Afghanistan Fact Sheet-Economic Environment

SOUND PUBLIC POLICIES

• Constant GDP growth: 29% (2002), 23% (2003), 8% (2004), 14% (2005), 5.3% (2006) and 7.5% (2007)
• Successful currency reform in late 2002 which stabilized inflation
• Mobilization of domestic revenue- from nearly 0 (2001) to 4+% of GDP (2003)

DEVELOPING INFRASTRUCTURE

• New road network connecting cities within Afghanistan to neighbours
• Creation of six industrial parks totalling more than 1,250 hectares (3,000 acres) to expedite professional, high quality industrial investments

FACILIATING INVESTMENT, ENCOURAGING BUSINESS

• Customs procedure streamlined and paperwork reduced by 90%
• Financial sector reform- newly autonomous Central Bank, private banks
• Investment laws allowing 100% foreign ownership
• Use of Multi-Investment Guarantee Agency to mitigate perceived risks
• Lowest import tariffs in the region (IMF Report January 4, 2005)
• Exports increased by 76% in 2003 and 46% in 2004 (IMF Report, Jan. 2005)
• Creation of Afghan Investment Support Agency by Presidential Degree

AFGHAN INVESTMENT SUPPORT AGENCY

• One-stop shop for investors (responsible for registration and licensing)
• Simplified investment process from 28 steps to 5
• Website: www.aisa.org.af