• publish: 24 November 2021
  • time: 5:51 pm
  • category: Economy
  • No: 19946

Status of Economic Situation Under the Islamic Emirate

The World Bank halted funding for all development projects in Afghanistan after the Taliban takeover.

Afghanistan faced a severe economic crisis following the collapse of the former government when the international aid to Afghanistan ceased and the banking system was disrupted.

After the Islamic Emirate rapidly took control of Afghanistan in mid-August, the United States administration blocked over $9 billion of Afghanistan’s central bank assets.

The collapse caused Afghanistan’s banks to face a shortage of cash, with thousands of costumers queuing at banks to take out their money.

At the time, a spokesman of the International Monetary Fund (IMF) said the organization had suspended Afghanistan’s access to fund resources.

A Spokesman of IMF further said IMF took the decision due to a lack of clarity over the country’s government after the Taliban seized control of Kabul.

The IMF also suspended a $370 million fund which was intended to respond to the COVID-19 outbreak in Afghanistan.

Although funding directly to the Islamic Emirate government has been stopped, early on after the fall of Kabul the United Nations held a meeting in which donors pledged more than $1 billion to assist Afghanistan, indicating the level of concern for the Afghan situation.

After the meeting the UN Secretary-General Antonio Guterres said: “Today, we have already heard clearly more than $1 billion in pledges…It represents a quantum leap in relation to the financial commitment of the international community towards the Afghan people.”

In addition, the World Bank halted funding for all development projects in Afghanistan after the Taliban takeover.

Meanwhile, the World Food Program (WFP) announced that more than 22.8 million of Afghanistan’s population will face acute hunger from November 2021.

During these 100 days, Afghan currency significantly lost value against the US dollar in Afghanistan’s markets, and the price of food and basic goods has spiked.

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