The UNDP reports that Afghanistan’s economy has essentially collapsed.

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United Nations

Kanni Wignaraja, the Director of UNDP’s Regional Bureau for Asia and the Pacific, recently visited Afghanistan and stated that 69% of the population is struggling to meet basic needs.

She also highlighted the devastating impact of natural disasters and the scarcity of water in many parts of the country, hindering development efforts.

The UNDP reports that since the Taliban takeover in 2021, the economy has shrunk by 27%, resulting in high unemployment and limited access to electricity for only 40% of the population.

The finance sector has been severely affected and there are few sources of economic activity, leaving small and medium enterprises and farmers as the main contributors to the struggling economy.

Wignaraja also expressed concern for the situation of women and girls, who face strict restrictions imposed by the Taliban on their dress code and employment opportunities.

While there are some sectors where women can work without restrictions, their employment in the public sector has decreased significantly.

The UNDP official also noted the challenges facing local economies and the lack of capital, specifically in the private sector.

Despite supporting microfinance initiatives, the lack of cash flow has hindered progress in spurring economic growth.

However, Wignaraja remains hopeful that recent funds from the World Bank for climate projects could encourage other investments in the country.

She also visited Herat province, which was hit by earthquakes last October, and observed the contrast between villages still living in tents and those starting to build permanent structures.

Wignaraja emphasized the importance of reviving household and local economies, as people do not want to live in tents and need to rebuild their livelihoods.

In conclusion, the UNDP official highlighted the agency’s support for women-owned and women-led businesses, which have a significant impact on employment and household incomes.

Despite limited resources, UNDP has reached a quarter of women across Afghanistan through various initiatives, and Wignaraja believes that their resilience and determination will help rebuild the country’s economy.

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