An investigation shows Afghan traders imported 239 million USD of new and used clothes for resale over three years.
The figures from Central Statistics Organisation (CSO) show the imports were valued at 123 million USD in 2013, 62 million USD the following year and 54 million dollars in 2015. Roughly 80 million USD has been drained from the country on clothes sold in stores and on the street every year.
The imports are satisfying a basic need that is not fulfilled by domestic garment manufacture, which is mainly by small garment units.
According to authorities in the Afghanistan Chamber of Commerce and Industries, garment production requires very high investment, and investors are not prepared to risk their money.
An estimated 90 percent of clothes sold in Afghanistan are imported. Mohammad Qasem Kubari, a deputy statistician in CSO reveals figures from 2013 to 2015 that separately calculate the amount spent on clothes for men and women – both new and used garments that may be second and even third hand.
In 2013, 43 million USD worth of new men’s clothing was imported. Clothing for women brought into the country was worth 17 million USD. The value of second hand garments that year was 36 million USD. In 2015, the same figures were 22 million USD for men’s garments, 11 million female clothing and used clothes, 19 million USD.
An interesting sociological observation is that more clothes for men are imported than women. In 2015, the value of male garments was double that of female clothing. CSO keeps separate track of imports of new clothes for children.
Officials in the Afghanistan Chamber of Commerce and Industries believe the decrease in value of garment imports from 2013 to 2015 is likely to be a reflection of the reduced earning capacity of individuals and slowdown in the economy as a result of increasing conflict and insecurity.
Made Abroad
New garments sold in Afghan markets are mainly imports from China, Iran, Pakistan, India, Tajikistan, United Arabic Emirates, Turkey and the US. The list of origin of used clothes is much longer: Australia, Belgium, China, Sudan, Germany, Iran, Ireland, Japan, Korea, Saudi Arabia, India, Tajikistan, Thailand, United Arabic Emirates, Turkey, Britain and the US.
Musafer Quqandi, the spokesperson for the Ministry of Commerce and Industries, says there are few takers for Afghan-made garments unlike imported clothing.
There was a time when garment manufacturing was big business. The first machine-made textile factory was set up in 1953 in the Gulbahar area of Kapisa. The factory owned 2,500 weaving machines, 52,000 spinning jenneys and employed 14,000 workers. Later on Afghan Textile, Bagrami Textile and other factories were established. Afghanistan before the 1980s exported garments.
On June 7, 2015, the Indian government announced that it would provide comprehensive assistance to reactivate the Afghan textile industry. Aid in this regard has been inserted in a memorandum of understanding (MoU) that was signed between the Afghan Ministry of Commerce and Industries and the Indian ambassador in Kabul. India’s Ministry of Textiles would provide technical help to the private sector and Afghan government in capacity building, expansion of investment and developing skills.
Based on the MoU a joint working group would be established and work on programmes to rehabilitate the textile industries in Afghanistan. Quqandi, the spokesperson for the commerce and industries ministry, did not say anything about implementation of the MoU but confirms ongoing talks with India on the growth of textile industries in the country and assistance in helping cloth production in Afghanistan. Neither did he say whether there would be any attempt to revive former Afghan textile factories.
Local enterprise
The local clothing industry has to contend with insecurity, power cuts and raw material shortages, says Sayamudin Psarlai, spokesperson for the Afghanistan Chamber of Commerce and Industries. He told Killid of individuals who have invested in small clothing businesses like Istanbul Dress in the Afghan capital. Owner Naser Muhibzada says he started his business with a modest budget of only 500,000 Afs (7,460 USD) and six sewing machines six years back but now employs 200 workers and the business is worth “many million Afs”. The daily output is 500 sets of formal and informal wear, which are sold through 10 outlets across the country. Muhibzada wishes there were textile factories in Afghanistan. He complains that he spends 3 million Afs (44,800 USD) on importing cloth and other materials required for the business. The only thing that is not expensive is labour, he says.
Clothes are not cheap, and prices have doubled since 2016. A pair of pants for men, which cost 700 Afs (11 USD) two years ago is now 1,500 Afs (22 USD). Similarly, a traditional Afghan dress for women, which was 500 Afs (7 USD) is now 1,000 Afs (14 USD).
Timor Shah is one of the shopkeepers in Park Mall in Shahr e Naw, Kabul city. He says most of what is in his store is imported and expensive because it has been paid for in foreign exchange. The Ministry of Finance says garments that are imported pay not just 10 percent custom duties, but 6 percent tax to the government and an additional 2 percent tax for the Afghan Red Crescent Society. The taxes on bales of fabric are 2.5 percent custom duties, 6 percent tax and 2 percent Red Crescent Society cess.
