Afghanistan Under Taliban Reeling Under Severe Debt Crisis

War-torn Afghanistan is witnessing an economic crisis and is under huge debt since the Taliban took control of the country as now it owes Tajikistan USD 28 million for electricity.

Da Afghanistan Breshna Sherkat (DABS) of Afghanistan owes Tajikistan USD 28 million for electricity, said Mohammad Omar Asuzada, the head of the national electricity company of Tajikistan, Barqi Tojik.

In a press conference held on August 1, the Tajik energy official said that transferring money from the DABS company to Barqi Tojik became quite challenging after the banks responsible for purchasing electricity encountered sanctions, Khaama Press reported.

“We have received USD 2 million in cash”, however, the outstanding balance remains at USD 28 million to be paid by DABS,” Asuzada said.

The Afghan company, DABS, “is working on the matter,” he further added.

Tajikistan provided Afghanistan with more than 734 million kWh of electricity during the first half of the year, Khaama Press reported citing a Barqi Tojik senior official.

Due to the destruction of Afghan transmission lines in recent years, Afghanistan occasionally experienced interruptions in the provision of electricity, however, comes as according to a statement from the Uzbek Energy Ministry, Afghanistan has paid off its substantial debt to Uzbekistan for electric power imports.

Since the Taliban took control of Afghanistan in mid-August, many electricity supply projects in the country have been halted and several have shut down as well. The main reason for halting these projects is the suspension of funds from the Asian Development Bank, the World Bank and the United States development aid to Afghanistan.

Due to four decades of conflict, severe drought, and pandemics, Afghanistan’s economy was already collapsing.

After the Taliban seized power following the hasty withdrawal of US soldiers, the international community froze Afghanistan’s assets and withheld help.

Moreover, women work, and especially female breadwinners, have struggled to make ends meet since the Taliban took control. Female employees in government offices are currently housed in the majority of cases. (ANI)