The political change after the US troop withdrew last August pushed the country into a humanitarian and economic crisis, according to new report by UNDP, deteriorating lives of over 40 million population despite coordinated aids from international communities. The sudden stop of international aid suspended development services and support in Afghanistan, which constituted 70% of the total expenditure and contributed nearly 40% of the gross domestic product (GDP).
Last year, UNDP estimated the GDP could fall by 20% within a year and the ensuing inflation, lack of liquidity, disruption in the banking sectors, and a significant fall in aggregate demand could result in almost universal poverty by mid-2022 – Afghanistan is at this point. Since the Taliban marked one year rule in the country, the situation remains precarious and uncertain and the impact of the multiple crises continue to reverberate across Afghanistan.
“Two decades of heavy dependence on international aid and imports, a lack of industrialization and competitiveness, and limited mobility and connectivity among regions, among other factors, have hindered Afghanistan’s forward momentum,” report says. UNDP analysis forecast that restricting women from working can result in an economic loss of up to US$1b – or up to five percent of the country’s GDP.—Khaama News Agency
