Crisis in Afghanistan might have a serious impact on neighboring countries – IMF

The crisis in Afghanistan is likely to have a serious impact on neighboring countries, the International Monetary Fund said.

Photo: Reuters

Afghanistan's economy is expected to shrink by 30 percent by the end of the year. It pushes millions of people into poverty and a humanitarian crisis.

Financial aid to the country has been suspended, and assets in foreign banks have been frozen. Afghanistan used to borrow money from abroad on a regular basis. Between 2001 and 2019, OECD countries donated $65 billion to Afghanistan. The money has also benefited Iran, Pakistan, Turkmenistan and Uzbekistan through trade with Afghanistan.

Trade disruptions and the refugee crisis could also cause problems in neighboring countries, the report adds.