Afghanistan's economy on brink of collapse under Taliban's rule, says WFP official

Afghanistan’s director at World Food Programme (WFP), Mary-Ellen McGroarty, on Wednesday, 6 October, said that the economic situation in the war-torn country under the Taliban government continues to deteriorate. While speaking to reporters, McGroarty said that Afghans are not receiving their wages, and there is a shortage of work. She also added that the country’s healthcare system is also nearly destroyed, and food and fuel prices have skyrocketed. 

McGroarty told reporters that “the situation that the (Afghan) economy is in is just actually exacerbating.”

Further, the WFP official said that a restart of the economy is urgently needed in Afghanistan, suggesting that the first step should be unlocking reserves. It is to mention that after the Taliban violently took over Kabul in August, the World Bank and the International Monetary Fund (IMF) suspended financial assistance to the new government formed by the insurgents. Their support had accounted for nearly 75 per cent of Afghanistan's public expenditure. 

Afghanistan’s economic woes 

Additionally, the US had also frozen billions of dollars in assets belonging to the Afghan Central Bank. Following the Taliban’s takeover, it was also reported that electricity bills haven’t been paid to countries that supply a total of 78 per cent of energy to Afghanistan. Now, experts fear that drastic measures would be needed to prevent the war-ravaged nation from returning into dark ages such as the Taliban scrambling to collect funds from citizens to pay off the utility bills. 

Amid the economic woes,Taliban leaders  this week had met with UK officials for the first time since taking power, a move that the insurgent group believes will pave the way for the country to refill cash-starved coffers. According to AP, UK Prime Minister's High Representative for Afghan Transition Sir Simon Gass and Martin Longden, the charge d'affaires of the UK mission in Afghanistan, met Taliban representatives in Doha. Following the meeting, the Taliban said that it was committed to have good relations with all the nations. 

“In return, we want the international community to return the cash capital of the Afghan nation to our nation,” the Taliban added, referring to billions in Afghan assets frozen in U.S. accounts.

(With inputs from agencies)