A World Bank report said that 92% of the Afghan population has insufficient food because of inadequate income.
Income-generating opportunities for the self-employed and casual workers weakened during adverse winter weather that set back agriculture, construction, and related activities,” the report said.
In Afghanistan, “consumer price inflation declined from double digit rates in July 2022 to 1.9 percent, year-on-year, in March 2023,” the report said.
“The economic outlook in Afghanistan has stabilized on returning aid flows; output growth is expected to turn positive in the next two years,” the report added.
The Ministry of Economy said the suspension of international development aid as well as climate change has had a negative impact on the Afghan economy.
“The suspension of international development aid, climate change and drought has had a negative impact on economic growth in the country,” said Abdul Rahman Habib, a spokesman for the Ministry of Economy (MoE).
Economists said that poverty has increased due to the high rate of unemployment in the country.
“To make the UN assistance more effective, there is a need for the humanitarian assistance and food assistance to be turned into economic aid. The economic aid can be beneficial in the alleviation of poverty,” said Sayed Masoud, an economist.
Meanwhile, the Afghanistan Chamber of Industry and Mines (ACIM) said that there is a need for investment in mine extraction, agriculture and infrastructure projects in the country.
“There are good opportunities in the country. From the extraction of mines to the industrial sector as well as water management and agriculture in Afghanistan–this can help reduce poverty,” said Sakhi Ahmad Paiman, deputy of ACIM.
According to the World Bank, humanitarian needs across fragile low-income countries (Afghanistan, Somalia, South Sudan, Sudan) are severe, “with substantial risks of further deterioration in extreme poverty and food security.”
Source : ToloNews