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Understanding the Markets in Construction Materials in Afghanistan

Understanding the Markets in Construction Materials in Afghanistan

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Published by Victor394

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Published by: Victor394 on Feb 11, 2012
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Case Studies Series
UNDERSTANDING MARKETSIN AFGHANISTAN:A case studyof the marketin construction materials
This publication is being made available in working draft form. The paper is beingreleased as a resource to benefit policymakers and researchers working inAfghanistan and is not a final publication. As such, it has not been edited by AREUor the World Bank for clarity.
by Sarah Lister and Zainiddin Karaev
Understanding markets in Afghanistan: a case study of themarkets in construction materials
Sarah Lister and Zainiddin KaraevAfghanistan Research and Evaluation UnitJune 2004
List of figures and boxesAbbreviations1. Introduction
 2. The construction sector in Afghanistan
3. Construction materials and their supply
43.1 Cement 43.2 Wood 103.3 Steel and steel products 113.4 Bricks 123.5 Aggregate and sand 133.6 Other manufactured goods 14
4. Market issues
154.1 Prices 154.2 Credit 184.3 The transport sector 184.4 The actors in the construction business 19
5. Government regulation
245.1 Administrative and tax issues 245.2 Import procedures 255.3 Quality control 27
6. Ways forward?
 Annex A Trading between Afghanistan and Pakistan
List of figures and boxes
Figure 1: Export of cement from Pakistan to Afghanistan in January-April 2004Figure 2: Recorded volume of cement exported from Pakistan to Afghanistan (Jan-Apr 2004)Figure 3: Recorded imports of cement 1998-2002Figure 4: “Lucky” cement - Jalalabad retail price breakdownFigure 5 Breakdown of retail price in Jalalabad of Lucky cementFigure 6: Cost breakdown for a unit (15ft x 15ins) of poplar smuggled from Peshawar toJalalabadFigure 7: Retail prices of construction materialsFigure 8: Provincial prices for construction materials in AfghanistanFigure 9: The route for imported construction materials from Russia to Afghanistanthrough Hayratan border crossing pointBox 1: Some construction contracts funded by the US Government in AfghanistanBox 2: The Pakistan-Afghanistan-Pakistan cement businessBox 3: A trader in Kabul wood marketBox 4 :An Afghan brick factoryBox 5: Construction materials in Mazar-e-SharifBox 6: Rent extraction in the transport sectorBox 7: Afghan traders in RussiaBox 8: A cement seller in KabulBox 9: Torkhum customs
AREU Afghanistan Research and Evaluation UnitCPI Consumer price indexCSO Central Statistics OfficeDoT Department of Transportation (provincial arm of MoT)FATA Federally Administered Tribal Areas, PakistanMoC Ministry of CommerceMoF Ministry of FinanceMoT Ministry of TransportNWFP North West Frontier Province, PakistanTISA Transitional Islamic Government of AfghanistanPhotographs by Zainiddin Karaev and Sarah Lister.

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