Afghanistan’s economy in ‘freefall’ – UN Emergency Relief Coordinator

Afghanistan: Afghanistan’s economy is in “free fall”, the UN Emergency Relief Coordinator told a special meeting on Sunday, warning that if decisive and compassionate action is not taken immediately, it may “pull the entire population with it”.

Speaking virtually to the 17th Extraordinary Session of the Organization of Islamic Cooperation (OIC) Council of Foreign Ministers in Islamabad, Pakistan, Under-Secretary-General for Humanitarian Affairs Martin Griffiths painted a grim picture of 23 million people facing hunger; malnourished children overflowing in health facilities; 70 per cent of teachers working without salaries; and millions of students – Afghanistan’s future – out of school.

Moreover, this is occurring as the value of the Afghani currency plummets, a lack of confidence in the financial sector destroys trade and the space for borrowing and investment dramatically constricts.

“The need for liquidity and stabilization of the banking system is now urgent – not only to save the lives of the Afghan people but also to enable humanitarian organizations to respond”, he said.

“Within a year, 30 per cent of Afghanistan’s Gross Domestic Product could be lost altogether, while male unemployment may double to 29 per cent”, he spelled out.

“The United Nations stands firmly with you, and in solidarity with the people of Afghanistan”, said the Relief Coordinator, explaining that next year, the UN would seek its largest-ever funding appeal of $4.5 billion “to help the most vulnerable in Afghanistan”.

The plan is a stopgap measure for over 21 million people who need lifesaving assistance and must be funded as “a matter of priority”.

– INDIA BLOOMS