Head of Department “Asia, Africa, America and Australia”
Adelina Kioseva
12 Knyaz Alexander I St.
Tel.: +359 2 940 7688
Fax: +359 2 987 4008
a.kioseva@mi.government.bg
Afghanistan Desk Officer
Miroslav Burnev
Senior Expert
Directorate “Foreign Economic Policy and International Cooperation”
Ministry of Economy and Industry
Mobile: +359 885 69 55 77
Tel.: +359 2 940 7660
TRADE AND ECONOMIC RELATIONS
REPUBLIC OF BULGARIA – ISLAMIC REPUBLIC OF AFGHANISTAN
TRADE TURNOVER
Due to the ongoing military conflict in Afghanistan and the current situation in the country, the main form of trade and economic relations between the two countries is trade in goods.
(USD million)
| Year | Exports | Imports | Trade Turnover | Balance |
|---|---|---|---|---|
| 2013 | 4.9 | 0.0 | 4.9 | 4.9 |
| 2014 | 2.7 | 0.0 | 2.7 | 2.7 |
| 2015 | 2.0 | 0.2 | 2.2 | 1.8 |
| 2016 | 1.3 | 0.0 | 1.3 | 1.3 |
| 2017 | 1.0 | 0.0 | 1.0 | 1.0 |
| 2018 | 4.0 | 0.0 | 4.0 | 4.0 |
| 2019 | 4.2 | 0.1 | 4.1 | 4.1 |
| 2020 | 19.0 | 0.0 | 19.0 | 19.0 |
| 2021 | 2.4 | 0.0 | 2.4 | 2.4 |
| *2022 | 4.5 | 0.0 | 4.5 | 4.5 |
* In 2022, Bulgarian exports increased by 87.5% compared to 2021, reaching USD 4.5 million, while imports from Afghanistan amounted to USD 0.0.
Leading Export Commodities in 2022
| Bulgarian Exports | % of Total Exports |
|---|---|
| Sunflower seeds | 52.2 |
| Human and animal blood prepared for therapeutic, prophylactic and diagnostic purposes and antisera | 19.9 |
| Tractors | 9.3 |
| Mixtures of odoriferous substances used as raw materials in industry | 7.2 |
| Seeds, fruits and spores for sowing | 5.1 |
| Machinery and equipment for working rubber and plastics | 2.1 |
Leading Export Commodities in 2021
| Bulgarian Exports | % |
|---|---|
| Sunflower seeds | 54.3 |
| Human and animal blood prepared for therapeutic, prophylactic and diagnostic purposes and antisera | 28.1 |
| Tractors | 7.6 |
| Seeds, fruits and spores for sowing | 2.9 |
| Mineral and chemical fertilizers | 1.3 |
| Motor vehicles for the transport of goods | 1.1 |
Leading Export Commodities in 2020
| Bulgarian Exports | % |
|---|---|
| Aircraft (e.g. helicopters, airplanes) | 87.0 |
| Sunflower seeds | 7.5 |
| Human and animal blood prepared for therapeutic purposes | 2.1 |
Leading Trade Commodities in 2019
| Exports from Bulgaria | % | Imports from Afghanistan | % |
|---|---|---|---|
| Sunflower seeds | 54.5 | Passenger cars | 84.4 |
| Seeds for sowing | 8.9 | Turbojet and turboprop engines | 10.3 |
| Human and animal blood for diagnostic purposes | 5.2 | Furniture and parts thereof | 2.0 |
| Hydraulic turbines | 4.1 | Articles of copper | 0.6 |
| Footwear with outer soles of rubber | 2.9 | Fittings | 0.4 |
| Knives | 2.7 | — | — |
2019 recorded a slight increase in Bulgarian exports by 5.0% compared to 2018, reaching USD 4.2 million, while imports from Afghanistan amounted to USD 100 thousand.
Over the past ten years, trade turnover has been generated mainly by Bulgarian exports to Afghanistan, resulting in a positive trade balance for Bulgaria.
The quantitative value of imports is insignificant. No permanently present or dynamically developing commodity groups can be identified in imports from Afghanistan.
BILATERAL TRADE AND ECONOMIC RELATIONS
Trade and economic relations with Afghanistan date back to 1961.
With Bulgarian technical assistance, a number of facilities were built or left unfinished due to the civil war, including poultry farms, cold storage facilities, a dairy farm, a compound feed plant and a ceramics factory.
The main Bulgarian companies operating in Afghanistan were Agrokomplekt (three complete facilities built), Technoimportexport – a brick factory in Dehsabz (the largest industrial facility built with Bulgarian assistance in Afghanistan), Elektroimpex, Autoimpex and others.
In 1998–1999, Elektroimpex supplied equipment for an electrical substation in Kandahar, in addition to its previous deliveries from the 1980s.
In 2001–2002, exports to Afghanistan were dominated by tobacco products and processed tobacco (USD 2.102 million), as well as transport vehicles (trailers and semi-trailers). The main exporters were Blagoevgrad-BT AD, Slantse Stara Zagora–BT AD and SOMAT.
On 20 May 2004, a Donation Agreement was signed for the provision by the Bulgarian National Electricity Company (NEK) to the National Electricity Company of Afghanistan of cables and conductors worth BGN 232,822.
MAIN REASONS FOR THE LOW LEVEL OF BILATERAL ECONOMIC RELATIONS
(as of August 2021)
-
Geographic remoteness of Afghanistan and difficulties in transporting goods;
-
Very low purchasing power of the local population, leading Afghan businessmen to prefer cheap, low-quality imports from neighboring countries such as Pakistan, India and China;
-
Artificial administrative barriers and problems in the collection of customs duties and fees, aimed at personal financial gain by officials;
-
Lack of guaranteed physical security for businessmen – according to international security companies, over 630 Afghan and foreign businessmen were kidnapped or killed between 2002 and 2010;
-
Complicated tax and customs procedures – exports require signatures from 14 officials from 8 different state institutions; imports require signatures from 16 officials from 16 institutions;
-
High levels of bureaucracy and corruption in public administration, including clan-based appointments and lack of merit-based recruitment.