Kabul/New York (Web Desk): The United Nations Development Programme (UNDP) has released a revealing report on Afghanistan's economic situation, highlighting the severe economic crisis, declining investment, and instability in the financial system under the Taliban government.
According to the report, the uncertain political environment and the Taliban regime's specific policies have crippled the country's economy.
The UNDP states that stringent decisions and restrictions on human rights, particularly the education and employment of women, have frightened global investors.
The alleged support for terrorist groups and security concerns have led to a significant decrease in foreign direct investment (FDI), resulting in the loss of employment opportunities.
Afghanistan's financial infrastructure is on the brink of collapse. The report reveals that only 6% of the country's population has access to banking services, meaning 94% of the population is excluded from the formal financial system.
Due to the closure of banking channels and a lack of trust, the hawala business is thriving.
Approximately $5 billion is being transferred annually through illegal methods, increasing the risks of money laundering and funding terrorism.