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UN warns Afghanistan economy in ‘freefall’
Under-Secretary-General for the UN’s Humanitarian Affairs Martin Griffiths painted a grim picture on Sunday of 23 million people facing hunger; malnourished children overflowing in health facilities; 70 percent of teachers working without salaries; and millions of students – Afghanistan’s future – out of school.
Speaking virtually to the 17th Extraordinary Session of the Organization of Islamic Cooperation (OIC) Council of Foreign Ministers in Islamabad, Pakistan, Griffiths said the crisis is unfolding 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.
Griffiths also welcomed the decision by the World Bank's Afghanistan Reconstruction Trust Fund to transfer $280 million by the end of December to the UN Children’s Fund (UNICEF) and the World Food Programme (WFP).
“This step should be followed by reprogramming of the whole fund to support the Afghan people this winter”, he said.
“Families simply do not have the cash for everyday transactions, while prices for key commodities continue to rise”.
The cost of wheat and fuel are up by around 40 percent and food now accounts for more than 80 percent of the average household expenditure.
And as international development support has frozen up, basic social services that all Afghans depend on are collapsing.
Griffiths cautioned that by the middle of next year, universal poverty – reaching 97 percent of the population – could be “the next grim milestone”.
“Within a year, 30 percent of Afghanistan’s gross domestic product could be lost altogether, while male unemployment may double to 29 percent”, he spelled out.
The OIC met on Sunday to express their willingness to help avert disaster and contribute to the humanitarian endeavor.
Griffiths meanwhile also said 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”, he said.
“The crisis is huge. Our humanitarian response is effective and continues to scale up, thanks to generous donor support and your sustained engagement”, he stated.
Griffiths also said that Afghanistan will not get through the winter on emergency aid alone and stressed the need for “flexible donor funding” that can be used to ensure salaries for public sector workers and support to basic services, such as health, education, electricity and livelihood.
He said going forward, continued constructive engagement with the Islamic Emirate of Afghanistan (IEA) authorities was imperative to “clarify what we expect of each other”.
“The consequences of inaction on these three fronts are clear: Afghanistan will collapse, people will run out of hope, and the region – and indeed the world – will see destabilization increase”, he underscored.
Noting that the OIC meeting was being held at “a moment of exceptional gravity for the people of Afghanistan”, Griffiths pointed out that “we have the advantage of being forewarned of the fate that awaits them if we do not act”.
Acknowledging that the meeting has provided both a chance and an opportunity to do so, he warned that “if we do not act with urgency and with a collective will, then there will be a terrible reckoning”.
“We cannot fail to do what we know is right, and what we know is possible”, concluded the Emergency Coordinator.
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IEA flatly rejects UN report on poppy cultivation increase in Afghanistan
The Ministry of Interior’s spokesman Abdul Matin Qane said on Wednesday the Islamic Emirate “completely” rejects the UN Office on Drugs and Crime (UNODC) report that poppy cultivation has increased by 19 percent this year, against 2023.
UNODC released its report on Wednesday, claiming opium cultivation rose by 19 percent despite a ban by the Islamic Emirate that almost eradicated the crop.
The 19 percent increase (12,800 hectares of poppies) year-on-year remains far below the 232,000 hectares cultivated when the IEA’s supreme leader Hibatullah Akhundzada banned the crop in April 2022.
Qane said in a statement the report is far from the truth.
"Since narcotics are a destructive phenomenon and forbidden from the perspective of the religion of Islam, the Islamic Emirate of Afghanistan based on the order of the leadership of the Emirate, has put the fight against this phenomenon as a priority.”
For years Afghanistan was the world's biggest supplier of opium and heroin.
Many farmers in Afghanistan were hit hard financially by the ban and have not been able to reap the same profits from alternative crops.
The Islamic Emirate has however repeatedly called for international support for farmers to transition to alternative crops and livelihoods.
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IEA hopes Trump govt will usher in new chapter between Kabul and Washington
Foreign Ministry spokesman Abdul Qahar Balkhi said late Wednesday in a statement that in the light of a balanced foreign policy, the ministry hopes that the future American government under newly elected president Donald Trump will take realistic steps to achieve its goals so that significant progress can be made in relations between Kabul and Washington.
Balkhi said it is hoped that both countries can open a new chapter of relations in light of mutual interaction.
He added that the Doha agreement between the Islamic Emirate and the United States was signed during the presidency of Donald Trump, and after that, the 20-year occupation ended in Afghanistan.
He stated IEA hopes that Trump may play a constructive role in ending the current war in the region and the world, especially in Gaza and Lebanon.
Donald Trump on Wednesday won the presidential election in the US after beating Kamala Harris.
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DABS owed 12 billion AFN by former government officials
At present, 950 megawatts of electricity is consumed annually in the country, of which just over 300 megawatts is produced domestically and the balance is imported from neighboring countries.
Da Afghanistan Breshna Sherkat (DABS), the country’s power utility company, said Wednesday that ex-officials of the former government and state institutions owe 12 billion afghanis (AFN) in unpaid electricity debt.
The head of DABS has warned the ex-officials that if they do not pay the electricity consumption fee, their houses and assets will be seized.
Last year, DABS announced that it had collected $681 million dollars in debt from former officials and commercial and industrial companies.
Head of Da Afghanistan Breshna Sherkat (DABS), Abdul Bari Omar, said Tuesday that the utility company pays for their imported power on the 27th and 28th of every month.
According to Omar, the company is up-to-date on its payments.
Last year, DABS's spokesperson said the company had settled debt totaling $627 million that had been carried over from the former government.
This money was paid to Uzbekistan, Turkmenistan, Tajikistan and Iran.
Omar stated that in the last three months, energy production projects worth $400 million have been put into operation and other projects are on the agenda.
According to him, these projects include wind, gas, coal and solar energy initiatives.
On the Kajaki dam in Helmand, he said the dam will be able to produce 150 megawatts of electricity within the next year.
While efforts are being made to increase electricity production, Afghans continue to struggle with little or no power.
At present, 950 megawatts of electricity is consumed annually in the country, of which just over 300 megawatts is produced domestically and the balance is imported from neighboring countries.
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