Afghanistan's business sector urges US to release funds amid fear of economic catastrophe

Afghanistan's business sector on Monday warned that the country would face an economic disaster following the takeover by the Taliban and urged the United States to release its frozen assets. In a news conference in Kabul, the Afghanistan Chamber of Commerce and Investment (ACCI) and the Afghanistan Chamber of Mines and Industry (ACMI) warned of economic collapse unless the country's frozen deposits are freed, according to Tolo News. The freeze of Afghanistan's reserve by the US was condemned by private sector representatives as a violation of humanitarian law, and they urged the United Nations to defend the rights of Afghans in addition to the work it is doing to attract humanitarian aid to the country.

According to private sector officials, all financial transactions have halted in the previous month due to disruption in banking systems between Afghanistan and international banks, and if this continues, the private sector would experience a severe recession, reported Tolo News.

Officials from the private sector have also stated that the international community and the former Afghan government owe Afghan contractors billions of AFs, and that if the money is not paid, the contractors will go out of business. Officials further stated that due to the freezing of Afghanistan assets and the interruption in the banking system, they had lost hundreds of millions of dollars, according to Tolo News. "We urge the US and the rest of the world to resolve the frozen assets issue since the money belongs to the Afghan people. You should not hold people's money hostage if you have political differences with the government or some individuals," said Yunus Mohmand, the ACCI's acting director, as reported by ANI citing Tolo News.

'Most factories are experiencing severe financial, raw material shortages'

According to Tolo News, ACMI officials stated that most factories are experiencing severe financial and raw material shortages as a result of their inability to withdraw funds and that over a million workers have not been paid in the last month. "We have not paid our employees' salary for the past month. At least 700 employees work in my factory, and I've only been able to provide each of them with 5,000 Afghani to buy their families' basic needs. How can we work in this situation? Isn't this setting the way for our economic downturn? The world has helped us grow for the past 20 years, and now their misguided policies are paving the route for our demise," said ACMI's Director Shirbaz Kaminzada, reported ANI citing Tolo News. 

(With ANI inputs)

(Image: ANI/AP)