The economy will contract by up to 30 per cent this year — which could push millions into poverty and cause a humanitarian crisis, the IMF warns
Taliban members keep watch near the site where a grenade was thrown at a Taliban vehicle at Deh Mazang Circle in Kabul on Wednesday. Pic/AFP
Afghanistan’s economic woes could fuel a refugee crisis impacting neighbouring countries, Turkey and Europe, the International Monetary Fund has said, BBC reported. The economy will contract by up to 30 per cent this year – which could push millions into poverty and cause a humanitarian crisis, the fund warned.
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The IMF said Afghanistan’s neighbours would be further hit because they rely on its funds for trade, the report said. Bordering Tajikistan has said it can’t afford to take in many more refugees. With foreign assets frozen and most non-humanitarian aid halted, inflows of cash to Afghanistan have all but dried up. In its regional economic outlook, the fund said, “A large influx of refugees could put a burden on public resources in refugee-hosting countries, fuel labour market pressures, and lead to social tensions, underscoring the need for assistance from the international community.”
While it’s unclear how many Afghan refugees there would be, the IMF estimates that if there were to be a million more, hosting them would cost Tajikistan $100m (£72m), Iran $300m and Pakistan $500m, the report said. Last month Tajikistan said it could not afford to take in large numbers of refugees unless it received international assistance while other Central Asian nations have said they have no plans to host refugees.
Russia calls for inclusive govt
Russia hosted talks on Afghanistan on Wednesday involving senior representatives of the Taliban and other factions. Russian Foreign Minister Sergey Lavrov emphasised “forming a really inclusive government fully reflecting the interests of not only all ethnic groups but all political forces of the country” is necessary.
US will not release Afghanistan’s assets
The US is still holding its previous stance on the Taliban and said that they will not release nearly 10 billion dollars of Afghanistan now frozen in the US banks, Khaama Press reported. US’s deputy minister of Finance, Wally Adeyemo said that it is important to keep pressure on the Taliban, but added that the people of Afghanistan should not be harmed. Adeyemo said that new means must be sought in order to provide Afghan people with humanitarian aid.
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