Afghanistan Is Facing a Total Economic Meltdown

Afghanistan Is Facing a Total Economic Meltdown

When I was traveling around Kabul a few weeks ago, the city felt worlds apart from my last visit in 2019 — and not just because a 20-year war had finally ended. The economy is spiraling out of control. And unless money starts flowing soon, a total economic collapse will plunge Afghans into a humanitarian catastrophe.

The desperation is everywhere. Mothers I sat down with in makeshift tents told me their families have no income and no reserves, and they’re worried that their children will starve and freeze to death this winter.

I met teachers, health workers and water engineers who have not been paid since May. They can no longer support their extended families or keep vital public services afloat. Without functioning banks and liquidity, ordinary Afghans are cut off from their life savings and have no way of surviving.

When the Taliban toppled Afghanistan’s government in August, the country suddenly lost access to more than $9 billion in central bank reserves, frozen by the Biden administration. This sent shock waves through the banking system and prompted capital control measures by the new Taliban leaders, leading to bank closures and halting the economy.

The political conflict with the Taliban must not punish the