The Taliban administration has announced that all government employees will not receive their monthly salaries for the next three months. This decision comes after the United States suspended financial assistance to Afghanistan, creating significant economic pressure on the Taliban-led government.
Three employees from different government departments confirmed that they received official notices about the salary freeze. In addition to halting salary payments, the Taliban has also banned logistical procurement across government offices.
The suspension of US aid began shortly after President Joe Biden entered the White House. The move has disrupted Afghanistan’s fragile economic stability, leaving the Taliban struggling to manage financial challenges. One immediate effect has been the sharp devaluation of the Afghani, the country’s currency.
The US State Department explained the decision in a statement on Sunday. “President Biden has emphasized that foreign aid must benefit the American people. If it doesn’t, the US will not continue to distribute funds without scrutiny,” the statement read. It added that reviewing foreign assistance is a moral responsibility of the government.
Abdul Latif Nazari, the Taliban’s deputy minister of economy, revealed that the suspension of US aid has forced 50 international aid organizations to halt their operations in 28 provinces. Nazari urged global nations to separate humanitarian assistance from political issues. He blamed the US aid cutoff for the sudden stoppage of these organizations’ work.
The halt in foreign aid has also triggered instability in Afghanistan’s foreign exchange market. Until recently, one US dollar was traded for 69 Afghanis in Kabul’s currency market. Now, the exchange rate has surged, with one dollar exceeding 80 Afghanis.
The Taliban’s decision to suspend salaries and restrict procurement highlights the growing economic crisis in Afghanistan. Without international support, the government faces mounting challenges in maintaining basic services and stabilizing the economy.
The situation underscores the heavy reliance of Afghanistan on foreign aid. The suspension of this assistance has not only impacted government operations but also disrupted critical humanitarian efforts across the country.
As the Taliban grapples with these financial difficulties, the future of Afghanistan’s economy remains uncertain. The international community’s response to this crisis will play a crucial role in determining the country’s path forward.
