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The Taliban plan to convert former foreign bases into special economic zones

KABUL, Feb 19 (Reuters) – The Taliban government will move ahead with plans to convert former foreign military bases into special economic zones for businesses, the acting deputy prime minister for economic affairs said in a statement on Sunday.

The acting trade minister told Reuters in December that his ministry was working on the plan for ex-US bases and would submit it to both the Economic Affairs Committee, led by incumbent Deputy Prime Minister Mullah Abdul Ghani Baradar, and the cabinet for approval.

“After a thorough discussion, it was decided that the Ministry of Industry and Trade should gradually take control of the remaining foreign military bases with the intention of converting them into special economic zones,” Mullah Baradar said in the statement.

He added a pilot plan would begin to convert bases in the capital Kabul and northern Balkh province.

Afghanistan’s economy has struggled and aid agencies have warned of a severe humanitarian crisis since the Taliban took power in 2021 when foreign troops withdrew after 20 years of war.

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The takeover triggered a cut in development funding, a freeze on foreign central bank balances and sanctions on the banking sector.

The Taliban government’s decision to ban most women NGO workers from work last year caused many aid organizations to partially halt their work, while millions remain in need of humanitarian assistance.

The Taliban have said they are focused on increasing economic self-sufficiency through trade and investment. Some foreign investors have expressed concern over a series of attacks, including one on a hotel popular with Chinese businesspeople, alleged by the Islamic State.

However, the World Bank has also noted that exports have increased and the Taliban government has managed to keep revenues largely constant in 2022.

Reporting by Mohammad Yunus Yawar and Charlotte Greenfield; Edited by Emelia Sithole-Matarise

Our standards: The Thomson Reuters Trust Principles.

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