Four cable and wire producing factories have ceased operating in the country in the last three months, officials said on Sunday.
According to officials from the Afghanistan Chamber of Industry and Mines (ACIM), the factories have stopped operations due to a spike in the prices of raw materials, the decrease of demand in the market, and other general financial problems.
The officials said the factories still active also face serious financial challenges.
“Four factories have closed down because of the high price of raw materials. Also, banks are not working properly and the people (business people) cannot withdraw their money,” said Yar Mohammad, an official from ACIM.
Although ACIM says that Afghanistan is not far from becoming self-sufficient in producing wire and cable, factory owners said that cable and wire is also imported from Iran and Pakistan, which has a negative impact on domestic producers.
An official of one the closed factories said they used to produce two tons of wire and cable on a daily basis, but now they have stopped operating and their workers are jobless.
“The factory is closed, our production has stopped. Our factory is in a bad situation,” said Farid Ahmad, a factory official.
“We used to produce wire and cable in different sizes,” said Rahman, a factory worker.
According to ACIM, most of the wire and cable producing factories are located in Kabul, Herat, Balkh, Nangarhar and Paktia provinces and these factories import raw material from China.
Afghanistan needs around 100 tons of cable and wire per day and domestic factories are capable of meeting this demand if they continue to operate normally and do not close down due to economic problems, according to ACIM.