G20 leaders to discuss Afghanistan funding as UN warns of economic collapse

Group of 20 (G20) leaders and ministers will discuss a international funding to Afghanistan amid warnings by the United Nations (UN) that the war-scarred country’s economy was on the brink of a collapse.

The virtual G20 Extraordinary Leaders’ Summit on Afghanistan has been called in wake of the United States‘ withdrawal from Afghanistan.

Following the Taliban takeover of Afghanistan in mid August, the US has frozen funds held overseas for the country. Afghanistan was 75%-dependent on foreign aid before the Taliban takeover.

Speaking to reporters in New York on Monday, UN Secretary General, António Guterres, said the Afghanistan was at a make-or-break moment and the international community must find ways to inject liquidity to the save country’s economy from a collapse. “If we do not act and help Afghans weather this storm, and do it soon, not only they but all the world will pay a heavy price,” he said.

Explained: How division among Taliban groups impacts Afghanistan

Guterres warned that more and more Afghans will be fleeing their homes in search of a better life.

He said the cash could be injected via UN trust funds, and other instruments. Guterres said he was particularly alarmed to see the Taliban reneging on its promises made to Afghan women and girls.

The European Union (EU) announced an additional 700 million euros ($809.2 million) in emergency aid to Afghanistan and its neighbouring countries. The EU has already pledged €300m for basic services in Afghanistan.

US says talks with Taliban in Qatar were ‘candid and professional’

“We must do all we can to avert a major humanitarian and socio-economic collapse in Afghanistan,” European Commission President Ursula von der Leyen said in a statement ahead of Tuesday’s G20 Afghan summit.

For long-term aid, the Taliban must first meet the EU’s five conditions, she added. Russia and China oppose the policy of conditional aid to Taliban. Russia has invited Pakistan, India and Iran to an Afghanistan conference it is holding in Moscow on October 20.