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AFGHANISTAN BUSINESS

INDUSTRY

Afghanistan produced more than 70% of the world's opium in 2000, and about 80% of the opiate products in Europe.

The small manufacturing sector produces textiles, chemical fertilisers, leather and plastics.

FOREIGN TRADE

Limited resources and its land-locked position, foreign trade plays an important role in the economy of Afghanistan.

The main exportsare natural gas, raisins, dried fruits and nuts, fresh fruits and vegetables, carpets and rugs, handicrafts, wool and hair, raw cotton, karakul skin, hides, leather-ware and medicinal herbs.

The main importscomprise petroleum products, trucks and cars, various machinery, textile and yarns, foodstuffs and edible oils, sugar, chemical products and other consumer goods and construction raw material.

Main markets and partners for Afghan exports are: Germany, UK, UAE, Pakistan, India, Japan, Denmark, Belgium, United States, Czech Republic and Russia.

Domestic trade: The closure of the Salang Tunnel has created many difficulties for domestic merchants, as they are no longer able to bring the agricultural products of the north to Kabul and to other parts of the country via Kabul. Even in blockaded areas, merchandise continues to move, albeit in smaller quantities and with more difficulties.

Cross-border trade:Cross-border trade in domestic goods and foreign commodities has increased between Afghanistan, Pakistan and Turkmenistan over the past several years. Both Pakistan and Afghanistan benefit from cross-border trade.

Afghanistan’s exports display considerable diversity. Main aim is to finance essential imports by exports. The great demand for many export items of Afghanistan in the international markets is a positive factor.

Attempts are aimed at expanding existing industrial capacities to meet domestic demand for edible oils, sugar, textiles, footwear, fertilizer, cement, etc. Priority is given also to improvements in processing industries to promote the export of such goods as hides and skins, leather-ware, animal casings, medicinal herbs and spices, dried and fresh fruits.


 

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