Your key to the Afghan private sector, Insight is a quarterly publication of the Executive Committee on Private Sector Development

(PriSEC)
updating on private sector reform updates, exclusive private sector data, and informative resource

The Executive Committee on Private Sector Development (PriSEC) was established in April of 2016 to remove impediments to doing business in
Afghanistan and make the country an investment friendly hub to start and grow a business. PriSEC is an inter-governmental/ministerial platform
chaired by H.E. the 1st Vice President of Islamic Republic of Afghanistan with representation from the private sector and international partners.
PriSEC consists of an Executive Committee, a Secretariat, Working Groups (WGs) and is technically supported by the Afghanistan Center for
Excellence (ACE) and the World Bank Group (WBG).

PRISEC UPDATES AND ACHIEVEMENTS:

. After operating under the Office of the CEO of
Afghanistan since 2017, on October 1, 2020,
IN THIS EDITION
PriSEC officially shifted to the Office of the First

.
Vice President (OFVP).
Following the shift, the PriSEC Secretariat was
established in OFVP under the Office of the Policy
PriSEC Updates and
Achievements - 01
and Strategic Affairs; and Working Groups (WGs)
began to meet on technical, practical and urgent
private sector issues starting November 7, 2020 Private Sector Pulse:
marking the start of a dynamic new round of Gap Analysis - 02
.
activity and reforms.
The most recent PriSEC Executive
Committee meeting was held on January 19th at Reforms to Come: PriSEC
Gul Hane Palace. The meeting was led by His
Excellency, Amrullah Saleh, First Vice President of
Planned Reforms 2021 - 03
the Islamic Republic of Afghanistan and attended
by the Administrative Office of the President (AOP);
the Ministry of Industry and Commerce (MoIC);
Private Sector News - 04
Ministry of Agriculture, Irrigation and Livestock
(MAIL); Ministry of Justice (MoJ); Ministry of Mines
and Petroleum (MoMP); Da Afghanistan Bank, Da
Resources: Dig Deeper into
Afghanistan Breshna Sherkat (DABS), National Afghanistan's Private
Statistics and Information Authority (NSIA), and Sector - 05
Afghanistan National Standards Authority (ANSA).
At the meeting, PriSEC activities and reform plan
were endorsed by all government offices, private
sector representatives, and international partners
in attendance. Furthermore, participants
expressed their commitment to work closely with
PriSEC to implement the private sector reforms set
for implementation in 2021.
PRIVATE SECTOR PULSE:
GAP ANALYSIS
Through PPDs and other mechanisms, PriSEC has a unique view
on the needs of the Afghan private sector. Below are a few key
areas where business owners in 2019 have identified gaps that
require public sector support:

.. Cold storage for Dry and Fresh Fruit Exporters

Dry and fresh fruit exporters in Kandahar participating in PriSEC
PPDs expressed that cold storage facilities are necessary to solve
the challenges that both farmers and businesses face when bor-
ders close or exports are disrupted. The lack of cold storage facili-
ties increased losses and increased costs for these businesses in

..
2020.
International Marketing Strategy for Afghan Carpets
The Afghanistan Chamber of Commerce and Industry (ACCI)
expressed the need for a specific strategy to promote the export
and international sale of Afghan carpets.
Feed Mill and Breeders for the Poultry Sector
Poultry sector representatives in Nangarhar province expressed
the need for more investment in feed mills and
breeders; they reported that the sector is suffering huge losses in

..
this area.
Women’s Markets
Businesswomen and female entrepreneurs across all
provinces where PriSEC conducted public private dialogues
expressed that they lack a market in which to sell their products.
 REFORMS IN ACTION
Since 2018, PriSEC has been instrumental in implementing over 61 key reform
actions on private sector reforms in Afghanistan. Reforms have been sourced
from key national private sector documents like the PSD NPP; international
insights on Afghanistan, such as the World Bank Doing Business Indicators
(DBIs); and regional best practice.

In 2021, PriSEC has set its sights on a set of 42 ambitious-but-achievable

reforms across its five working groups.

The 42 final reforms were selected from a longlist of 179 different reforms
(short-term and medium-term) the PriSEC team prepared in November, 2020
using national private sector documents (i.e. PSD-NPP, DBRM, NES, NTP,
NFIS…etc.), and real time consultations with private sector representatives (i.e.
Business Chambers, unions and H.E. FVP’s meeting with traders and
chambers).

..
Key reforms to be implemented include:
Establishing a One Stop Shop for recovering banks' defaulted loans

..
Initiating the establishment of modern cold storage in provinces that border
neighboring countries

.
Improving and fully implementing the E-tax payment system
Drafting the National Industry Development Strategy
Endorsing the anti-subsidy and anti-dumping laws in order to protect domestic
industries

Working Groups are now developing detailed breakdowns and action plans to
ensure these and other critical reforms are passed and implemented in 2021.
Stay tuned for more information on PriSEC 2021 reforms in subsequent
newsletters!
PRIVATE SECTOR NEWS

How Afghanistan's Nat'l Power Utility Supports Women at Work

The WB Blog highlights an internship program launched by Afghanistan’s national power

utility (DABS) in 2018 to provide opportunities for graduates, especially women. Since
2018, DABS has hired 141 paid women interns and 146 full-time female employees.

Tajikistan: Building Blocks for Dynamic Post-COVID-19 Recovery

Modern Diplomacy's examination of Tajikistan's opportunity to "build back better" reveals

regional best practices. The article highlights the importance of tax reforms, providing the
foundations for digital economic transformation, and developing a modern supply chain.

Ariana Afghan Airlines Reports $3.4M Profit in 2020

The Ariana Afghan Airlines reported nearly $3.4 million profit in last year despite COVID-19
crisis, officials of the government-owned company said. The company faced $350,000 loss
last year, officials said.
Read more: www.prisec.gov.af/news
RESOURCES: DIG DEEPER INTO
AFGHANISTAN’S PRIVATE SECTOR
Afghanistan's Draft National Financial Inclusion Strategy
The current strategy is a dynamic document that aims to unlock the opportunities towards
establishing an inclusive financial system and will be continuously updated to reflect and
include the country’s emerging priorities.

Doing Business 2020: Economy Profile, Afghanistan

The World Bank Group’s “Doing Business” project provides objective measures of
business regulations and their enforcement. Their Afghanistan profile provides granular
insight into progress--and areas for improvement.