Challenges for Investors in Afghanistan: Documented History from the Ministry of Commerce and Industries

Mohammad Sohail Akbari and Mohammad Mirwais Rasa

MPRA Paper from University Library of Munich, Germany

Abstract: Afghanistan urgently requires substantial investment to generate employment, stimulate economic growth, and achieve economic self-reliance. However, persistent structural and political challenges have created a hostile environment for investors. Since 2015, the country has faced significant capital flight as existing investors withdraw and potential investors remain hesitant due to insecurity, widespread corruption, fragile economic infrastructure, and weak regulatory frameworks (Safi & Sharma, 2019). These barriers have undermined economic confidence and hindered the inflow of both domestic and foreign capital. This study examines the primary challenges encountered by domestic investors in Afghanistan. It provides actionable recommendations to strengthen economic governance, enhance institutional capacity, and promote an investment climate conducive to sustainable development.

Keywords: Domestic investment; Capital flight; Economic challenges; Economic infrastructure; Investment climate (search for similar items in EconPapers)
JEL-codes: H11 H13 K1 K11 (search for similar items in EconPapers)
Date: 2025-05-12, Revised 2025-09-13
New Economics Papers: this item is included in nep-env
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