NEW YORK: A report by the United Nations has urged for actions and reforms to stabilise the Afghan banking system as the financial system is on the brink of collapse.
After the Taliban regime took over, many countries withdrew the development support, consequently disturbing the economic conditions of the country and adding pressure on the banking system.
“Afghanistan’s financial and bank payment systems are in disarray. The bank-run problem must be resolved quickly to improve Afghanistan’s limited production capacity and prevent the banking system from collapsing,” said the report.
Talking to Reuters, the UNDP head in Afghanistan, Abdallah al Dardari said they needed to think of solutions that supported the banking sector rather than supporting the Taliban.
“We need to find a way to make sure that if we support the banking sector, we are not supporting Taliban,” said the UNDP head.
He further added that out-of-box thinking was required, and all possible solutions should be discussed as the situation in the last three months has changed completely.
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