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

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  • Akbari, Mohammad Sohail
  • Rasa, Mohammad Mirwais

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.

Suggested Citation

  • Akbari, Mohammad Sohail & Rasa, Mohammad Mirwais, 2025. "Challenges for Investors in Afghanistan: Documented History from the Ministry of Commerce and Industries," MPRA Paper 126242, University Library of Munich, Germany, revised 13 Sep 2025.
    • Handle: RePEc:pra:mprapa:126242
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    JEL classification:

    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • H13 - Public Economics - - Structure and Scope of Government - - - Economics of Eminent Domain; Expropriation; Nationalization
    • K1 - Law and Economics - - Basic Areas of Law
    • K11 - Law and Economics - - Basic Areas of Law - - - Property Law

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