Afghan economy could shrink 30 per cent or more in coming months: IMF

The Afghan economy that is already going from bad to worse since the Taliban's takeover of Kabul, could shrink by 30 per cent or more in the coming months warned International Monetary Fund (IMF).

As per a report published in Asia Times, since the Taliban has overthrown the democratically elected government in Afghanistan, the financial condition of the country is continuously moving towards a total economic collapse.

Afghanistan is teetering towards what the UN warns could be a catastrophic famine situation, Asia Times reported citing reports from the IMF.

The economic instability could be traced from the time when the western forces decided to pull-out troops from the country.

Most of the international forums including the IMF, World Bank, EU, US stopped their aids and assistance to Afghanistan with the onset of the Taliban's regime in Kabul.

The move came as the international community did not want their funds to fall into the hands of a regime that has thus far "taken few if any practical steps to eliminate transnational jihadi networks in its midst", the report said.

Besides the aid refusals, the US also froze Afghanistan's worth USD 9.5 billion held in US banks and financial institutions.

Though several international communities and countries have extended a hand of help Afghanistan, the severity of the economic collapse triggered by the Taliban's takeover is unlikely to pass, Asia Times reported.

In October, the United Nations had also said that Afghanistan's economy is imploding, with all but three per cent of households expected to fall below the poverty line in coming months.

Prior to that, UN chief Antonio Guterres had also urged the world to take action during a "make or break" moment for the country.

"If we do not act and help Afghans weather this storm, and do it soon, not only they but all the world will pay a heavy price," Guterres told journalists in New York.

( With inputs from ANI )