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Afghanistan

Afghanistan profile

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(Last updated: 15 Jun 2009)


Current business situation

Exporters should be aware that Australia maintains United Nations Security Council sanctions in respect of Afghanistan. These sanctions require Australian organisations and individuals to comply with a range of measures and, in general, also apply extraterritorially to Australian nationals overseas.


Sanctions may include export and import restrictions, prohibitions of technical assistance, training and financing, travel sanctions, and financial sanctions against specific persons and entities.


See the following Department of Foreign Affairs and Trade website for more information about sanctions: www.dfat.gov.au/un/unsc_sanctions/unsc_sanctions_whatare.html.

For information about United Nations sanctions currently in force, please see: www.dfat.gov.au/un/unsc_sanctions/index.html

For information about the operation of the defence and strategic goods export control regime, please see: www.defence.gov.au/strategy/dtcc.

 

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Country facts

Capital city: Kabul
Surface area: 652,000 sq km
Population: 28.9 million
Official language(s): Pashto, Dari
Head of State and Head of Government: President HE Mr Hamid Karzai
Australian exports to Afghanistan: A$16,426,000
Australian imports from Afghanistan: A$416,000
Afghanistan's principal export destinations: India, Pakistan, USA
Afghanistan's principal import sources: Pakistan, USA, Germany
(Source: Department of Foreign Affairs and Trade - Country economic fact sheet)

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Economic climate

Afghanistan has endured 25 years of war, leaving much of the country in tatters. There is very little functioning infrastructure. Even in Kabul there is only the barest backbone of a phone network left, power supplies are intermittent at best, and accommodation is in very short supply. As the number of international agencies and personnel grows, the pressure on accommodation and services is growing acute. As such, prices have escalated rapidly. While some parts of the city show little evidence of war, most parts have sustained significant damage, while others are completely destroyed.


The International Security Assistance Force (ISAF) has been successful in bringing stability to Kabul, but security remains the major issue that prevents a great deal of economic activity. These  concerns have continued to hinder the implementation of aid projects by multi-lateral agencies.


More positively, the streets of Kabul reverberate to the sound of an industrious and entrepreneurial people whose priority is to rebuild their lives and city. The markets are a hive of activity and there is a semblance of normality returning.


Another East Timor?

While there are similarities, the scale and magnitude of the problems in Afghanistan does make this a different scenario. The reconstruction of Afghanistan is at least 30 times the size of East Timor. Contacts in UN and multi-lateral organisations do take note of the experience suppliers have gained from an environment such as East Timor, but this should not be over-stated. There are as many differences as similarities.


The geography is also quite different. Kabul is closer to Europe, Russia and Turkey than to Australia. Several European countries, most notably Germany, have had a considerable presence in Afghanistan prior to the problems of 1979, and onwards. The high profile of the ‘War on Terror’ and the sums of money pledged at the Tokyo Donor’s conference in January 2002, mean that the level of competition will be quite intense.


For a more complete history of Afghanistan, as well as an overview of its geography and structure, please visit Afghanistan Online.

For the latest key economic indicators and statistics, please see the Department of Foreign Affairs and Trade country economic fact sheet.

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Political climate

Austrade continues to monitor developments in Afghanistan through the office in Islamabad. The political situation in the country remains the greatest determinant of commercial activity.

For further information please contact Austrade on 13 28 78 or email info@austrade.gov.au

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Trade relations and statistics

Please see the Department of Foreign Affairs and Trade country economic fact sheet for key trade statistics.

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OECD Guidelines for Multinational Enterprises

Multinational Enterprises should be aware of the OECD Guidelines for Multinational Enterprises that provide voluntary principles and standards for responsible business behaviour in a variety of areas, consistent with applicable domestic laws. These Guidelines are endorsed and promoted by the Australian Government. For more information, go to the ANCP website.

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Disclaimer

Austrade makes no warranty, express or implied as to the fitness for a particular purpose, or assumes any legal liability for the accuracy or usefulness of any information contained in this document. Any consequential loss or damage suffered as a result of reliance on this information is the sole responsibility of the user.