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With the IEA takeover in last August, donor countries and international organizations cut off or suspended their aid. In addition, the United States has frozen Afghanistan’s foreign reserves and imposed sanctions on the banking system and international money transfers. After the Islamic Emirate of Afghanistan (IEA) takeover on 15 August 2021, international aids were suspended, […]
With the IEA takeover in last August, donor countries and international organizations cut off or suspended their aid. In addition, the United States has frozen Afghanistan’s foreign reserves and imposed sanctions on the banking system and international money transfers.
After the Islamic Emirate of Afghanistan (IEA) takeover on 15 August 2021, international aids were suspended, and foreign assets of the country’s central bank were frozen, which put negative impacts on the country’s economy.
With all challenges and concerns raised over human rights, controlling the country’s economic cycle is considered as one of the important questions that have worried the people of Afghanistan.
The U.S. with its sanctions on Afghanistan wants to collapse the Afghan economy, but despite of continued pressures from the U.S. side and sanctions as well as not releasing Afghanistan foreign assets by the U.S., the people of Afghanistan together with the Islamic Emirate are still trying to work towards reviving the country’s economic situation.
In the past governments, especially in the last twenty years, most of Afghanistan’s budget was provided by the international community, especially the United States. Now, most humanitarian aids are being provided by the United Nations, but these aids are not enough for the people in the current situation as 97 percent of the people live below the poverty line.
Afghanistan’s economy has experienced many ups and downs throughout history. In fighting circumstances, the growth rate has been negative, while in partial stable situation, the growth rate has reached double digits.
In the last two decades, national and international organizations used to publish reports on the status of important economic indicators each year.
These indicators have included growth rate, GDP, inflation rate, per capita income, poverty rate, unemployment rate and others. During those periods, Afghanistan’s economy has been heavily dependent on foreign aid, and a large part of the government’s budget has been provided by donor countries.
Although one year has passed since the U.S. put sanctions on Afghanistan, but if we see, in the current situation, the continued sanctions have put increasing pressures on the people. Despite the continued pressures, the people of Afghanistan have been able to stand by the IEA.
Although the people of Afghanistan by holding protests countrywide have continually asked the United States to release the frozen money of Afghanistan’s Central Bank, but the United States has yet to make any decision in this regard.
In the previous government, the value of the Afghani currency against foreign currencies was controlled to some extent by using the policy of injecting dollars into the market.
Besides, the banking system was operating regularly, people and businessmen had access to their bank accounts without any restrictions.
Money transactions were possible through the banking system or international money transfer channels, such as Western Union, SWIFT and MoneyGram.
Nevertheless, today the economic pressures from the U.S. side are increasing by passing each single day.A number of people of Afghanistan believe that the U.S. cannot destroy the economy of Afghanistan with its continued sanctions as the people are mostly engaged in doing business, interested in investing in the country and standing beside the IEA.
It is expected that the Islamic Emirate of Afghanistan, along with the people of Afghanistan, is able to revive the collapsed economy of Afghanistan and make the country reach self-sufficiency.
It’s worth mentioning that in the past year, the IEA has always stressed on financial independence as clearly seen in the national budget. In such a situation, it would be good to focus on increasing domestic sources.Shukria Kohistani
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