White House Warns of Deepening Economic Collapse in Afghanistan

Referring to the widespread humanitarian crisis in Afghanistan, the White House, in a message to US Congress warned about a deepening economic collapse in Afghanistan.

This message stated that the humanitarian crisis in Afghanistan under the control of the Taliban is a posing serious threat to the national security of the US.

Biden informed that the Executive Order of February 11, 2022, must continue in effect beyond February 14.

“The widespread humanitarian crisis in Afghanistan — including the urgent needs of the people of Afghanistan for food security, livelihoods support, water, sanitation, health, hygiene, shelter, and settlement assistance, among other basic human needs — and the potential for a deepening economic collapse in Afghanistan continue to pose an unusual and extraordinary threat to the national security and foreign policy of the United State," said Biden in his message.

Following the takeover of power in Afghanistan by the Taliban, more than USD 9 billion of Afghan assets were frozen in European and American banks, of which seven billion dollars are kept in American banks.

On November 21, 2022, the United States established a trust fund in Switzerland to protect this asset and transferred USD 3.5 billion of Afghanistan's foreign exchange reserves to this fund.

The establishment of this fund aims to enhance financial and monetary stability amidst the extensive economic crisis in Afghanistan.

The White House emphasised on the significance of safeguarding Afghanistan's foreign exchange reserves within the financial institutions of the United States, as a crucial step in addressing the national emergency and ensuring the well-being of the Afghan people.

Following the collapse of the previous government in Afghanistan, US is the largest provider of humanitarian aid to Afghanistan. The US government said that it has provided Afghanistan more than USD 2 billion in these two years.