Afghanistan: The Taliban is set to turn a former military base into a special economic zone.

Afghanistan’s Taliban government has said it will turn some former foreign military bases into economic zones and businesses.

Afghanistan is facing its worst economic and humanitarian crisis since the Taliban took control of the country in August 2021.

Foreign military forces have been in the country for two decades.

Acting Deputy Prime Minister for Economic Affairs Mullah Abdul Ghani Baradar announced the decision.

“It has been decided that the Ministry of Industry and Commerce will take control of the remaining military camps of foreign forces in a phased manner with a view to converting them into Special Economic Zones,” Mullah Baradar said in a statement on Sunday.

He added that the project would start in the capital city of Kabul and areas in the northern Balkh province, but did not give further details.

Mohammad Faisal bin Abdul Rahman of the S Rajaratnam School of International Studies in Singapore told the BBC: “The Taliban want to increase their coffers if they want to manage better and gain some domestic legitimacy.”

“Above all, the Taliban must ensure commitment to economic planning. This includes establishing safe zones near the capital and bordering foreign investors such as the Chinese, and reviving regional trade with neighboring countries,” he said.

Afghanistan is estimated to be sitting on over $1 trillion (£831.5bn) worth of natural resources, including natural gas, copper and rare earths.

However, due to decades of chaos in the country, most of the reserves remain untapped.

The conflict has killed tens of thousands of people and displaced millions.

After the withdrawal of foreign military forces, Afghanistan’s finances were hit by several major issues. Sanctions were imposed on members of the government, the central bank’s overseas assets were frozen, and most foreign aid – which had previously supported its economy – was cut off.

The 25-year deal will highlight China’s economic involvement in the region.

Beijing does not officially recognize the Taliban regime in Afghanistan, but it has significant interests in the country, which lies at the heart of a region important to China’s Belt and Road Initiative.

In the year Launched by Xi Jinping in 2013, the initiative provides funding to developing countries to build infrastructure such as ports, roads and bridges.