To beat inflation and get the economy back on track, the Taliban is appealing to the international community to come to its rescue and is demanding more than $7 billion in foreign exchange reserves seized by the US.
Image Credit source: AP/PTI
ravaged by war Afghanistan on Thursday to promote domestic and foreign investment in Kabul More than 700 companies are participating in an international exhibition that started in After the Taliban took over Kabul in 2021, Afghanistan’s $22 billion economy has shrunk by 20 percent. Because of this the people here are facing a lot of difficulties. Many are even trapped in the organ trade to survive.
However, according to a World Bank report, “signs of economic stability” are visible in this country and the standard of living has also improved. But the pathetic condition of the country still persists and due to inflation, welfare measures are also proving insufficient.
To beat inflation and get the economy back on track, the Taliban is appealing to the international community to come to its rescue and is demanding more than $7 billion in foreign exchange reserves seized by the US.
‘Environment better for investment in Afghanistan’
During the opening ceremony of the exhibition in Kabul, Afghanistan’s Second Deputy Prime Minister Mullah Abdul Salam Hanafi said that “the climate in the country is good for investment and domestic and foreign investors can invest.” According to TOLO News, the deputy prime minister said, “All areas for investment in Afghanistan are available to everyone.”
Afghanistan is rich in minerals including copper, gold, oil, natural gas, uranium, bauxite, coal, iron ore, lithium and chromium, among others. Whose value is considered to be 3 trillion US dollars. The country also has the potential to generate 23,000 MW of hydropower.
After the Taliban takeover, all the major economies of the world, including the US and Europe, left Afghanistan in a sorry state. While earlier these countries were doing the work of reconstruction programs and development of industries here. The Taliban, which has faced international condemnation for its poor treatment of women and minorities, is struggling to keep the economy afloat. Even its neighboring countries, like Pakistan and Iran, are also refraining from making any major investments here.
far west, close to china
The Taliban has been publicly saying that it is depending on China to help it out of the economic crisis facing Afghanistan. On the other hand, Beijing has also continued its support by keeping its embassy in Kabul operational. Chinese Foreign Minister Wang Yi visited the country in March and condemned the “political pressure and economic sanctions imposed on Afghanistan by non-regional forces”. It was the first country to announce a humanitarian aid program in Afghanistan, which was hit by a devastating earthquake earlier this year.
China is eyeing the huge lithium reserves here. It is used in making batteries. China is “actively engaged” with Kabul on the construction of the Peshawar-Kabul motorway. This motorway will bring Afghanistan closer to China’s Belt and Road project.
Beijing is also cooperating on the construction of the Wakhan Corridor, a narrow corridor in the northeast of Afghanistan. It connects China’s Xinjiang province and Pakistan and Central Asia. In this corridor, there were clashes between the Taliban and the Pakistan Army this year for their respective control. Once completed, the Wakhan Corridor will serve as a gateway to extract natural resources from Afghanistan and bring them directly to China. Alarmed by the Chinese move, the US has said investment by Beijing will present “security and good governance challenges for the West”.
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