PRESS RELEASE

AFGHAN MINISTRY OF COMMERCE

22 March 2003

Further to our recent official visit to London, United Kingdom we are pleased to announce that the governments of the United Kingdom and Afghanistan have agreed to work together in further developing Afghanistan’s burgeoning private sector.

In particular, the United Kingdom Department of Trade and Industry has vowed to render assistance to Afghanistan’s reconstruction efforts by:

Supporting the visit of fifteen UK company and sector representatives to Afghanistan (under the auspices of the British Consultants and Construction Bureau).

Supporting an alliance between the UK and Afghan Chambers of Commerce. The UK Chamber’s membership comprises over 135,000 businesses from small and medium sized enterprises to local and regional subsidiaries of multinational companies, in all commercial and industrial sectors.

Working together through the Trade and Investment Consultative Group in Kabul to revise Afghanistan’s domestic and commercial legislation and to explore possible markets for Afghanistan’s products.
Helping improve Afghanistan’s trade capacity and take-up of EU preferences.

Supporting British Council’s efforts to establish an office in Kabul.

The Transitional State of Afghanistan has done much over the last 12 months to boost the country’s trade and investment prospects. A summary of recent achievements include:

With the involvement of MIGA (a subsidiary of the World Bank), commercial organisations are able to obtain insurance for sovereign risk including terrorism

The government has introduced the Investment Laws, which are the most liberal in almost any country in the world, allowing total transferability of funds, in local or foreign currency, and 100% ownership of businesses by foreigners.

Our currency, the Afghani, was recently converted in a major project even by world standards, and the scheme was vastly seen as successful, resulting in a much stronger local currency

Afghanistan was recently granted the GSP by the US government, allowing Afghan made goods duty and quota free access to the US market

Afghanistan has had similar arrangements with Japan (LDC), and the EU.

Afghanistan recently executed a tri-partite agreement with India and Iran, allowing Afghan traders the use of the port of Chabahar in Iran, linked by a paved highway to the Afghan border the distance being a 1000km shorter trip than the Bandar Abbas road

Afghan traders will be able to own property in the Chabahar Free Trade Zone and enjoy reduction of port fees of 90%, while Afghan drivers will be able to drive across the border into Iran all the way to Chabahar
The Afghan government is currently in the process of expediting the establishment of an international banking presence in the country.

India would grant a 50-100 percent concession on 38 imports from Afghanistan including dry and fresh fruits, seeds, medicinal herbs and precious stones.

The Indian government has agreed to fund the construction of a 210km stretch of highway from Zaranj to Delaram thereby linking the Chabahar route to the main Afghan ring road. This project is expected to cost approximately $70M.

Office of His Excellency Sayed Mustafa Kazemi
Minister of Commerce
Chairman of the Investment High Commission
Kabul, Afghanistan


For further information, please contact:
Dr R Naweed
Chairman of the Advisory Board
Special Ministerial Envoy
+93 702 76 153
[email protected]