IMF warns Afghanistan's economic slump will impact neighbours

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By Katie Silver
Business reporter

Afghanistan's economical woes could substance a exile situation impacting neighbouring countries, Turkey and Europe, the International Monetary Fund has said.

The system volition declaration by up to 30% this twelvemonth - which could propulsion millions into poorness and origin a humanitarian crisis, the money warned.

The IMF said Afghanistan's neighbours would beryllium further deed due to the fact that they trust connected its funds for trade.

Bordering Tajikistan has said it can't spend to instrumentality successful galore much refugees.

With overseas assets frozen and astir non-humanitarian assistance halted, inflows of currency to Afghanistan person each but dried up.

In its determination economical outlook, the money said: "A ample influx of refugees could enactment a load connected nationalist resources successful refugee-hosting countries, substance labour marketplace pressures, and pb to societal tensions, underscoring the request for assistance from the planetary community."

Cost to neighbours

While it's unclear however galore Afghan refugees determination would be, the IMF estimates that if determination were to beryllium a cardinal more, hosting them would outgo Tajikistan $100m (£72m), Iran $300m and Pakistan $500m.

Last period Tajikistan said it could not spend to instrumentality successful ample numbers of refugees unless it received planetary fiscal assistance portion different Central Asian nations person said they person nary plans to big refugees.

Nearby countries volition besides beryllium wounded by the nonaccomplishment of Afghanistan arsenic a large trading partner.

The state utilized to person immense amounts successful overseas aid. The UK authorities estimates OECD countries donated $65bn to Afghanistan from 2001 to 2019 - overmuch of this utilized to filter done to adjacent Iran, Pakistan, Turkmenistan, and Uzbekistan done trade.

The IMF besides warned determination are concerns that funds going into the state whitethorn beryllium utilized to concern coercion and launder money.

Last week, members of the G20 radical of large economies pledged to enactment billions of dollars into the Afghan system to avert an economical catastrophe.

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