements provide the basis for cooperation in the fields of medicine, metals, textiles, automobiles, agriculture, construction materials and other economic sectors.