UN Requires $5Bln To Stabilize Economic Situation In Afghanistan

 UNITED NATIONS :

The UN requires at least $5 billion or more to stabilize the economic situation in Afghanistan amid high inflation and deteriorating state of affairs in the world,

“We asked for $4.4 billion. They didn’t even give us $2 billion.

The deficit is big In recent months, the price of the consumer basket has increased by 29% due to the situation in the world and in Afghanistan.

Therefore, even those $4.4 billion will not be enough,” Alakbarov said. “If we collect $5 billion or more this year, this may help stabilize the situation.”

At the moment,Economic Situation In Afghanistan  the United Nations has less than $2 billion and this is a “very small amount,” Alakbarov said.

Earlier in August, Alakbarov said that millions of lives are under threat in Afghanistan amid severe and harsh humanitarian conditions as the winter approaches.

An interim Afghan government led by the Taliban came to power last fall after the withdrawal of US troops from the country and the collapse of the US-backed government.

The Taliban takeover triggered economic disarray and food shortages that have pushed the country to the brink of a humanitarian crisis

Thousands of Afghans have fled the country fearful of the Taliban, amid widespread violation of human rights, and the deprivation of women and girls of their freedoms

While As Per World bank Economic Situation In Afghanistan:

The financial sector remains in crisis, with the core functions of the central bank and banking sector unfulfilled. A World Bank rapid private sector survey conducted in late 2021

Showed 81 percent of respondent firms reporting difficulty in sending or receiving payments domestically and 95 percent facing difficulties dealing with international payments.

Around 85 percent of NGOs report that inability to transfer funds from overseas and limited access to cash are major constraints to their operations.

The difficulties Afghan businesses face in making and receiving payments has forced enterprises to make increasing use of informal financial services, including through the hawala system.

The ITA has moved quickly to restore revenue collection, and revenue performance has steadily improved.

Monthly collections reached Afs 13 billion on average during January-March, slightly exceeding the monthly average of the first quarter in 2020.

In the absence of on-budget grants, however, budget spending has sharply declined. The ITA’s interim budget approved in January 2022,

That’s includes total recurrent allocations 34 percent lower than 2019 levels, mainly due to cuts to the defense (50 percent)

While public order and safety (34 percent) budgets while those for education and health were maintained Most development expenditures were eliminated.

Actual expenditures are expected to have fallen significantly short of planned levels due to revenue shortfalls and an unfinanced deficit.