At times when there is a pressing need for more foreign and domestic investments, according to figures the investment in Afghanistan has decreased. Afghanistan is a country where every sector requires investment – mining, construction, energy, telecommunication, agriculture, transport, education are only a few. The main reason behind decreasing level of investment is considered to be the deteriorating security conditions in the country.

All other hurdles for attracting foreign investments could be some-how treated but brining betterment in the security situation solely depends on the political will and capability of our government. The withdrawal plan of international forces and the reconciliation process which can possibly put all development in Afghanistan over the last ten years at stake has caused the concerns of investors to multiply. Investment in Afghanistan bears huge risk. Such hindrances have caused the economic prosperity to remain a dream in Afghanistan.

One sector that is being seen as hope to change this dream in reality is the mining sector. The worth of natural resources of Afghanistan has been estimated between one to three trillion dollars. More than thirty years of war and low capacity of government organizations have caused these natural resources to remain under-utilized. The mining contracts Afghanistan government has entered – copper in Logar and Iron in Bamiyan – seem difficult to initiate until and unless security improves.

The sources, on which the economy of the country highly depends, today, are temporary, that is foreign aids and therefore there is a sense of uncertainty about the economy and this takes away the trust of investors. Afghanistan is no attractive market for foreign investors and most of the investments by Afghans and Afghan institutions (e.g. banks) are made abroad which yields very little benefits to our economy.

In the post-Taliban government, some important measures have been taken to encourage business in Afghanistan but again the worsening security condition remains the greatest constraint. Security issues have increased the risk factor of operating a business in Afghanistan. When Afghans themselves are not ready to invest in their own country, how come foreigners can be attracted?