Afghanistan

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Afghanistan is located in the heart of Eurasia, and since time immemorial, has been at the crossroad of cultures, between the People's Republic of China and the Middle East, and between South Asia and Europe. After 25 years of various conflicts, Afghanistan is now in the process of rebuilding physical infrastructures and the economic foundations of the country.

— Ministry of Foreign Affairs

Afghanistan in CAREC

Afghanistan joined CAREC in 2005
Since 2005, $2.05 billion has been invested in transport, trade, and energy
Afghanistan currently has 15 ongoing CAREC projects
To date, a total of eight CAREC projects have been completed

CAREC Contacts

CAREC-related Projects

Transport Network Development Investment Program, Tranche 1
	Sector: Transport	Date approved / Status: 12 October 2011 (Ongoing)
	Expected outcome: The first tranche of the investment program will rehabilitate and expand major sections of Afghanistan's road and railway networks, further improving domestic and regional connectivity while widening access to social and economic opportunities. The overall program will facilitate investment in key strategic industries, including mining and related services, resulting in growth, jobs, improved welfare and trade.
	Funding amount: $189 million (Asian Development Bank) $33 million (Afghanistan Infrastructure Trust Fund)

Emergency Road Rehabilitation Project
	Sector: Transport	Date approved / Status: 19 December 2003 (Completed)
	Expected outcome: The grant-financed activity of the project will help the government rehabilitate and reconstruct key infrastructure in the transport and energy sectors that was damaged during two decades of conflict and neglect.
	Funding amount: $20 million (Japan Fund for Poverty Reduction) (Asian Development Bank)

Road Network Development Project 1 (Bala Murghab to Leman)
	Sector: Transport	Date approved / Status: 28 September 2007 (Ongoing)
	Expected outcome: The project will contribute to the growth of Afghanistan’s domestic and international trade due to higher levels of mobility and supply of intercity, inter-provincial, and international transport services; increased levels of service on critical road sections; and increased service life of the regional road network.
	Funding amount: $176 million (Asian Development Bank)

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Feature

High Council set up to boost economy. Led by President Hamid Karzai, a High Economic Council was created to improve Afghanistan's economic situation. Read more.
Afghanistan fastest-growing economy in South Asia. The Global Economic Prospects 2013 said Afghanistan registered an 11% growth in 2012. It emerged as the fastest-growing economy in South Asia. Read more.

Previous features

Economic Outlook

Highlights from the Asian Development Outlook 2012:
Full responsibility for security is to be handed over to the government by end-2014 as international troops are withdrawn. Since economic development (as well as security) has depended heavily on aid and international military spending, the transition will require the country to ﬁnd new sources of growth and ways to achieve ﬁscal sustainability, in an uncertain security environment. These challenges will require major domestic eﬀorts and reforms alongside substantial external support by donors if development momentum is to be sustained. Read more.