United Nations Development Agency says Afghanistan is Nearing “Universal Poverty”

The United Nations said in a recent study that Afghanistan’s poverty rate may soar to 97 percent by mid-2022 if its political and economic crises are not addressed soon.

The United Nations Development Programme (UNDP) reported that the poverty rate, which is currently at 72 percent, may drastically evolve to “universal poverty” as a result of the Taliban’s upheaval.

“The post-August 15 power shift in Afghanistan has resulted in severe economic instability across multiple channels in a climate of heightened uncertainty,” the report said.

Afghanistan’s banking systems are seeing a reserve shock with the United States freezing assets of the Central Bank of Afghanistan, including reserves worth $9 billion.

Reserve aids from the International Monetary Fund worth $450 million are inaccessible to Afghanistan since the U.S. had also shut dollar liquidity access to the Afghan central bank.

The report added that people in Afghanistan are still not able to return to work, noting that the Taliban has not yet issued to reopen the economy.

“Half of the population is already in need of humanitarian support. This analysis suggests that we are on course for rapid, catastrophic deterioration in the lives of Afghanistan’s most vulnerable people,” said Kanni Wignaraja, the UN assistant secretary-general.

UNDP forecasted that if Afghanistan remains connected with the rest of the world, the least bad scenario for 2022 is a poverty increase of around 7 to 15 percent instead of 25 percent.

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