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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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Afghanistan’s Swiss fund grows to $4.2 billion: Ahadi
Ahadi said the fund has not been used and will remain intact until conditions allow for its transfer to Da Afghanistan Bank, Afghanistan’s central bank.
Afghanistan’s sovereign assets held in Switzerland have grown to $4.2 billion after generating approximately $700 million in investment returns, according to Anwar-ul-Haq Ahadi, a member of the Special Trust Fund for Afghanistan (STFA).
Speaking during the 70th online conference of the Association of Afghan Scholars and Specialists on Sunday, July 26, 2026, Ahadi said the fund has not been used and will remain intact until conditions allow for its transfer to Da Afghanistan Bank, Afghanistan’s central bank.
The conference was held under the theme, “Afghanistan’s Economic and Political Situation: Realities and Future Outlook.”
Ahadi said none of the assets have been spent since the fund was established, emphasizing that the money is being preserved for the benefit of the Afghan people.
Commenting on the remaining $3.5 billion in Afghan sovereign assets frozen in the United States, Ahadi said two U.S. courts have already ruled in Afghanistan’s favor. He expressed confidence that the third and final court would also order the release of the funds, allowing the assets to remain protected for the Afghan people.
The Swiss-based fund was established to safeguard a portion of Afghanistan’s overseas sovereign assets while efforts continue to resolve the legal status of the remaining reserves frozen in the United States.
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Afghanistan, Uzbekistan ink 22 trade agreements worth over $200 million
Uzbek Deputy Prime Minister Jamshid Khodjayev welcomed the growing ties between the two countries, describing Afghanistan as a country undergoing significant development through major infrastructure projects.
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Afghanistan, Uzbekistan discuss expanding transit cooperation and advancing railway projects
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