Home / Latest Updates / Afghan economy could shrink 30% in winter, warns IMF

Afghan economy could shrink 30% in winter, warns IMF

AT News

KABUL: Afghanistan’s economy could shrink by 30 per cent or more in the coming months amid an economic and humanitarian crisis in the war-hit country, warned International Monetary Fund.

Asia Times said in a report that Afghanistan’s financial condition is continuously moving towards a total economic collapse. Quoting IMF, the report said Afghanistan is teetering towards a catastrophic famine situation. The economic instability could be traced from the time when the western forces decided to pull-out troops from the country.

Most of the international forums including the IMF, World Bank, EU, US stopped their aid and assistance to Afghanistan with the onset of the Taliban’s regime in Kabul.

The move came as the international community did not want their funds to fall into the hands of a regime that has thus far “taken few if any practical steps to eliminate transnational jihadi networks in its midst”, the report said.

Besides the aid refusals, the US also froze Afghanistan’s worth $9.5 billion held in US banks and financial institutions.

Though several international communities and countries have extended a hand of help Afghanistan, the severity of the economic collapse triggered by the Taliban‘s takeover is unlikely to pass, Asia Times reported.

In October, the United Nations had also said that Afghanistan’s economy is imploding, with all but three per cent of households expected to fall below the poverty line in coming months.

Prior to that, UN chief Antonio Guterres had also urged the world to take action during a “make or break” moment for the country.

About Sediq Jan

Check Also

Hotak returns to Kabul after beating Azerbaijani rival

AT Kabul: Afghan Mixed Martial Art fighter Ahmad Wali Hotak on Tuesday returned to the …