Afghanistan may not need higher levels of foreign aid if the economy continues to grow outside the areas of conflict.
There is a slow but steady implementation of projects for mining of natural resources, connecting villages with cities
Afghanistan may not need higher levels of foreign aid if the economy continues to grow outside the areas of conflict.
There is a slow but steady implementation of projects for mining of natural resources, connecting villages with cities, self-sufficiency in grains and increase in exports of fresh produce and dry fruits. Officials in the Export Promotion Agency say exports of fresh and dry fruits has climbed to 55,000 tonnes, which is 15 tonnes more than last year.
Mustafa Hashemi, the agency’s head, says there are more cold storage centres and better stocking of perishables. The major export markets are Pakistan, India, United Arab Emirates, central Asia, the Netherlands, Germany and other countries.
Lutfullah Rashed, spokesperson of the Ministry of Agriculture, says yields of melon, watermelon and other fruits and vegetables have increased this year. The climate has favoured fruit farmers; and, the government has better programmes. Farah province is a pioneer in agriculture.
An area of 1,650 jeribs has been covered with vegetables – an investment of 22 million dollars – which will give 800 tonnes of yield every day. Some 3,500 farmers are employed to grow an estimated 10 million USD of crops.
According to Rashed, every day some 70 trucks stuffed with watermelons are taken from Farah to other provinces and across the border. “I can say that Farah is a unique province from the viewpoint of producing vegetables and fruits,” he says.
The cultivation of the cash crop, saffron, which was propagated in 2003 is now spread over 900 hectares. It will yield 4 tonnes of the world’s most expensive spice this year. Some 95 percent of the country’s saffron fields are in Herat, according to Hamidullah Nasiri, the head of extension department in the provincial agriculture directorate.
Killid’s research reveals that most of the country’s demand for wheat is met by farmers here. While 750 million tonnes are grown in Afghanistan, wheat imports are down to half a million tonnes. Agriculture Minister Asadullah Zamir says the ministry has stocks of some 35,000 tonnes of wheat and 34,000 tonnes of sugar in case of emergency.
Agriculture is the country’s main export. Its value has risen to 515 million dollars since 2013. This is despite the fact that only 12 percent of land here is arable.
Counting on China
Afghanistan could become a big exporter of iron and copper within the next 10 years. President Ashraf Ghani shared this dream with his Chinese counterpart Xi Jinping on June 24. He said the country would use its water resources to mine and extract, and export the metals to Pakistan and India. “Afghanistan has the capacity also to produce 80,000-150,000 MW of solar energy,” Ghani declared. Wooing Chinese investors, he said his country was a good base for them since it links them with central Asia and east Asia through South Asia.
Afghanistan needs to establish a rail network, gas pipelines, and rehabilitate the highways; also, modernise the irrigation system and train youth for jobs. He told the Chinese to invite a delegation of Afghans to get constructional experience and brainstorm on what areas in Afghanistan interest Chinese investors.
Rural development
The Ministry of Finance (MoF) plans to link every village to a main road by 2018. It intends to conduct a survey that would be shared with the Ministry of Rural Rehabilitation and Development (MRRD) and Ministry of Public Works. The finance ministry says some 2,550 kms of road, as well as 2,600 bridges would be constructed in three years.
Shafiq Ahmad Qarizada, head of policy department in MoF told journalists on March 29 that the government would spend some 332 million USD on the road works. “USAID, WB (World Bank), ADB (Asian Development Bank) and the UK’s DFID has promised to finance the roads’ project so we don’t have problem regarding the funding,” he said.
On the benefits of road construction, Tareq Esmati, deputy in the roads’ programme in MRRD said it would create myriad possibilities of livelihoods in rural areas.
Myriad schemes
In the face of lingering concern about developmental activities with the withdrawal of foreign forces, the MRRD says it plans to implement some 19,800 projects throughout the country. Naseer Ahmad Duranai, the new minister for rural development, says some 420 million USD would be spent the projects, the bulk of which – some 380 million USD – would be provided by foreign donors.
“There are 19,800 projects that would be implemented by end of 2016 – some them this year,” he said.
MRRD has signed some 45 contracts with heads of CDCs (Community Development Councils) in Balkh, Samangan, Baghlan, Badakhshan, Kunar and Laghman provinces for implementing the projects for roads, bridges and rehabilitation of irrigation systems. The ministry has also launched reform efforts to tackle administrative corruption. All previous contracts will be reviewed and evaluated for transparency, and the results uploaded on the MRRD website.
Salma dam
Construction on the dam built with financial support of the Indian government which started in 2006 is weeks away from completion, according to Asiludin Jami, deputy governor of Herat. The irrigation canals would be handed over within a month, Jami quoted officials in the Indian consul in Herat as saying. “Indian authorities have promised there is no problem regarding the usage of water from Salma dam and its inauguration would take place soon,” he said. The Salma dam would generate some 42 MW of electricity.
Customs revenue
Earnings on the border, which were down last year because of prolonged political uncertainty over the elections, are again rising. Ajmal Hamid Abdulrahimza, spokesperson for MoF, says customs revenue rose by 7 percent in the first 6 months of the fiscal year. According to Ajmal, the specified target was 133.789 billion Afs last year (roughly 2.2 billion USD) and the revenue collected was less than a third. However, in the first six months of this year, the collection was touching last year’s – 54.98 billion Afs (910 million USD). The target for the year is 123 billion Afs (2 billion USD).
In the pipeline
Apart from ARTF or the Afghanistan Rehabilitation Trust Fund, supported by 33 donors and administered by the World Bank which has allocated some 8 billion USD, the government has pinned hopes on the 1,000 MW power project which will take electricity produced in Tajikistan and Kirghizstan through Afghanistan to Pakistan. Energy-starved Afghanistan would get 300 MW of power as transit fee. Work on the project which also started in 2006 will be completed in 2017, according to officials.
APTA or the Afghanistan-Pakistan Trade Agreement will be replicated with Tajikistan. There is also the possibility of India joining in. Musafer Quqandi, spokesperson for the Ministry of Commerce and Industries says should Tajikistan join, Afghanistan would be able to connect Central Asia to South Asia.
Officials at the 21st meeting of TAPI, the ambitious pipeline from Turkmenistan to Pakistan and India through Afghanistan have discussed the fourth and fifth developmental phase, according to the Ministry of Mines and Petroleum. Work would start by year-end, and the project handed over for utilisation by 2018.
Turkmenistan is expected to sign a contract with the French oil company Total, according to authorities in the Ministry of Mines and Petroleum.
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