Afghanistan on the verge of economic collapse, the cash crisis increased the troubles of the Taliban government

Posted on 17th Sep 2021 by rohit kumar

After capturing Afghanistan, the Taliban have a bigger challenge than winning the war and running the government there. With great turmoil, the economic crisis in Afghanistan, people are now moving towards unemployment and poverty. The common people of the country are forced to sell valuables of their house to have two meals a day. According to multiple reports, Afghanistan's already weak economy has declined since the Taliban's capture of Kabul last month.

 

The New York Post reported that foreign aid was immediately halted shortly after the Taliban's siege of Kabul on August 15. In addition, the US withheld USD 9.4 billion reserves in the country's central bank. In addition, the International Monetary Fund and the World Bank have also halted loans and the Financial Action Task Force has warned its 39 member states to freeze Taliban assets.

 

Millions of people have been seen waiting in long lines to withdraw their savings from banks since the Taliban takeover in August. The announcement by the US to freeze Afghanistan's bank assets and freeze funds by international agencies has raised concerns among Afghans. Afghan people who were previously doing government jobs or working in the private sector have been rendered jobless overnight. According to a report in Tolo News, Afghans have now turned the streets of Kabul into weekly markets where they are selling their household items at cheap prices to provide food for their families.

 

According to other experts, an informal economy may be the only way for Afghans, including the new government, to survive. According to The Post, the Taliban themselves mainly relied on hawala money to survive during their years of insurgency. Amid the deteriorating economic situation in the country, the United Nations has pledged more than USD 1 billion in aid for Afghanistan, warning that most of the population could soon fall below the poverty line. Muhammad Suleiman bin Shah, deputy minister of commerce and industry in the previous Afghan government, said the country's economy was fragile before the occupation.

 

A month after the capture of Kabul, the Taliban are now facing difficult problems. They now have the challenge of providing employment to the people of Afghanistan and establishing an efficient administration.

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