Afghanistan is heavily dependent on foreign aid for government functioning and private investment in infrastructure is negligible. This has led to high poverty levels and lack of livelihood opportunities due to poor infrastructure. To achieve sustainable development goals of eliminating poverty and hunger within 15 years, Afghanistan should focus on developing its horticulture and mineral sectors by using foreign aid to build roads, irrigation structures, and other public infrastructure that attracts private investment. The government also needs to establish an enabling environment for private sector financing by implementing business friendly policies around permits, land and utility access, rule of law, tax reform, and insuring against risks.

1. Role of private sector in financing
Development in Afghanistan
By
Chidambaram. CT

2. Who are the audience ?
Policy makers of
Afghanistan

3. Present status of Afghanistan
• Heavily dependent on ODA for government
functioning
• Private investment in public infrastructure
negligible
• Poverty very high due to lack of livelihood
opportunities
• Poor infrastructure

4. From here to where?
36 % of population
below poverty line
11 Million people
Sustainable
development goals
1. No poverty
2. No Hunger
Time : 15 years

5. Bright areas to work with
• Excellent prospects for developing
horticulture sector
• Plenty of Mineral wealth for
industrial development

6. What is needed?
• Investment in public infrastructures
such as roads and irrigation
structures
• Enabling environment for private
sector financing for Development

7. How to go about?
1.ODA funding should be used in
infrastructures that will crowd in private
investment in horticultural sector
• Investment in building roads
• Store houses and Processing facilities – PPP
• Building irrigation infrastructure to support
horticulture

8. 2. Enabling investment environment
– Ease of establishing a company -
permits
–Supportive in land acquisition and
utilities services
–Establishing rule of law
–Tax reform for honest tax payer
– 5 years 100 % repatriation of earning
– Insurance against risks

9. Thank you