Islamic countries meet to discuss economic fate of Afghanistan
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On Sunday, Islamic countries met in Pakistan to discuss delivering economic aid to Afghanistan, which is on the verge of an economic crisis.
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The grand hall of the Pakistani parliament where the Islamic Cooperation Organization gathered.
As the official unemployment rate in Afghanistan is 11.7%, while 34.3% of those who are working make less than $1.90 per day, Afghanistan lies on the verge of a dire economic collapse and poverty. Acute malnutrition and starvation also loom on the horizon.
On Sunday, Islamic countries assembled in Pakistan to find ways to aid Afghanistan in avoiding an economic collapse after US' withdrawal. After many years of war, an economic collapse will have a "horrendous" global impact, according to the countries that attended the summit.
The meeting, which was called for on short notice, was concluded with an initiative by the Organization of Islamic Cooperation to organize a fund that will provide humanitarian aid by the Islamic Development Bank, which will allow countries to aid Afghanistan without dealing directly with the Taliban.
In August, after the Taliban took control of Afghanistan, the World Bank suspended all aid and funds to Afghanistan. Since 2002, the World Bank had offered more than $5.3 billion, mostly in grants.
Tom West, the United States' special representative on Afghanistan, also attended the meeting. Pakistan’s Foreign Minister Shah Mahmood Qureshi said that West met with the Taliban delegation on the sidelines of the summit. Qureshi narrated that US humanitarian aid to Afghanistan is not "preconditioned" and that there could be as much as $1.2 billion that could be provided through the World Bank.
The summit saw the attendance of special representatives of China, the US, and Russia, including the UN undersecretary-general on humanitarian affairs, as well as the president of the Islamic Development Bank Muhammad Sulaiman Al Jasser.
Al Jasser suggested that the Islamic Development Bank can manage trusts that can be employed to move money into Afghanistan, launch businesses, and aid in saving the Afghan economy.
Qureshi contended that without immediate aid, Afghanistan is bound to inevitable collapse, saying that the aftermath of such an event will be "horrendous." Terrorism, drug trade, mass exodus, starvation, and disease were among the consequences of such an event as mentioned by Qureshi.
Martin Griffiths, the UN undersecretary for humanitarian affairs and emergency relief coordinator, warned that Afghanistan will not be able to survive on donations alone, and that donor countries should allow their money to pay salaries of workers in the public sector and support “basic services such as health, education, electricity, livelihoods, to allow the people of Afghanistan some chance to get through this winter and some encouragement to remain home with their families.”
Last month, Pakistan's Foreign Minister warned during a meeting with US, Chinese, Russian, and Taliban diplomats in Islamabad that Afghanistan is on the verge of economic collapse. Qureshi led the meeting, adding that any further economic degradation would hinder the Taliban's capability to run the country.
China advocates for the release of Kabul's frozen assets
There have been calls to release $10 billion worth of Afghan assets, which the US and other countries have been holding captive.
Last month, China called on the US to unfreeze Afghanistan's foreign assets as soon as possible and stressed that the sanctions aggravate the humanitarian crisis in the country.
During a press conference, Chinese Foreign Ministry spokesman Zhao Lijian told reporters that "unilateral sanctions, especially Afghanistan's frozen assets overseas, are collective punishment on all Afghans and are worsening the humanitarian disaster" in the country.
He stressed that Afghanistan's frozen assets "should be returned to the real owners as soon as possible instead of being used as a tool for threats and coercion."
Zhao called on the international community to strengthen its cooperation and solidarity to provide assistance and support to Afghanistan in order to improve people's livelihood.
Taliban formulates economic aid without foreign aid
For the first time in 20 years, Afghanistan's economic plan will not include foreign aid. The finance ministry, under the new Taliban rule, has prepared a national draft for the budget on Friday.
Despite receiving 219 billion Afghanis in aid and grants and 217 billion from domestic sources, the former administration's budget for 2021 predicted a deficit.
The exchange rate was approximately 80 Afghanis to the dollar at the time, but the local currency has worsened since the Taliban took control, falling to 130 on Monday before rebounding to around 100 on Friday.
Ahmad Wali Haqmal, the finance ministry spokesperson, acknowledged that public employees are owed months of accrued salaries, saying "we are doing our best" to make up for unpaid salaries before the end of the fiscal year.
