Half of factories in Afghanistan stopped functioning

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The Afghan media outlet also stated that some owners of the factories also voiced their concerns over the lack of electricity to run their operations….reports Asian Lite News

Around half of the factories in Afghanistan have halted their operations due to the financial crisis that gripped the country after the Taliban regime was established in August last year, local media reported on Thursday.

Tolo News citing the Chamber of Industry and Mines reported that these factories stopped working due to banking problems and the lack of raw materials as well as the drop in market demand.

“Due to less demands in markets, banking problems, and electricity problems, 40-50 percent of activities have been stopped,” said Mohammad Karim Azimi, an official at the Chamber of Industry and Mines on Wednesday.

The Afghan media outlet also stated that some owners of the factories also voiced their concerns over the lack of electricity to run their operations.

Afghanistan for its electricity needs mostly relies on the Central Asian countries.

Recently, Uzbekistan has reduced electricity to Afghanistan and the country’s officials said that the drop is triggered by the technical problem that had arisen at the Marjan power station, Ariana News reported citing a statement by Da Afghanistan Breshna Sherkat (DABS).

As Afghanistan is going through a drastic humanitarian crisis, many development and construction projects have been halted.

Meanwhile, Taliban has passed the first annual budget for “next fiscal year 1401” without foreign aids amidst concerns over the brewing humanitarian crisis in the strife-torn country after the US withdrawal.

Khaama Press reported that the Islamic Emirate of Afghanistan in a meeting on Tuesday assessed the budget of the last quarter of the current year and discussed changes in the period of a fiscal year.

UN seeks support for Afghanistan central bank

The United Nations’ Secretary-General Antonio Guterres on Thursday called on the international community to quickly provide assistance to the central bank of Afghanistan and do more to inject liquidity in the country’s economy to avoid a collapse in 2022.

“The function of Afghanistan’s central bank must be preserved and assisted, and a path identified for conditional release of Afghan foreign currency reserves,” Sputnik quoted Guterres statement.

“We must do even more to rapidly inject liquidity into the economy and avoid a meltdown that would lead to poverty, hunger and destitution for millions,” Guterres added.

Following the Taliban takeover in mid-August, the US froze nearly 10 billion dollars in Afghanistan’s assets and slapped sanctions on the Islamic Emirate.

In the meantime, the stoppage of foreign aids to Afghanistan has crippled the already fragile economic system of Afghanistan and has adversely affected the lives of millions of people. (ANI)

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