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Outline:
§ Overview
§ Domestic business efficiency and competitiveness
§ Social priorities
§ Development priorities
§ Conclusion
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Overview
§ Services currently account for over 60 percent of
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global production and employment
Actually volume of international trade in services is
much larger due to unmeasured ways of supplying
services and absence of reliable statistics
South Asia 1.5 billion people, 20% of world.
Afghanistan population 30.5 million.
Policies affecting trade in services
The investment law is liberal
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Contin..
§ Total FDI in Afghanistan reached US$ 83 million
§ The share of FDI is 2.2 % and services 43% in GDP.
§ Annual average services GDP Growth rate is 17%.
§ US FDI: US$ 6.5 million. Turkey: US$ 4.3 million,
and India: US$ 2.6 million
§ Total trade in services US $ 3062 million.
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Agribusines
s, 1.6
Telecom, 4 Air
transport,
3.9
Main Sectors receiving FDI
26%
41%
33%
Banking,
61.5
Construction
Services
Industrial
Specific services (million U$S)
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Personal,
Cultural &
recreational
services, 2.36
Government
services, 39.52
Transportation,
430.53
Travel, 142.78
Communication,
113.2
Other business
services, 1085
Royalties &
license fees, 41.31
Computer &
Information , 5.98
Construction,
1058.94
Financial,
270.9
Insurance, 45.14
Total trade in services (million US)
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Domestic business efficiency and
competitiveness
§ The process drives broad legal and institutional reforms that
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improve the business environment and the competitiveness
of Afghanistan
General policy to promote open and effective competition
among service providers.
Subject to regulation of services via transparent licensing
procedures with minimum requirements.
Reduce cost of doing business, and improve business
environment and competitiveness.
Conducive to the development of efficient competitive
Afghan service suppliers with new technologies.
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Social priorities
§ Give priority to qualified Afghan nationals over
foreigners holding same level of qualifications.
§ Access to finance for the people such as mobile
banking and Islamic banking.
§ Wider access for Afghan consumers at competitive
prices.
§ Technical know-how, better quality jobs and
generate employment
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Development priorities
§ Human Capacity building to regulate services.
§ Increase fiscal revenues.
§ Main theme in ANDS for poverty reduction.
§ Diversify economy.
§ Greater development for new industries in transport
& logistics, tourism and IT sectors.
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Conclusion
§ Our service sector is largely open evidenced by our market access
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offer on services in WTO accession process.
Afghanistan launched WTO services negotiations at the WTO in the
year 2012 and anticipate to conclude in the next two months.
Eliminated unjustifiable non-tariff and administrative barriers,
established an attractive trade and investment environment which
reduced the cost of doing business for our producers and service
providers and encourage investments in our small economy. This
will increase the competitiveness of our goods and services
domestically and abroad.
Research and analysis will need to continue in the services sector.
Specifically: sector impact analyses, revenue impact assessments,
trade flow, output, employment and investment.
The process of WTO accession is as important as accession itself –
creating an environment conducive to trade, building capacity in
public and private institutions, attract investment and encouraging
partnership between private and public sectors.
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Thanks
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