Categories: Afghanistan

Afghanistan’s economy not dependent on foreign aid, says deputy minister Nazari

KABUL (Ariana News): Deputy Minister of Economy Abdul Latif Nazari responded to a report published by the U.S. Special Inspector General for Afghanistan Reconstruction (SIGAR), stating that Afghanistan’s economy is not reliant on foreign aid to the extent that it would collapse if such aid were cut off.

“Afghanistan’s economy is not dependent on foreign aid to the extent that it would collapse if such aid were suspended. However, we believe that humanitarian aid should not be politicized or influenced by shifting power dynamics and political agendas,” said Nazari.

These remarks come after SIGAR, in its latest report to the U.S. Congress, stated that Afghanistan’s monetary stability and the operations of its Da Afghanistan Bank, the country’s central bank, are entirely reliant on cash assistance in U.S. dollars facilitated by the United Nations.

SIGAR warned that without this cash assistance, Afghanistan’s economy would face serious challenges.

SIGAR also expressed concern over the reduction in aid to Afghanistan. According to the report, the U.S. has allocated only about $342 million in humanitarian assistance to Afghanistan for the 2025 fiscal year, while this amount exceeded $968 million in 2023.

Earlier, SIGAR had reported that since 2021, the U.S. has provided over $3.83 billion in assistance to Afghanistan. The agency warns that a sharp decrease in aid—at a time when Afghanistan’s internal needs are growing—has had significant effects on the livelihoods of the Afghan people.

The Frontier Post

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