United Nations: Warning that Afghanistan is facing “a make-or-break moment,” the United Nations chief on Monday urged the world to prevent the country’s economy from collapsing.
Secretary-General Antonio Guterres also appealed to the Taliban to stop breaking its promises to allow women to work and girls to have access to all levels of education.
Eighty per cent of Afghanistan’s economy is informal, with women playing an overwhelming role, and “without them there is no way the Afghan economy and society will recover,” he said.
He said the UN is urgently appealing to countries to inject cash into the Afghan economy, which before the Taliban takeover in August was dependent on international aid that accounted for 75 per cent of state spending.
The country is grappling with a liquidity crisis as assets remain frozen in the US and other countries, and disbursements from international organisations have been put on hold.
“Right now, with assets frozen and development aid paused, the economy is breaking down,” Guterres told reporters at UN headquarters in New York.
“Banks are closing and essential services, such as health care, have been suspended in many places.”
The UN chief said that injecting liquidity to prevent Afghanistan’s economic collapse is a separate issue from recognition of the Taliban, lifting sanctions, unfreezing frozen assets or restoring international aid.
Guterres said cash could be injected into the Afghan economy “without violating international laws or compromising principles”.
He said this could be done through UN agencies and a trust fund operated by the UN Development Program as well as non-governmental organisations operating in the country. He added that the World Bank could also create a trust fund.