World Bank pauses Financial Aid To Taliban-run Afghanistan

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• Aug 25, 2021 | moderator

Washington: The World Bank has temporarily suspended all its financial aids to Taliban-run Afghanistan on Wednesday, said sources. In a statement, World Bank spokesperson announced that all disbursements in its Afghanistan operations have been frozen, and the situation is being closely assessed and monitored by them. It stated that the body was deeply concerned about the ongoing situation and the prospects for women in Afghanistan. Since 2002, World Bank is said to have provided $5.3 billion to Afghanistan. Right now, it has more than two dozen development projects ongoing in the country.

The International Monetary Fund (IMF) has also snapped financial aid to Afghanistan after the World Bank. The IMF has suspended the loan program of $370 million and a $340 million Financial Aid that Kabul was due to receive from the Special Drawing Rights (SDR). Afghanistan assets worth more than $9 billion held by American banks had also been seized by the United Nations.

Ever since the Taliban declared the country, Afghanistan, as an Islamic Emirate, almost every nation has frozen economic transactions with Afghanistan. The US has been the first country to cut the Taliban's access to billions of dollars of funds. Germany had previously announced that it would stop all the monetary aid to Afghanistan if Sharia Law was introduced, whereas the country used to provide 430 million euros to Afghanistan annually.

In an attempt at the country’s failing economy, the Taliban has appointed an acting head of Afghanistan's central bank to control the situation. Nearly ten days into the Taliban takeover, the country has been witnessing severe pressure on the nation's economy. Now the Taliban is trying to hire senior officials and technical experts to revive the economy of the country, reports.