Shock To Afghan Economy: Taliban Stops Payment To Govt Employees & Supply Procurement
Following the suspension of US aid, the Taliban administration has informed all government employees that the payment of their monthly salaries has been suspended for three months.
This is the latest move by the Taliban to curb the pressure instigated after the cut off of US aid to Afghanistan.
Three employees of various government departments of the Taliban have informed Afghanistan International that the authorities have officially informed them that their salaries will not be paid in the next three months.
The Taliban has also banned logistical procurement.
Immediately after entering the White House, US President Donald Trump suspended all foreign aid, including sending money to Afghanistan, for three months.
The suspension of US aid has disrupted Afghanistan's relative economic stability, leaving the Taliban confused in the face of financial challenges, including a sharp devaluation of the Afghani.
The US State Department said on Sunday that the US government should focus more on its national interests.
"President Trump has made it clear that if foreign aid does not benefit the American people, the country will no longer blindly distribute money," the department's statement said. "Reviewing foreign aid is a moral duty of the government."
Abdul Latif Nazari, the Taliban's deputy minister of economy, said that following the suspension of US aid to Afghanistan, the activities of 50 international aid organisations in 28 provinces of the country have been suspended. Abdul Latif Nazari called on the countries of the world to separate humanitarian aid from political issues.
He said that the reason for the halt of the work of these organisations was the suspension of aid from the United States of America.
The suspension of US aid has caused volatility in Afghanistan's foreign exchange market.
Until recently, one dollar was traded at 69 afghanis in the Kabul foreign exchange market, but now one dollar has crossed the 80 afghani mark.
