Doing business in Afghanistan continues to be challenging, with complicated processes to follow, and weak laws and regulations that are erratically implemented. These bureaucratic roadblocks divert time, energy and resources away from productive business activity, and encourage businesses to move across the border or remain small and informal to avoid detection by enforcement officers. Afghanistan's economy is largely driven by informal deals, which ignore or circumvent formal market rules.
What is currently being done
The Government of Afghanistan has made reform of the business environment a priority. It recognizes that an improved legal and regulatory environment is a key contributor to many of its priority reform areas, including tackling corruption, restoring fiscal sustainability and rebuilding private sector confidence.
In 2014, the Government committed to improving the business environment by significantly reforming licensing and registration procedures, including streamlining and unifying the system for issuing and renewing trade and investment licenses. The Government has pledged to support the formation of a One Stop Shop for private businesses.
How Harakat-AICP will support this
Together with the Ministry of Commerce and Industries (MOCI), Harakat will support the Government's commitments to improving Afghanistan's legal and regulatory environment. The aim is to simplify processes for businesses, including starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts and resolving insolvency.