Afghanistan’s economy on brink of collapse: USIP

The United States Institute of Peace (USIP) said in a report published on Friday that Afghanistan’s economy is on the verge of collapse.

USIP said that most Afghan families are facing difficulties to meet their basic needs.

Increasing return of migrants, restricting women’s work, and banning poppy cultivation without providing alternative crops for farmers are among key factors mentioned in the report as the reason for the deterioration of Afghanistan’s economic situation.

“The government’s ban on poppy cultivation without an alternative livelihood program for farmers will reduce their income by more than a billion dollars, which will increase poverty and deprivation. Nearly, 60,000 women have lost their jobs with the recent government ban on makeup salons. In general, preventing and limiting women’s work is another serious problem for Afghanistan’s economy,” read the report.

Meanwhile, the Ministry of Economy rejected this report, saying that the economic situation of Afghanistan at a regional level is progressing under systematic management.

The officials emphasized that the published report is not based on the realities of Afghanistan’s economic system.

“The Ministry of Economy of the Islamic Emirate of Afghanistan strongly rejects the report of the United States Institute of Peace and describes it as completely unconstructive in this situation,” said Abdul Latif Nazari, the deputy minister of economy.

The Islamic Emirate is considered one of the successful governments in the region in the economic growth and development of Afghanistan by starting large infrastructure projects, controlling the inflation rate and maintaining the stability of the national currency against foreign currencies, he said.

In addition, a number of economic experts emphasized that the Islamic Emirate should provide job opportunities for the people and necessary facilities for investment growth in order to overcome the existing problems.

In the USIP report, foreign aid to Afghanistan is also mentioned and it is stated that this aid will be close to $3 billion in 2022 and will be reduced by half in 2023.