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Foreword AFGHANISTAN'S progress in the field of national economy is following almost the same lines as her development in other spheres. After the opening of relations with the outside world, Afghan goods and commodities began to be introduced little by little into the markets of neighbouring countries; while the products of these countries, as well as those of European countries, began to flow into Afghanistan. These exchanges continued until the beginning of World War I. The end of the war and the subsequent change in Afghanistan's world status also brought about a change in her trade relationships. From then on determined steps were taken to establish direct trade relations with various countries, thereby laying the foundations of economic independence. The outbreak of civil strife in 1929 was a serious setback but in 1932, during the reign of King Mohammed Nadir Shah, the Government resolved on a new policy which they carried out assiduously. Since then trade and agriculture in Afghanistan have developed enormously, and trade relations have been established not only with neighbouring countries but also with countries in Europe, the Far East and elsewhere. At the same time use has been made of the natural resources at the country's disposal. Dams and canals have been constructed for the furtherance of agricultural expansion, and foreign agricultural machines imported to assist progress in farming. Industry too has been attentively fostered. Main highways were built, joining various towns and cities together, and making possible a quicker and easier flow of goods. At first the new Ministry of National Economy concerned itself with most of these activities and with co-ordinating the Government's efforts therein. Later, with the expansion of the Government's economic policy, most of these functions became the responsibility of a different organisation which brought about the creation of the Ministries of Trade, Agriculture, Mines and Industries. The Afghan National Bank and the Central Bank (Da Afghanistan Bank) also came into being at that time. Various trading companies were established and paper money came into existence, while trade deals and currency affairs were organised on modern lines. The banks opened branch offices in the provinces and in some foreign countries to facilitate commercial exchanges. A further result was the establishment of some new industries and the expansion of existing ones. Textile factories, woollen factories, hydro-electric power stations, a sugar refinery, the Lapidary and Joinery Co. and a fruit conserving company were established. The Second World War put a further obstacle in the way of the development of these and other progressive steps taken by the Government. As soon as it was over, however, the Government renewed its efforts and the capital of some companies and banks were partially directed into industry. As a result some big industrial organisations, such as the Gulbahar Textile Factory, the Sarobi Hydro-Electric Power Station, the Jabalussaraj Cement Factory and a Porcelain Factory came into being. It can now be anticipated that Afghanistan is well on her way to a bright future. 5