Afghanistan had a 2 percent GDP growth rate in 1395.
Government authorities say there were improvements in the domestic economy, exports, and investments including widening access to different commercial ports.
Suhrab Bahman, Ministry of Economy spokesperson, told the media that the government of national unity had estimated a 4.4 percent growth rate. GDP shrunk from nearly double digit figures to about 2 percent in 2014 with the withdrawal of foreign troops in Afghanistan and the scaling back of international aid – both governmental and non-governmental.
Last year the opening of new dry ports saw a 30 percent increase in exports, according to Central Statistical Organisation data. Also, investment in the energy sector – Afghanistan has suffered chronic power shortages – was an estimated 1.5 billion USD, of which over half was by the private sector. Tax collection has adhered to standards set by the World Bank and International Monetary Fund.
Reza Farzam, an economics lecturer at Kabul University, acknowledges improvements in tax collection. “The Afghan government has rolled out reforms in taxation in 2015 and 2016.”
Taxes collected from the private sector particularly gas and oil, and from airlines are the government’s major sources of revenue.
Farzam called the taxation of the private sector a “challenging issue” for the government as it could put off private investments and only lead to short-term gain.
Afghanistan became the 164th member of the World Trade Organisation (WTO) in December 2016 with promised benefits of access to new markets and global supply chains.
Farzam contends WTO membership “cannot be beneficial for us in the short term under the current situation because evaluations show that following the membership, Afghanistan lost 3.5 billion Afs (52 million USD) in income from customs tariffs.”
“Our internal investors don’t have the ability to compete with external products … this reduction in local products increases unemployment and poverty,” he concludes.
Nazarullah Enayat, press advisor in the Ministry of Economy says, “Afghanistan could get membership of WTO but there are still questions … To overcome economic problems (the government) is trying to solve the problem gradually.”
Meanwhile the inauguration of an International Chamber of Trade in Kabul has been praised as a milestone in the modernisation of trade in Afghanistan.
