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Afghanistan

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Editorial

Legal market overview

The World Bank predicted that economic growth in Afghanistan could reach 3% if the conflict subsided, but although a temporary ceasefire with the Taliban has been reached, there are few signs of genuine and sustainable growth. Inflation is expected to remain at 5%, and growth forecasts were revised downwards to around 2.2%. Slow growth may be in part due to a wet season, which diminished agricultural production. Corruption remains endemic, and bribery demands at border crossings hamper the development of a market economy.

Despite this, law firms remain optimistic about the future development of Afghanistan. Having slumped in 2014 after the withdrawal of 100,000 US troops, whose presence had artificially inflated the economy, the banking sector still remains fragile, yet financial institutions have provided competitive work for local firms. Energy and natural resources remains a valuable area, and with widespread stability this sector has seen an increase in work. Land laws have been developed in relation to pipeline development, with work on the local sections of the Turkmenistan-Afghanistan-Pakistan-India pipeline beginning in February 2018.

Although Kakar Advocates LLC continues its strategic alliance with DLA Piper, other international firms have largely withdrawn from the market.

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