Afghanistan was ranked 167 in the World Bank’s Doing Business Report 2019: Training for Reform and received a score of 47.7 in ease of doing business.
According to the report, Afghanistan has risen six points in this year’s index of doing business against last year.
However, investors said facilities for easy loans have not been provided in the country so far.
Factory owners and investors said over 90 percent of investors need loans at the moment but getting credit is not easy.
“The interest charged on loans is very high in Afghanistan therefore investors cannot use the loans properly,” said Abdullah Faizi, an investor.
“The private banks should have the ability to give loans for millions of dollars and then banks can give loans of $500,000 or more than that,” said Abdul Qadir Jailani, an analyst in economic affairs.
Meanwhile, President Ashraf Ghani’s advisor in financial and banking affairs Ajmal Ahmadi said government has drawn up the required laws for solving the problems of small companies and that this will address many problems in this regard once implemented.
“A law has been approved for companies which supports small business owners and we have approved a new law instead of the 1944 law which has created a modern system for companies which are heading for bankruptcy,” Ahmadi said.
This comes after the Banking Union said recently that government lacks a clear policy on providing loans for investors which has created many problems for investors and banks.
The ease of doing business score captures the gap of each economy from the best regulatory performance observed on each of the indicators across all economies in the Doing Business sample since 2005.
An economy’s ease of doing business score is reflected on a scale from 0 to 100, where 0 represents the lowest and 100 represents the best performance. The ease of doing business ranking ranges from 1 to 190.