World Country Guide

Business Profile

Economy
24 years of continuous war completely wrecked the Afghan economy. Reconstruction of the agricultural sector, which accounted for about half of GDP, has been severely hampered by abandonment of farms and the huge number of minefields. Agricultural problems have led to recurring food shortages. Afghanistan has had to rely heavily on foreign aid. Many farmers have come to rely on growing opium as a relatively lucrative cash crop – both the Taleban and now the Karzai government have attempted to limit production, with mixed success. The industrial sector, which barely functions, was formerly concentrated in mining and some manufacturing. There are significant deposits of natural gas, coal, salt, barite and other ores. The small manufacturing sector produces textiles, chemical fertilisers, leather and plastics. Some trade links have been established with the former Soviet Central Asian republics but Pakistan and Saudi Arabia are now the strongest economic influences in the country. The Karzai government has applied for membership of the World Trade Organisation and is likely to receive observer status.

Business
Price bargaining is expected and oral agreements are honoured. Formal wear is expected and meetings should be pre-arranged. Office hours: Generally Sat-Wed 0800-1200 and 1300-1630, Thurs 0800-1330.

Commercial Information
The following organisations can offer advice: Afghan Chamber of Commerce and Industry, Mohammad Jan Khan Watt, Kabul (tel: (2) 290 090; fax: (01) 287 458); or the Federation of Afghan Chambers of Commerce and Industry, Daraulaman Wat, Kabul.