Activities continue in the industrial area east of Kabul, where a factory producing women's clothing has recently been relocated from Karachi, Pakistan. This factory represents a new opportunity for several Afghans returning to their homeland after years of exile, reflecting a gradual shift in investment towards the Afghan interior.
Abdul Hakim Salahi, the technical supervisor at the factory, states, "We are not just relocating a factory; we are trying to transfer a complete experience from abroad to the interior. If this experience succeeds, it will encourage traders to return and invest their money in Afghanistan."
Event Details
The factory is based on over 35 years of experience, having operated in Karachi before its owner decided to move operations to Kabul. The factory employs between 80 and 100 people, most of whom are returnees, in areas such as machinery operation and sewing, reflecting a long accumulation of expertise in this sector.
Afghanistan has witnessed an unprecedented wave of returnees for over a year, with United Nations data showing that more than 5.4 million Afghans have returned to their homeland since October 2023. Most of these returnees came from Pakistan and Iran, increasing pressure on the local job market, which suffers from limited opportunities.
Background & Context
The number of returnees is increasing, with approximately 270,000 Afghans returning since the beginning of the year, including 160,000 from Pakistan and 110,000 from Iran. However, these returnees face significant challenges, as many arrive without savings or housing, making them urgently in need of stable economic opportunities.
Shoaib Ali, one of the returning workers, expresses his concern about the lack of job opportunities, considering the new factory a real chance to rebuild his life. He says, "Working here gives me a sense of stability and belonging to my homeland."
Impact & Consequences
The factory aims to enhance local production in Afghanistan, which heavily relies on imports for women's clothing. Ghauthuddin Safi, one of the factory officials, emphasizes that local production will create job opportunities and contribute to reducing reliance on imports.
However, the factory faces several challenges, the most significant being securing raw materials, some of which are imported from countries like India and Iran. Transportation-related restrictions hinder the regular arrival of these materials, leading to increased production costs.
Regional Significance
This experience represents an opportunity for the Afghan economy, as it could help improve the economic conditions for returnees. It also reflects the importance of supporting small and medium enterprises in enhancing economic stability in the region.
In conclusion, the new factory represents a positive step towards boosting local production, but its success depends on addressing current challenges and providing a sustainable working environment for returnees.