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Afghanistan Urges US Investment as Sanctions and Projects Stall

Afghanistan Urges US Investment as Sanctions and Projects Stall
Afghanistan seeks US rethink amidst economic sanctions, stalled projects: Reports · thehansindia.com

Afghanistan wants the United States to help build businesses and major projects in the country.

Its foreign minister especially mentioned mining, roads and other infrastructure, farming, and trade.

Many projects supported during the earlier international military presence were not finished or did not work as expected.

Reports say about $145 billion was set aside for reconstruction and related activities by June 2021.

Some money helped security, government programs, development, and humanitarian aid.

Problems included corruption, insecurity, and poor management of funds.

Afghanistan’s economy grew for many years, but it depended heavily on foreign aid.

The Afghan foreign minister wants better future cooperation with the United States.

He says sanctions should be removed and the US Embassy should reopen, but American troops should not return.

Key facts

Reconstruction appropriations
Nearly $145 billion had been appropriated for reconstruction and related activities by June 2021.
Security spending
$88.6 billion of the cited total was allocated to security.
Governance and development
$36.3 billion was allocated to governance and development.
Humanitarian assistance
$4.2 billion was allocated to humanitarian assistance.
Mining investments since 2021
Kabul has announced more than $7 billion in mining investments involving countries including China and Iran.
Estimated mineral reserves
Separate assessments cited in the report estimate Afghanistan’s mineral reserves at at least $1 trillion.
Economic growth
The World Bank reported average annual growth of more than 7% from 2000 to 2019, while GDP increased by 180%.
Foreign aid dependence
Aid averaged nearly 60% of GDP during 2000-2019 and was around 45% of GDP in 2019.

Quotes

SIGAR report

Assessment cited in reporting on US reconstruction spending in Afghanistan

“Security, effective governance, sustainable infrastructure, regional cooperation, and stronger domestic production and exports are also essential”
thehansindia.com
“How these resources were used and how effective they were also remained under scrutiny”
thehansindia.com

Sources

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