Afghanistan economy on the verge of collapse as foreign countries seize all kinds of financial assistance. The countries economy was already weak but the advent of Taliban has made situations even worse.
US government blocked $9.5 billion worth of monetary reserves belonging to Da Afghanistan Bank. Reason being that the Taliban could have used that money for financing terrorist activities.
Amid the worsening economic conditions in the country, United Nations pledges to release $1.2 billion aid to Afghanistan for food and health care. Stephane Dujarric, the spokesperson for UN chief said that the UN and its partners will continue to deliver aids to millions of people in need in Afghanistan.
In the past, Afghanistan has received major financial assistance from countries like USA and Canada. These aids were channelized towards holistic development of the nation. Since Taliban seized control of Kabul on August 15, foreign aids have completely stopped. This is a matter of paramount concern for the new regime since Afghanistan depends on such aids.
Afghanistan’s economy since Taliban took over:
The already weak economy of the country worsened following the events that took place in August. Cost of essential commodities like flour, rice and oil have risen exponentially. Banks have limited cash at their disposal which means that people have limited withdrawals. Since households don’t have much money to spend, cash flow in the economy reduces.
Besides all this, seized foreign aids further deteriorated the economic conditions. Afghanistan’s economy might collapse if the situation remains the same.
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