The World Bank in a statement on Wednesday said that Afghanistan’s per capita income has fallen by around one-third in the last months of 2021, wiping out the country’s economic progress achieved since 2007.
The World Bank says Afghanistan’s aid-dependent services sector has been hit by the crisis, leading to a collapse in urban employment and incomes.
The political crisis has put the gains of around two decades in Afghanistan at risk and will lead the country to grave poverty, the World Bank said. According to the statement, if the current condition continues, the Gross Domestic Product per capita will decline by around 30 percent between end-2020 and end-2022.
The World Bank updates indicated that the outlook for Afghanistan’s economy is dire under current conditions with international assistance limited to supporting humanitarian needs and basic services, incomes will remain stagnant and the economy is expected to contract further throughout 2022.
The World Bank update said joint actions are required to move away from this path. The Islamic Emirate government should respect human rights, especially rights of women and girls to receive additional international assistance and advice and the international community should continue to support basic human rights within Afghanistan in any circumstances.
Meanwhile, officials at the Afghan Ministry of Economy said the ministry has economic plans to improve the situation.
“To control the situation, the Ministry of Economy has a strategic plan in which trade and transit are focused on,” said Abdul Latif Nazari, deputy minister of Economy. Economic experts believe that Afghanistan will experience a great economic tragedy if the condition continues.
“The poverty, unemployment and humanitarian crisis will expand if the situation continues, and we will gradually lose the basics of economy in Afghanistan,” said Shabeer Basheeri, economic expert.
World Bank has suggested the Afghan government encourage the private sector to expand its activities and make the necessary plans to attract foreign investments to help protect the achievements of the Afghan people.
The organization has also called on the donor nations to continue their support to Afghanistan for another four years in the structure of Afghanistan Reconstruction Trust Fund (ARTF).—Tolonews
