Afghanistan needs a new economic development strategy, experts say

Almaty. July 31. Silkroadnews - The Agency for Protection of Investments (AISA) has accused the government of Afghanistan in the absence of a coherent economic development strategy, informs Afghan News Agency (AfTAG).
The newly appointed head of the AISA Hakdzho Karbala Mohammad said that the Agency plans to prepare an amendment to the national law of the investment to restore investor confidence and increase the flow of investment into the country. It is noted that the country has seen a 30% decline in foreign investment.
In addition, many economic analysts urge the Afghan government to identify priority areas for investment and supporting businesses in these areas.
AISA is responsible for issuing licenses to companies wishing to invest in Afghanistan. It also works to promote and attract investment into the country.
In June 2015 the US Agency for International Development (USAID) announced a new program of $ 13.3 million, in order to facilitate private sector firms doing business in Afghanistan.
In addition, the International Finance Corporation (IFC) will implement in Afghanistan a 4-year program of investment climate reforms. The program will work in the national and provincial levels in order to stimulate economic growth and increase competitiveness of the country.
There are three main program areas: improving the legal framework and regulatory environment for companies in the national and provincial levels; optimization of procedures that impede private sector operations; encouraging the growth of investment in key sectors.
As recalled AfTAG, last year's annual report of the Afghan Chamber of Commerce and Industry (ACCI) showed a negative business climate in the country's largest cities. According to the survey, the instability is the first indicator of the business climate, accompanied by a lack of market supply and demand, poor infrastructure, administrative barriers and lack of access to finance.