Afghan FM: $10 billion economic boost seen

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http://www.businessweek.com/ap/financialnews/D9JQH7U01.htm

DUBAI, United Arab Emirates

Afghanistan's foreign minister is predicting a $10 billion in government spending and outside investment in the coming years in the war-ravaged country.

Zalmai Rassoul made the comments on Tuesday, at the end of the one-day conference in Dubai on investments in Afghanistan.

The meetings brought together representatives from more than 500 companies to look at possible projects such as farming, railways and mining.

No major deals were announced and officials acknowledged that large-scale foreign investment will remain elusive until Taliban militants and others are brought under control.

 

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India calls for Afghanistan's closer integration with South and Central Asia

India on Tuesday advocated Afghanistan's closer integration with South Asia within the framework of the South Asian Association for Regional Cooperation (SAARC).

During her address at the Afghanistan International Investment Conference (AIIC), co-hosted in Dubai by the United Arab Emirates (UAE) and Afghanistan, Minister of State for External Affairs Preneet Kaur said: "The weight of history suggests that the economic future of Afghanistan is inextricably tied to that of the South Asian and Central Asian regions. Afghanistan has always been a land bridge between the Indian sub-continent, the Central Asian countries and Iran."

She added that Afghanistan's development must be based on a strategy that "must inevitably be focused on South and Central Asia". The visiting minister stressed that SAARC can emerge as a key vehicle to steer Afghanistan's rapid development. "Afghanistan, like the other countries of the region, will benefit substantially from the ongoing efforts under the SAARC banner, to improve connectivity and to augment trade flows within South Asia." Ms. Kaur pointed out that because of Afghanistan's historical ties and familiarity with South and Central Asia, it would find it easier to absorb home-grown technologies that have been developed in the region.

In a veiled reference to Pakistan, the minister urged "external powers to abjure the temptation to foster and sponsor disruptive forces within Afghanistan". She emphasised that India "would continue to partner the people of Afghanistan in developing capacity and infrastructure in their country," notwithstanding the heavy human cost New Delhi has already paid in this endeavour.