Afghan economy in ‘freefall’

Afghan economy in ‘freefall’

ISLAMABAD — Afghanistan’s economy is in “free fall”, the UN Emergency Relief Coordinator told a special meeting on Sunday, warning that if decisive and compassionate action is not taken immediately, it may “pull the entire population with it”. Speaking virtually to the 17th Extraordinary Session of the Organization of Islamic Cooperation (OIC) Council of Foreign Ministers in Islamabad, Pakistan, Undersecretary-General for Humanitarian Affairs Martin Griffiths painted a grim picture 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. Moreover, this is occurring 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. The UN official 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