Afghanistan’s Banking System Close to Collapse; Survival Only Based on International Funds: Report

After the Taliban takeover, the West has frozen international funds, including assets Afghanistan could have accessed with the World Bank and International Monetary Fund (IMF).

New Delhi: Afghanistan’s banking system is close to collapse as said by Chief Executive of the Islamic Bank of Afghanistan, Syed Moosa Kaleem Al-Falahi. He said that the country’s financial industry is in the grip of an “existential crisis” as customers panic, as reported by BBC.

“There’s huge withdrawals happening at the moment”, he said, speaking from Dubai, where he is temporarily based because of the chaos in Kabul. “Only withdrawals are happening, most of the banks are not functioning, and not providing full services,” he added.

Afghanistan’s economy was already on shaky ground even before the Taliban took control of the city of Kabul in August.

After the Taliban takeover, the West has frozen international funds, including assets Afghanistan could have accessed with the World Bank and International Monetary Fund (IMF).

Afghanistan’s survival is based now only on accessing international funds and foreign assistance. But countries like the US have said that while they are willing to consider working with the Taliban – it will depend on some pre-conditions – including the regime’s treatment of women and minorities. The Taliban swept Kabul in the month of August and now is led by Mullah Mohammad Hasan Akhund.

(With Inputs From IANS)