Afghanistan has been disclosed as the recipient of significant financial aid, with an average of $80 million arriving every 10 to 14 days over the past three months, according to the Special Inspector General for Afghanistan Reconstruction (SIGAR). This revelation comes amidst a shrinking Afghan economy, marked by a 27 percent contraction since 2020, as reported by TOLOnews.
The funds are conveyed in various shipments and stored in private banks under United Nations’ accounts, with the aim of benefiting the Afghan people, as emphasised by SIGAR’s report. The economic downturn is underscored by the United Nations Development Programme (UNDP), which reports that 69 percent of Afghans lack access to sufficient resources for basic necessities.
Seven out of ten Afghans are struggling to meet essential needs, including food, healthcare, and employment. The humanitarian situation has significantly worsened since the Taliban’s resurgence in August 2021, compounded by the Ukraine crisis, leading to a surge in food prices and making crucial items unaffordable for the average citizen.
In response to the aid influx, the Taliban asserts that funds delivered through the UN are allocated to crucial sectors such as education, health, and development projects. Zabihullah Mujahid, the Taliban’s spokesperson, clarified that the aid given by countries is implemented through international institutions in Kabul, emphasising that the Islamic Emirate does not benefit from this money.
Despite claims of constructive utilisation, some economic analysts argue that international financial support could play a pivotal role in stabilising Afghanistan’s fiscal situation and fostering economic growth. However, Afghanistan continues to grapple with persistent human rights violations, particularly against women and minorities, creating a complex socio-political scenario in the post-government collapse landscape.
Pan Finance is a print journal and news website providing worldwide intelligence on finance, economics and global commerce. Known for our in-depth analysis and opinion pieces from esteemed academics and celebrated professionals; our readership consists of senior decision makers from across the globe.