Afghanistan - August 27, 2024

The United States should return the frozen overseas assets and lift sanctions against Afghanistan so that the war-torn country can get hands on its post-war reconstruction, said a deputy spokesman from the Afghan caretaker government on Tuesday.

As Friday marked the third anniversary of the withdrawal of U.S.-led forces from Afghanistan, the country is still grappling with economic uncertainty characterized by a decline in real GDP over the past two years due to limited foreign investment, as the Taliban returned to power three years ago.

Hamdullah Fitrat, said that the U.S. should end its illegal sanctions on Afghanistan and return the Afghan central bank's overseas assets that have been illegally frozen, so that Afghanistan can use them for post-war reconstruction.

According to a UN report on January this year titled “Two Years in Review: Changes in Afghan Economy, Households and Cross Cutting Sectors”, the "Afghan economy has not recovered from the significant shrinkage experienced since 2020, and appears to be stabilizing at a very low level of economic activity with high poverty and unemployment levels."

The report indicates that the main reasons for this situation include restrictions on the banking sector, disruptions in trade, the weakening and isolation of public institutions, and other related factors.

The deputy spokesman also said that the interim Afghan government is currently strengthening its forces to combat terrorism and maintain domestic security and stability. At the same time, the interim government welcomes foreign investment in various sectors.

Since the withdrawal of troops, the U.S. has imposed sanctions on Afghanistan, freezing billions of dollars in overseas assets of the Afghan central bank, which has directly led to a shortage of foreign exchange in the country.

Additionally, through long-arm jurisdiction, the U.S. has imposed sanction risks on foreign companies intending to invest in Afghanistan, preventing them from entering the market. This has significantly hindered the country's reconstruction efforts.

A report released by the World Bank in April this year noted that since 2021, Afghanistan's weak infrastructure and singular economic structure have not improved. Issues such as a lack of funds and severe brain drain have deprived Afghanistan of the self-sustaining capacity necessary for its development, leading to ongoing economic decline.

Shotlist:
Afghanistan - Aug 27, 2024:
FILE: Kabul, Afghanistan - Oct 6, 2021
1. Traffic;
2. Various of vendors, pedestrians;
Afghanistan - Aug 27, 2024
3. SOUNDBITE (Pashto) Hamdullah Fitrat, deputy spokesperson, Afghan caretaker government:
"I hope they can stop the sanctions and resolve the issues through dialogue. The assets of Afghanistan have been cruelly and illegally frozen. These frozen funds should be left for the Afghan people to use for infrastructure development in this country emerging from war.";
Afghanistan - Recent
4. Cityscape;
5. Various of vendors, consumers at market;
Afghanistan - Aug 27, 2024
6. SOUNDBITE (Pashto) Hamdullah Fitrat, deputy spokesperson, Afghan caretaker government:
"Implementing sanctions and restrictions affects Afghanistan's public economic conditions. From a humanitarian perspective, this is illogical. Political pressure for strategic purposes causes widespread suffering among the Afghan population.";
FILE: Kabul, Afghanistan - Sept 27, 2021
7. Traffic, pedestrians;
FILE: Kabul, Afghanistan - 2021
8. Cityscape.

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