Mohammad Ehsan Sadiq

Abstract

Afghanistan is a least developed country and one of the world’s poorest,  as decades of war have devastated almost the whole of its infrastructure. Afghanistan has large and sizable mineral resources including oil and gas that have great potential to contribute to the country’s economic growth and development. Exploration of these resources through the private sector not only increases government revenue but could also be a good alternative to the foreign aid. Although this country owns vast oil and gas reserves, it still imports almost all its fuel needs from abroad. The investment process in this sector is facing a number of obstacles. This study tries to introduce the oil and gas industry of Afghanistan, as well as analyzes the key challenges impeding the development of the industry. In order to determine the existing obstacles in the sector a field research among three groups including experts, companies and governmental organizations has been conducted.  As the findings indicate, insecurity, corruption, poor infrastructure, capital access limitations and lack of skilled labor in the country, are the most important challenges based on their arithmetic average. Among these challenges, insecurity and corruption are nationwide problems affecting almost all sectors.

 

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