Kabul: The economic condition of Afghanistan is worsening day by day ever since the Taliban have taken over governance and power. On Sunday, the Taliban fighters took the capital city of Kabul in a stunning end to Afghanistan’s 20-year war. Afghanistan was already a poor country and now it faces a downward spiraling economy. Even though the Taliban captured Afghanistan, yet it failed to enjoy support from the world community leading to most nations withdrawing financial aid and stopping development projects in Afghanistan.
In a press conference, the Taliban have promised to improve Afghanistan‘s economy, but to do that, the new Taliban leadership will have to rely largely on foreign aid, which is difficult to come as some global donors have stopped their support.
IMF withdraws support: In a significant development, the IMF on Wednesday said it had decided to withhold its assistance to Afghanistan amid uncertainty over the status of the leadership in Kabul. The Afghan economy was already affected due to Covid pandemic, and now with the Taliban takeover the currency fell drastically.
On the other hand, President Joe Biden’s administration said the Taliban will not have access to them. And Western Union announced it was temporarily cutting off wire transfers to the country — another vital source of cash for the people. Apart from these, some of the major global donors have also halted their support for the country.
No support from world leaders: Canadian Prime Minister Justin Trudeau has also said that his country has “no plans” to recognize the Taliban. Germany announced the suspension of its development aid on Monday. Berlin was going to provide 430 million euros ($503.1 million) in aid this year, including 250 million euros ($292.5 million) for development.
Currency dips further: In a latest development, Afghanistan’s currency has gone down after the Taliban blitz and prompted its central bank governor to flee. As per reports, the currency sank to 86 Afghani per US dollar on Tuesday marking a six percent decline from last Friday, when it had stood at 80 Afghani per dollar.
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