Led by the Taliban, Afghan Golden Cotton Company signed a $25 million contract with a Chinese company Shanghai Khuban Textile Company for the export of cotton thread. The contract entails exporting 10,000 tons of cotton thread to China. The contract was signed in Kabul during the celebration of National Export Day.
The Taliban's Ministry of Commerce highlighted this deal as a significant step towards boosting Afghanistan's export sector. Taliban officials have consistently urged local investors to channel their investments into Afghanistan to stimulate economic growth. However, the private sector faces numerous obstacles that hinder such investments. These challenges include banking restrictions, high tariffs, steep taxes, political instability, security concerns and infrastructure challenges.
In related developments, the Taliban recently appointed Noor Ahmad Agha, a sanctioned Taliban member, as the governor of Afghanistan’s Central Bank. This appointment has raised concerns among international observers about the governance and financial stability of the country. Despite these challenges, the Taliban continues to push for economic self-sufficiency and growth through initiatives like the recent cotton thread export contract.
