Afghanistan's economy is facing a dire crisis, as revealed in a recent report by the World Bank. The findings paint a bleak picture, highlighting significant declines across key indicators.
Last year, Afghanistan experienced a staggering 26% drop in its gross domestic product (GDP), marking a severe setback for the nation's economic stability, according to the World Bank. This decline has had far-reaching consequences, particularly for farmers, who saw their income plummet by $1.3 billion due to a ban on drug production in the country.
The economic woes extend beyond domestic factors, with Afghanistan's exports to Pakistan decreasing by 15%, further exacerbating the situation, reports Tolo News.
Structural deficiencies within the private sector, coupled with a lack of international aid, present formidable obstacles to Afghanistan's economic development, the World Bank emphasized.
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Sakhi Ahmad Payman, Deputy of the Chamber of Industries and Mines, echoed these concerns, attributing the economic downturn to various factors including the country's lack of recognition at the international level, funding cuts, and internal instability following the Taliban's takeover.
The Taliban's ascent to power has had profound repercussions for Afghanistan's economy, with the freezing of central bank assets leading to the loss of access to the international banking system and foreign exchange reserves, as highlighted by the World Bank.
Looking ahead, the outlook remains grim, with the World Bank projecting a continuation of the bleak economic conditions until 2025, as reported by Bayan News.
Analysts point to the Taliban's support of terrorist organizations as a key factor contributing to Afghanistan's economic woes. Since assuming control, there has been a notable surge in terrorism in the region, with groups like ISIS-K and TTP benefiting from the Taliban's backing, according to Al Jazeera.
Experts warn that instead of prioritizing the welfare of its people, the Taliban regime is diverting the country's resources towards supporting terrorism, further destabilizing the region.
