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Why economic crisis in Afghanistan?

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Why economic crisis in Afghanistan?

 In an open Jerga, describing the main reason behind economic stagnancy in the country, Hazrat Omar Zakhilwal, the minister of finance said any elections with several months prolonged stalemate in the results lays negatively impact on the economic situation. 

In an open Jerga held here in Kabul, he said the elections begun last year, and the ambiguous decisions to announce the results, alongside increasing insecurity, while the country depends in foreign donors aids could essentially be problematic.
Afghanistan deputy chamber of commerce and industries, Khan Jan Alokozay also said the economic situation of the country was worsening, particularly since a year. Unemployment remarkably increased amid deteriorating security.
“No demand in the market. No investment enough to help stand up economy and there is no opportunity for the investors with $50,000 or $100,0000 in the country, said Alokozai arguing a possible insecurity would loom if the election’s results failed to be announced soon.
Some small enterprises with 60 percent investment suffered heavy losses, while many of them at least 10 percent, he said adding insecurity, kidnapping, terror, corruption and unsafety of investment are not in the country, where the merchants could face harsh danger from what he said a negative impact of the recently long stalled political crisis.
“The merchants import goods for only one week fearing that the situation may worsen amid the still unsolved election challenges,” said Alokozay.
Governor of the country’s central Bank (Da Afghanistan Bank), Norullah Delawari described banking system and said the situation is getting worsening, particularly during the recent three months leading economic situation deteriorating, with the people withdrawing at least ten percent of their money from the bank and transferring to foreign.
“According to the money policy, we collect prices from the market, with the wholesalers pile up the goods in their stocks and start selling, but as we have information, they are even expressing concern and waiting for a week,” he Delawari.
Head of economic commission for the Wolesi Jerga—house of people, Fatema Aziz said the people of Afghanistan went to the polling stations to cast their votes in a bid to institutionalize democracy, but they are disappointed by the recent stalemate in the election results.
She said the long stalemate in the election process had caused challenges not only in the country’s economy, but also affected all situations.
According to her, insecurity is increasing with some circles at home and beyond the country are trying to use the ongoing critical electoral situations in their own interest.
She said if the people were informed about such a wrong condition, they would have not go the polling centers for voting.
Head of money exchangers’ union in Sara-e-Shahzada, Khan Mohammad Baz expressed grave concerns over the ongoing political crisis and said the currency exchange center enjoy special importance for them, but the stalemate in the election results pushed up a USD to reach from 57 to 58 and sometime higher than it.
Baz said within a week the suffered up to $50 million losses, $200 million in a month and similar billions during a year.
Alokozay once again pointed finger on the country’s security forces for failing to bring a sure security in the country, as he said the main concerns of the people and investors are from insecurity and armed men.
“600 fuel tankers had been set ablaze with no one taking responsibility and 12 parking lots looted and set on fire,” he said blaming the security forces for losing trusts from the people.
Minister of finance also called a secure investment space of ten to twenty years too important for the investors to establish factories in the country.
According to him, sure security, guarantee, sure political situation, endorsing law for investors safety are conditions should be met by the government in order to insure a bitter economic system in the country.
He said no problem who would be the next leader of the country, but indeed a stable government would help investment develop in the country, but Da Afghanistan Bank governor, Delawari said the main issue was that where could secure the country’s revenue as Afghanistan is depended on foreign donors aids since the last 12 years.
In the main time, Zakhilwal said Afghanistan had suffered over $5 billion and nearly $6 billion from personal capital had fled the country, mostly from the prolonged stalemate in the election process.
He feared if once the government failed to pay the employees’ salaries and face a harsh crisis if the country repeatedly had similar elections costing millions of dollars losses every other five year.
Political instability had also caused fleeing investment from the country, deputy chamber of commerce and industries, Khan Jan Alolozai expressed concern.
Fatema Aziz in the conclusion said if both presidential runners agreed on a broad-based government with experts in the lead, the country hoped to embrace a better economy.
 The participants of the Jerga who had also came from the provinces, asked both presidential candidates to leave political disputes aside and agree on forming a government based on the people demand. Shukria Kohistani