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25.11.2021 Status of Economic Situation Under the Islamic Emirate
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Afghanistan faced a severe economic crisis following the collapse of the
former government when the international aid to Afghanistan ceased and the
banking system was disrupted.

After the Islamic Emirate rapidly took control of Afghanistan in
mid-August, the United States administration blocked over $9 billion of
Afghanistan’s central bank assets.

The collapse caused Afghanistan’s banks to face a shortage of cash, with
thousands of costumers queuing at banks to take out their money.

At the time, a spokesman of the International Monetary Fund (IMF) said the
organization had suspended Afghanistan’s access to fund resources.

A Spokesman of IMF further said IMF took the decision due to a lack of
clarity over the country's government after the Taliban seized control of
Kabul.

The IMF also suspended a $370 million fund which was intended to respond
to the COVID-19 outbreak in Afghanistan.

Although funding directly to the Islamic Emirate government has been
stopped, early on after the fall of Kabul the United Nations held a
meeting in which donors pledged more than $1 billion to assist
Afghanistan, indicating the level of concern for the Afghan situation.

After the meeting the UN Secretary-General Antonio Guterres said: “Today,
we have already heard clearly more than $1 billion in pledges…It
represents a quantum leap in relation to the financial commitment of the
international community towards the Afghan people.”

In addition, the World Bank halted funding for all development projects in
Afghanistan after the Taliban takeover.

Meanwhile, the World Food Program (WFP) announced that more than 22.8
million of Afghanistan’s population will face acute hunger from November
2021.

During these 100 days, Afghan currency significantly lost value against
the US dollar in Afghanistan’s markets, and the price of food and basic
goods has spiked.


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