The Deputy Special Representative of the Secretary-General and Humanitarian Coordinator, Ramiz Alakbarov, said that there are several factors that have contributed to the nation's economic decline-- “one of that is dysfunctionality of the banking system."
Alakbarov said that there has been a 20 percent reduction in income in Afghanistan since August 2021.
“Since last August, we have seen a 20 percent reduction in income and output; 65 percent reduction in public spending and 50 percent decline in households,” he said.
The economists said that development aid is needed to solve the economic challenges in the country.
Meanwhile, the Ministry of Economy said that the sanctions and restrictions on the banking system as well as the freezing of Afghan assets has had a negative impact on the economic situation in the country.
“We expect that both the assets of the people of Afghanistan be freed and also the banking restrictions be lifted, thus the economic situation can get better for the people of Afghanistan,” said Abdul Latif Nazari, deputy Minister of Economy.
“Based on all rules and manners, these sanctions and pressures, which have been experienced as a factor in (economic) failure, should be avoided,” said Bilal Karimi, deputy spokesman for the Islamic Emirate.
Earlier, UNICEF said in a report that more than 24 million people are in need of humanitarian assistance in Afghanistan.