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18 September 2024

Can Afghanistan’s Economy Survive Without Aid?

Gul Maqsood Sabit

The evolving political landscapes and priorities of the United States and other donor nations may pose a threat to the ongoing provision of humanitarian aid funds, particularly in the form of regular dollar shipments, to Afghanistan. If aid is halted or diminished, it could have a severe impact on the country’s economy and its impoverished populace. The Interim Taliban Administration (ITA) will be required to assume the responsibility of catering to the needs of the population, potentially depleting the existing fiscal buffer that is currently allocated towards their own objectives.

It is imperative for the ITA to enact appropriate measures preemptively to prevent Afghanistan from facing another abrupt cessation or reduction in aid.

An estimated 23.7 million people, more than half of Afghanistan’s population, will need humanitarian assistance in 2024, as reported by the United Nations Office for the Coordination of Humanitarian Affairs (OCHA) in January of this year. The same report also stated that millions of people who have received assistance, including Afghans returning from Pakistan, will require ongoing support for basic needs such as food, cash, healthcare, education, suitable shelter, and access to water in the coming months. OCHA cautioned that the need for humanitarian assistance is increasing while donor funding is decreasing.

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