Taliban rule in Afghanistan faces economic crisis

Taliban rule in Afghanistan faces an economic crisis following its takeover of the landlocked country in August this year.

Taliban rule in Afghanistan faces an economic crisis following its takeover of the landlocked country in August this year. The Afghan economy has gone from bad to worse and could lead to total collapse, reports the Asia Times.

The International Monetary Fund (IMF) in its report has mentioned that the Afghan economy could shrink by 30 percent or more year on year which could lead to a famine situation. Earlier, the western foreign aids warned of the present situation in Afghanistan as the US and the North Atlantic Treaty Organization countries withdrew troops in August.

When the Taliban seized power, existing US sanctions, including the influential Haqqani network that now controls the all-powerful interior ministry, were automatically extended to the wider Taliban regime, effectively shutting the door on most foreign aid and assistance. According to the Asia Times, the IMF, World Bank, European Union, US, and other foreign funding agencies have stopped aid to eliminate transnational jihad networks in its midst.

Significantly, the US has refused to unfreeze Afghanistan's almost USD 9.5 billion held in US banks and financial institutions. Reports mention that the Taliban earlier had collected agriculture tax on opium production and legal and illegal border trade in areas it controlled

Meanwhile, a UN report says that Afghanistan's banking system, too, is on the brink of a collapse adding to Kabul's economic woes. (ANI).

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)