New Delhi: Seeking investments in a range of sectors, Afghanistan Industry and Commerce Minister Alhaj Nooruddin Azizi on Monday said his government is ready to offer five years of tax breaks to firms investing in new sectors, including gold mining.
Speaking at an interactive session organised by the business chamber Assocham, Azizi said tensions with Pakistan are creating hurdles in trade.
“There is a huge potential available in Afghanistan. You will not find a lot of competitors. You will also receive tariff support, and we will be able to give you land. The five-year tax exemption will be given to companies that may be interested in investing in new sectors,” the minister said.
On production incentives, he said, “We have economically oriented policies…So if the production increases by 20% we increase govt support, which would keep on increasing as production increases.”
At the event as well, joint secretary in the Ministry of External Affairs, M Prakash Anan,d said that both sides agreed to post trade attaches in their embassies to boost trade and revive the joint working groups on trade, commerce, and investment. He also mentioned that air corridors on the Kabul to Delhi and Kabul to Amritsar routes were activated and cargo flights on these sectors would start soon.
Azizi also spoke on several logistical hurdles Afghanistan faces, including the border closures with Pakistan, blocked transit routes via Chabahar, and frozen foreign reserves worth $9.3 billion, which were blocked by the US after the Taliban took over Afghanistan. “Americans block our funds; they have frozen $9 billion and block our trade routes. Pakistan blocks one side. What are we supposed to do?” he said, asking India to help ensure the trade route from Chabahar Port remained functional so that the trade remained commercially viable.
He added that Afghanistan was willing to offer financial discounts and invest alongside India and Iran to speed up work . “We are here for one purpose – to find the lowest-cost route,” he said, “If there are ships needed, we will support it. If transport companies are needed, we will support it. If logistics need infrastructure, we will support it. We also invite the private sector to invest with us.”
