UN Creates Trust Fund for Afghanistan Amid Lack of Cash | Taliban news
The UNDP says the special fund aims to inject cash into Afghan households as the country suffers from an “economic implosion.”
The United Nations says it has set up a trust fund to provide Afghans with urgently needed money directly through a system that draws on donor funds frozen since the Taliban takeover in August. .
With the “implosion” of the local economy, the goal is to inject liquidity into Afghan households to enable them to survive this winter and stay in their homeland despite the unrest, he said Thursday.
Achim Steiner, administrator of the United Nations Development Program (UNDP), said that Germany, a first contributor, had pledged 50 million euros ($ 58 million) to the fund and that it was in contact with other donors to mobilize resources.
UNDP has costed the activities to be covered in the first 12 months at around $ 667 million, she said.
“What we are seeing is not just a nation and a country in political turmoil; we are also witnessing an economic implosion, ”he said at a press conference in Geneva.
“We have to intervene, we have to stabilize a ‘people’s economy’ and, in addition to saving lives, we also have to save livelihoods,” he said.
“Because otherwise, we will be faced with a scenario during this winter and next year where millions and millions of Afghans are simply unable to stay on their lands, in their homes, in their villages and survive. The implications of this are not difficult to understand, ”he said.
The International Monetary Fund said on Tuesday that the Afghan economy is expected to contract by up to 30% this year, which is likely to further fuel the refugee crisis that will affect neighboring countries Turkey and Europe.
The Taliban takeover saw billions in central bank assets frozen and international financial institutions suspended access to funds, although humanitarian aid continued.
Banks are running out of money, civil servants are not being paid, and food prices have skyrocketed.
In a report from Kabul, Stefanie Dekker of Al Jazeera said: “The international community agrees that the money must get here quickly.”
“It is a country that has become extremely dependent on these foreign reserves over the past two decades. [Withholding the reserves] all of a sudden has a catastrophic effect, ”she said.
“Everyone we’ve spoken to here in the past two weeks tells us they haven’t been paid for two to six months.”
Steiner said the challenge is to reallocate donor funds already earmarked for Afghanistan, where the Taliban, the de facto authorities, are unrecognized.
“Discussions over the past few weeks have focused on how we find a way to be able to mobilize these resources given the current economic implosion and the repeated commitment of the international community not to abandon the people. afghan, ”he said. .
Kanni Wignaraja, director of the UNDP regional office for the Asia-Pacific region, said money would be provided to Afghans employed in public works programs, such as drought and flood control programs, and subsidies granted to micro-enterprises.
A temporary basic income will be paid to vulnerable Afghans, she said.
“The effort here is to try to ensure that it’s the local currency that continues to drive the local economy. And in doing so, it also prevents the macroeconomy from collapsing completely, ”she said.
“Yes, the banking system is extremely fragile, it still has a little life left. “