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Updated December 14th, 2021 at 08:10 IST

Afghanistan receives 3rd batch of World Bank's USD 19.2 mn aid amid rising economic woes

Afghanistan International Bank, on Sunday, received the third batch of World Bank’s USD19.2 million cash assistance as a part of its humanitarian aid.

Reported by: Riya Baibhawi
Afghanistan
Afghanistan | Image:self
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Afghanistan International Bank, on Sunday, received the third batch of World Bank’s USD19.2 million cash assistance as a part of its humanitarian aid to the conflict-hit country. Soon after the Taliban overhauled power in August, almost all major players of the international community froze aid to Kabul, pushing the Afghan rupee to the brink of collapse. Meanwhile, all the cash was received by the Taliban which transported it from the Kabul International Airport to Afghanistan International Bank.  

Afghanistan has slipped into its worst economic crisis in decades with the value of the local currency falling to 114 for every single US dollar, according to Khaama Press. It stated that ‘common people’ are the real victims of the ongoing economic situation as prices of everything- including food grains have skyrocketed. Previously, the United Nations (UN) had wanted that the country needed urgent global action to prevent a collapse. 

More than half of the population starving

According to a UN report, more than 22 million people in the country face acute food shortages as winter takes hold in the country. Notably, since the Kabul takeover, the US has frozen over US$9 billion of Afghanistan’s hard currency assets, while both International Monetary Fund (IMF) and World Bank halted its access to their humanitarian aid. Several reports of material aid being restricted to the outskirts of the country by Talibs also surfaced. 

Elaborating on the Afghan situation, World Bank in a statement said, “ Sharp reductions in international aid are driving a collapse in basic health and education services. The sudden loss of public sector activity will have impacts throughout the economy, especially in the service and construction sectors (which account for 58 per cent of GDP). Declining grants combined with a loss of access to foreign exchange is expected to result in a balance of payments crisis, with Afghanistan historically reliant on grant inflows to finance its very large trade deficit (28 per cent of GDP in 2020). "

(Image:AP)

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Published December 14th, 2021 at 08:10 IST

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