AFGHANISTAN’S OPIUM BAN COST FARMERS $1.3 BILLION: WORLD BANK

Wed 08 May 2024:

The ban on opium cultivation precipitated a staggering $1.3 billion loss in farmers’ incomes, equivalent to approximately 8 percent of the country’s GDP, the World Bank said in a new report.

The bank said that over the past two fiscal years, the real GDP of Afghanistan contracted by 26 percent, and the country’s economic outlook remains uncertain, with the threat of stagnation looming large until at least 2025.

According to the report, structural deficiencies in the private sector and waning international support for essential services are anticipated to impede any semblance of economic progress.

Half of Afghanistan’s population lives in poverty and 15 million people face food insecurity, it noted.

“Afghanistan’s long-term growth prospects depend on a significant shift from its previous reliance on consumption-driven growth and international aid to a more resilient, private sector-led economy that capitalizes on the country’s strengths,” said Melinda Good, World Bank Country Director for Afghanistan.

“For a sustainable future, Afghanistan needs to address harmful gender policies, invest in health and education, and focus on the comparative advantages it has in the agricultural and extractive sectors.”

The World Bank pointed out that the increase in Afghanistan’s trade deficit is another challenge for the country’s economy. According to the bank’s report, in 2023, Afghanistan’s imports increased by 23% and reached $7.8 billion.

SOURCE: INDEPENDENT PRESS AND NEWS AGENCIES

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