Herat trade on the up and
up By Mohammad Ali Jawed and
Harun Hakimi
Exports from the western
Afghan province of Herat have jumped by more than
a third year on year as a result of a relaxation
of customs rules, better international trade links
and improved security, businessmen said.
Herat lies on ancient trade routes linking
the Middle East with Central and South Asia, and
borders on Turkmenistan as well as being
Afghanistan's major gateway to Iran.
The
province produces saffron, rugs, cumin, marble,
animal skins and wool, and should be prospering.
But as in much of Afghanistan, businessmen
frequently complain that free trade is hampered by
continued conflict, endemic corruption, poor
government policies, and a lack of markets abroad.
That situation is now improving, according
to businessmen and
officials, who credit a
reduction in red tape and a supportive provincial
chamber of commerce.
Officially recorded
exports from Herat province amounted to more than
US$30 million between March and September 2011, a
36% increase on the figure reported for the same
period of 2010, according to Amrullah Qalandarzoi,
head of exports at the provincial customs
department.
Some of the goods were bound
for neighboring Iran and Turkmenistan, while
others were heading for the Middle East, India,
Turkey and Europe.
Mohammad Rasul Fayeq,
head of the rug makers' association in Herat, said
the carpet industry, which employs some 3,000
workers, most of them female, in western
Afghanistan, had benefited significantly. Nearly
60% more rugs were exported to Iran and on to
Europe between March and September 2011 than in
the same period of 2010.
The boom has
prompted Herat's biggest carpet trader, Abdol
Zaher, to raise the wages he pays his workers to
$300 a month from $60.
"I export about
30,000 square meters of carpets to Italy every
year," he said. "A lot of people put food on the
table because of this industry."
One of
his employees is Nuria, 36, who became the
breadwinner in her family when she lost her
husband six years ago. Before the pay rise, she
could barely pay the rent and her two sons had to
work to support the family, one in a bakery and
the other selling plastic bags. With the pay
increase, Nuria hopes to send both sons to school.
Gholam Sediq Nuri, who sells rugs, cumin
and saffron to the Middle East via Iran, said the
chamber of commerce in Herat had been a great
help. In the past, he had difficulty getting visas
for Iran and other countries, often having to make
a large down-payment.
"When the chamber of
commerce introduced me to the embassies, however,
I was able to get visas very easily," he said.
"Our trade has grown because Arab and European
countries have opened their doors to Afghan
traders, because we are producing more, and
because - relatively speaking - security is fine."
Khalil Ahmad Yarmand, the chamber's
executive manager, said it had helped exporters to
market their goods and held trade fairs to attract
foreign buyers.
"If things continue like
this, Herat's exports and people's incomes will
increase massively," Yarmand said.
Although the security situation remains
volatile in Herat, officials estimate than one
third of the insurgents in the province have been
"reintegrated" to civilian life over the past
year, according to The Wall Street Journal.
Economic analyst Mohammad Jawad Panahi
predicted that a continued rise in production and
employment would in turn improve the security
environment and cut drug smuggling. Panahi
attributed these improvements to greater
efficiency at the customs office, and said the
finance ministry has also negotiated with
Afghanistan's neighbors to allow freer border
trade.
Mohammad Qasem, a farmer from
Gozara district, 20 kilometers south of Herat
city, has expanded his business as export
opportunities have increased.
He grew
cumin for many years, but earned little from it
because he could only sell to Iranian and
Pakistani buyers at low prices. Now he can trade
with countries further afield, he has bought two
tractors with the profits and gone into business
with his two brothers, who have returned from Iran
where they were working.
"In the past, we
grew tired of working because no one would buy our
products and we couldn't cover our costs," he
said. "Our fields are worth working now."
Despite the improvements, no one is under
any illusion about the many obstacles to trade
that still exist.
Fayeq pointed out that
while increasing amounts of carpets are exported
to Iran through legitimate routes, 95% are still
smuggled illegally into Pakistan.
Gholam
Mohammad, a saffron trader in Gozara, said that
although trade conditions were better than ever
before, security and "massive corruption" remained
major problems.
Officials continued to
demand a percentage from legitimate businesses, he
said, adding, "If you want to launch an
import-export company, you need to bear in mind
that you aren't the only shareholder. Government
officials are your shareholders as well."
Mohammad Ali Jawed and Harun
Hakimi are IWPR-trained reporters in Herat
province.
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