This document provides background information and progress report on regional economic cooperation for Afghanistan ahead of the Third Regional Economic Cooperation Conference on Afghanistan (RECCA III) in Islamabad. It discusses Afghanistan's role as a land bridge connecting Central and South Asia, its policies supporting regional cooperation, and achievements in areas like trade, transit, transportation and energy. Key recommendations include advancing practical cooperation, public-private partnerships, capacity development, and accelerating projects in energy, transport, trade and other sectors to better integrate Afghanistan regionally.

1. ISLAMIC REPUBLIC OF AFGHANISTAN
MINISTRY OF FOREIGN AFFAIRS
THIRD REGIONAL ECONOMIC COOPERATION
CONFERENCE ON AFGHANISTAN ( RECCA III )
ISLAMABAD, 13 – 14 MAY 2009 (23 – 24 SAUR 1388)
PROGRESS REPORT SINCE THE SECOND REGIONAL ECONOMIC
COOPERATION CONFERENCE ON AFGHANISTAN – NEW DELHI

2. Regional Economic
Cooperation Conference on
Afghanistan
• Background:
• Objectives,
• Kabul Conference,
• Delhi Conference
• Recommendations

3. The importance
of regional economic cooperation
• It is increasingly recognized that regional
cooperation can improve country’s
competitiveness.
• It is widely accepted that regional cooperation
is becoming an important tool for achieving
sustainable growth and poverty reduction,
• Integral part of the globalization strategies of
almost all neighboring countries of Afghanistan

4. Afghanistan
and regional economic cooperation
• The unique position of Afghanistan as a land
bridge,
• Connecting four RECOs to each other,
• Shortest distance between Central and South
Asia,
• Disadvantages, advantages and responsibilities

5. Afghanistan’s policy towards
regional cooperation
• RC is the corner stone of foreign economic
policy,
• One of the chapters of ANDS is devoted to RC,
• National economic policies and the regional
economic strategies and policies,
• Joining major regional organizations, and
measures taken (legal, administrative and
institutional)
• Afghanistan’s vision of regional cooperation

6. Afghanistan intends to:
• a) improve trade and transit
opportunities;
• b) integrate itself with the regional rail
and road networks;
• c) be an important partner in regional
energy markets;
• d) eliminate narcotics trade; and
• e) achieve Millennium Development Goals

7. Afghanistan’s Achievements
Trade and Transit
• Trade facilitation,
• Border infrastructure, border control and management;,
• Plan to build transit facilities, 15 land ports / crossing
points
• Transit,
1)Reactivation of Afghanistan’s contracting party status to the
Customs Convention on the International Transport of goods under
Cover of TIR Carnets (Geneva 14 November 1975),
2) Extensive training of freight forwarders, in coordination with
AFFCO
• 47 bilateral, regional and multilateral trade agreements,
10 agreement under negotiation

8. Trade and Transit
• Regulatory improvements,
• Private sector development strategy in support
of trade, 10 commercial laws benchmarked till
end of 2009
• Afghanistan Central Business Registry (ACBR)
launched on September 27, 2008, is a “one-stop
shop” for registering businesses in Afghanistan
• Simplified procedure at MoFA and AISA to
expedite registering process

9. Transport Corridors:

10. Transportation
• Mountainous landlocked country with an area of
652225 sq km,
• Improving road network,
• National Highways – 3363 km,
• Regional Highways- 4884 km,
• Provincial Roads - 9656 km,
• Rural Roads - 17000 km,
• Ring road
• Rail road

11. Labor Migration
• Prospects
• Importance of providing vocational training
1) National Development Skill Program
2) AKDN program,
3) Other vocational training programs
• Challenges
• Complexities of concluding agreement with
recipient countries,
• Plight of migrant workers and realities on the
ground

12. NEPS Construction and Rehabilitation
Activities

13. Energy
• Afghanistan’s Energy Vision for the Future
• Current Status of Cross Border Energy Trade,
• NEPS,
• Our plans, 10 medium size and large hydro power projects over the
next 10 - 20 years which will generate over11,000 MW,
• Planning responsibly,
• Coal and greenhouse
• Central Asia-South Asia Regional Electricity Market (CASAREM)
• A main route for energy trading between Central and
South Asia.

14. Recommendations by previous conferences
and our expectations
• Advancing practical aspects of RC,
• Centre for Regional Cooperation,
• Public-Private partnership
• Existing regional groupings should consider integrating
their efforts into a larger single entity,
• Capacity development,
• Credibility and confidence building measures,
• Focus on practical win-win projects, notably in the
fields of energy, transport and trade, agriculture and
mining.

15. • Better information sharing on key issue, and aviation
liberalization,
• Accelerating the work on TAPI,
Suggestions to participants of RECCA III /
expectations
• The regional countries need to further synchronize the
idea of “centrality of Afghanistan” while formulating their
national foreign economic policies.
• Funding should be provided for the projects identified,
• Public private partnership should be encouraged,
• A mechanism to facilitate and expand labor migration
should be identified at the earliest,

16. • To endorse and provide funds for the establishment of Regional
Cooperation Center in Afghanistan,
• Funds for the renovation of the airports mentioned in the PR should
be provided,
• Building railway infrastructure in Afghanistan should be given
serious consideration, most countries in the region can not reap the
full benefit of trade in the absence of railway connecting
neighboring countries of Afghanistan to each other.
Note: There is a number of other issues mainly of
technical nature. Distinguished participants can find the
details in the Progress Report distributed by the
Secretariat of the Conference.

17. Thank you for your attention