AVN 65.20 Increased By ▲ 0.25 (0.38%)
BAFL 30.74 Decreased By ▼ -0.77 (-2.44%)
BOP 4.80 Increased By ▲ 0.01 (0.21%)
CNERGY 3.71 Decreased By ▼ -0.13 (-3.39%)
DFML 14.21 Decreased By ▼ -0.20 (-1.39%)
DGKC 41.05 Decreased By ▼ -0.55 (-1.32%)
EPCL 46.45 Decreased By ▼ -0.25 (-0.54%)
FCCL 11.40 Increased By ▲ 0.11 (0.97%)
FFL 5.05 No Change ▼ 0.00 (0%)
FLYNG 5.80 Decreased By ▼ -0.02 (-0.34%)
GGL 10.33 Decreased By ▼ -0.12 (-1.15%)
HUBC 66.87 Increased By ▲ 1.23 (1.87%)
HUMNL 5.71 Increased By ▲ 0.05 (0.88%)
KAPCO 27.76 Increased By ▲ 0.01 (0.04%)
KEL 2.20 Increased By ▲ 0.05 (2.33%)
LOTCHEM 24.90 Increased By ▲ 0.55 (2.26%)
MLCF 21.44 Decreased By ▼ -0.04 (-0.19%)
NETSOL 83.60 Decreased By ▼ -1.19 (-1.4%)
OGDC 85.90 Decreased By ▼ -1.35 (-1.55%)
PAEL 11.01 Increased By ▲ 0.03 (0.27%)
PIBTL 4.22 No Change ▼ 0.00 (0%)
PPL 74.48 Decreased By ▼ -1.22 (-1.61%)
PRL 13.43 Decreased By ▼ -0.22 (-1.61%)
SILK 0.92 Increased By ▲ 0.03 (3.37%)
SNGP 40.40 Decreased By ▼ -0.93 (-2.25%)
TELE 5.86 Increased By ▲ 0.01 (0.17%)
TPLP 15.40 Decreased By ▼ -0.24 (-1.53%)
TRG 111.41 Decreased By ▼ -0.29 (-0.26%)
UNITY 13.75 Decreased By ▼ -0.23 (-1.65%)
WTL 1.14 Decreased By ▼ -0.02 (-1.72%)
BR100 4,037 Decreased By -26.9 (-0.66%)
BR30 14,412 Decreased By -56.6 (-0.39%)
KSE100 40,471 Decreased By -262.4 (-0.64%)
KSE30 15,163 Decreased By -67.2 (-0.44%)
World

Former Afghan central bank chief warns of 'difficult economic situation'

  • Ahmady, who fled the country just after Kabul fell to the Taliban in mid-August, says international sanctions that block aid funding and restrict access to $9 billion in reserves also could create a shortage of domestic currency
Published September 10, 2021
Follow us

WASHINGTON: With the Taliban in control and foreign aid blocked, Afghanistan's economy is likely to contract sharply as it faces a shortage of cash, the nation's former central bank chief said Friday.

"I don't want to say economic collapse, but I think it's going to be (an) extremely challenging or difficult economic situation," Ajmal Ahmady said, predicting GDP would shrink by 10 to 20 percent.

Ahmady, who fled the country just after Kabul fell to the Taliban in mid-August, said international sanctions that block aid funding and restrict access to $9 billion in reserves also could create a shortage of domestic currency.

"Obviously, the access to dollars is going to be severely curtailed. But there's also the question of local currency afghanis" since the country has no local printing press, he said in a discussion hosted by The Atlantic Council.

Afghanistan GDP may slump 20% after Taliban takeover: Fitch Solutions

The central bank was expecting a shipment of two billion afghanis from a Polish firm, and had signed a contract for another 100 billion from a French company, but it is unlikely they will be able to deliver the bills, Ahmady said.

Amid the cash crunch, "You're going to see the currency depreciate (and) inflation rise because we import significant amounts of food," he said.

"I think that's going to be another constraint for the Taliban regime."

Even before the collapse of the civilian government, Afghanistan "was already facing a triple shock" of the Covid-19 pandemic, a regional drought and the ongoing conflict.

Most of the country's reserves are held in the United States, which is keeping them out of reach of the Taliban, while the IMF and World Bank have frozen any lending programs with the country.

Comments

Comments are closed.

Former Afghan central bank chief warns of 'difficult economic situation'

PM Shehbaz says IMF giving Pakistan tough time over unlocking loan

Roshan Digital Accounts: inflow clocks in at meagre $110mn in January

Apex committee decides to engage Afghan govt for final action against TTP

Pakistan’s oil industry on brink of collapse, says OCAC

China says it ‘regrets’ unmanned airship’s entry into US airspace

Fed seen hiking policy rate above 5% as hiring surges

Cotton arrival plunges 36% year-on-year

KSE-100 retreats 0.64% as rupee falls further

Imran Khan decides against contesting by-elections on 33 NA seats

2 terrorists killed in North Waziristan: ISPR