US aid cut may decreas Afghan economy by 7%: USAID
Tawazon – The Center for Global Development, in a newly published report, has stated that the suspension of US aid will have catastrophic consequences for poor countries, including Afghanistan.
The report mentions that Afghanistan is one of eight countries most dependent on US aid.
The Center for Global Development also stated that 35% of all foreign aid to Afghanistan was provided by the US Agency for International Development (USAID), and the suspension of this aid will result in a 7% reduction in Afghanistan’s economic growth.
Meanwhile, some Kabul residents have expressed concerns over economic challenges and unemployment, calling on authorities to assist those in need.
“My request to the Taliban officials is to come and survey our home and help those who are in need, especially as the holy month of Ramadan is approaching,” Mujahid, a Kabul resident told.
The Taliban’s Ministry of Economy acknowledged the short-term negative impact of the suspension of US humanitarian aid on those in need but said that it will have no effect on the overall economy of Afghanistan.
“In the short term, it will have negative effects on our people as some benefited from this aid, but overall, it cannot negatively impact the country’s economy because all economic programs rely on domestic revenue,” Abdul Rahman Habib, the Taliban’s spokesperson for the Ministry of Economy, told.
“Aid organizations operating in Afghanistan did not have significant efficiency, faced distribution challenges, and were not effective and beneficial,” said Abdul Ghaffar Nazami, an economic analyst.
According to the report by the Center for Global Development, the United States has provided over $3 billion in financial aid to Afghanistan in the past three years and has been the country’s largest financial supporter.
However, the restriction of this aid has placed Afghanistan among the most economically vulnerable countries in the world.
