The UK parliament released a report under the title: “Afghanistan: One year under a Taliban government” in which it highlighted the Afghan economic and humanitarian situation alongside human rights and political development.
The report said that a combination of sanctions, frozen assets abroad, access to foreign remittances and economic and humanitarian challenges has caused a cash, or liquidity, crisis in Afghanistan.
Meanwhile, the Islamic Emirate said that efforts are underway to lift sanctions on Afghanistan and release the Afghan assets.
According to the report, the UK provided £140 million to Afghanistan from April to July 2022.
“£50 million to the Afghanistan humanitarian fund. £70 million to the World Food Program, to support 4 million people with food assistance. £12 million to the UN Children’s Fund (UNICEF),” the report cited.
The report said that even before the Islamic Emirate swept into power, the country’s economy was in extremely poor shape. “In 2020, its gross national income per person was $500, making it the fifth poorest country in the world by this measure, and well below even the average for low-income countries ($689),” the report reads.
“The economic commission, the Ministry of Commerce and Industry and Ministry of Finance has a special plan in this regard and is working with the World Bank,” said Nooruddin Azizi, acting Minister of Industry and Commerce.
Economists said that there has been slow progress in Afghanistan’s licit economy over the past two decades.
“Overwhelming corruption in the government departments, lack of support for Afghanistan’s industry meant that the Afghan economy did not progress as it should,” said Darya Khan Baheer, an economist, speaking of the past 20 years.
“Opportunities were provided for Afghanistan by the international community. The injection of more than $140 billion was not used properly and we were just heading towards a fake GDP,” said Sayed Masoud, an economist.
Earlier, the World Bank in a report said that due to economic challenges GDP has decreased by more than 19%.