IMF suspends engagement with Afghanistan

The International Monetary Fund (IMF) said that its engagement with Afghanistan will remain suspended until there is clarity within the international community on the recognition of the government led by the Taliban, Report informs referring to the Business Standard.

The IMF said it was deeply concerned with economic conditions in Afghanistan, urging the international community to take urgent steps to stall a ‘looming humanitarian crisis’ in the country.

“Our engagement with Afghanistan has been suspended until there is clarity within the international community on the recognition of the government,” IMF spokesperson Gerry Rice told reporters at a news conference on Sept. 16.

“We’re guided by the international community in terms of the recognition of the government in Afghanistan, and we don’t have that. So, the IMF program there has been put on hold; and, again, as we said last month, the country cannot access IMF resources, SDRs, and so on, at this point,” he said.

Rice, however, noted that the IMF stands ready to work with the international community to advocate for urgent actions to stall a looming humanitarian crisis.

“The IMF is deeply concerned with the difficult economic situation in Afghanistan and the humanitarian situation in Afghanistan. We have said the immediate focus should indeed be on that humanitarian situation, aid to help the Afghanistan people, and allowing the flow of remittances and small-scale transfers; and providing assistance to countries hosting Afghan refugees,” he said.