Following the announcement of the termination of the Taliban’s largest and first oil contract with Chinese company “Afchin,” political analysts are calling this decision more than just a matter of technical violations, but rather a reflection of domestic and regional instability.
Lack of a clear economic outlook, internal government pressures, and political uncertainties are cited as the main factors behind this cancellation.
Political analyst Sardar Mohammad Rahimi believes that Afghanistan and the Taliban lack a stable geopolitical outlook, which is why large international companies are unwilling to accept the risks of long-term investment.
The Taliban announced last Tuesday that the 25-year contract with Chinese company “Afchin” for oil extraction from the Amu Darya basin has been terminated due to repeated violations of the contract terms.
Coinciding with this decision, Abdul Salam Hanafi, the Taliban’s administrative deputy prime minister, met with the Chinese ambassador and then traveled to China to attend an economic exhibition. Some economic experts believe that if the Taliban can find more reputable companies as replacements, this cancellation could benefit Afghanistan, but if it leads to isolation, delays, and capital flight, the outcome will be negative.
