Seeking fresh investments across different sectors, Afghanistan Industry and Commerce Minister Alhaj Nooruddin Azizi on Monday said that his government is willing to offer five years of tax breaks to companies that invest in new areas, including gold mining, as part of efforts to boost economic growth in the country.

Speaking at an interactive session organised by the business chamber Assocham, Azizi said that ongoing tensions with Pakistan are creating hurdles in trade and affecting business activity.

"There is a huge potential available in Afghanistan. Even you will not find a lot of competitors. You will also receive tariff support, and we will be able to give you land. The five-year tax exemption will be given to companies that may be interested in investing in new sectors," the minister said, stressing that Afghanistan wants to create a welcoming environment for investors.

He added that Afghanistan will charge only a 1 per cent tariff if Indian firms import machinery for investment, making it easier for companies to set up operations.

"Gold mining will definitely require the technical and professional team or professional companies. So initially, we are requesting that you send your team, they can do the research, they can do the exploration initially, and then they can start work.

"However, the condition is that we will expect it to be processed in the country so jobs can be created," the minister said, explaining that Afghanistan wants economic benefits to reach local communities.

The visiting minister also urged the Indian side to address "minor" issues that are slowing down bilateral trade.

"We want to build a relationship between India and Afghanistan. There are some minor hurdles which really affect the overall process, like visa, air corridor, banking transactions. So, these have to be sorted to improve bilateral trade and investment," he said in the presence of Indian government officials. The Afghanistan minister is on a six-day visit to India.