A United Nations report has highlighted a deepening economic crisis in Afghanistan under the Afghan Taliban regime, warning that investor confidence has sharply declined amid mounting financial instability.
According to details, Afghanistan’s economy is said to be nearing collapse, with concerns that the regime’s priorities remain focused on supporting militant networks rather than stabilizing economic structures.
The latest assessment by the United Nations Development Programme (UNDP) noted that extremist policies pursued by the Taliban administration have frightened investors, triggering a significant drop in investment activity. The report challenges the regime’s claims of economic stability and investment growth, describing them as unrealistic in the prevailing environment.
It further states that hardline governance policies have eroded financial transparency. The report estimates that nearly five billion dollars annually are being moved through illegal hawala and hundi channels, reflecting the scale of the undocumented economy.
Additionally, Afghanistan’s banking sector remains severely constrained. Due to weak financial policies and institutional breakdown, only about six percent of the population currently holds a bank account, underscoring limited access to formal banking services.
International experts cited in the report stressed that no economy could sustain itself on the backing of militancy. They urged the Taliban authorities to abandon support for militant groups and instead prioritize urgent economic reforms to prevent further deterioration of Afghanistan’s financial system.
