Editor in Chief: Moh. Reza Huwaida Tuesday, July 7th, 2020

Kabul Bank ‘Bail Out’

There are different economic problems that Afghanistan is facing even after billion dollars of aid and assistance from international community. Though the entire amount has not been and can not be utilized for the economic sector alone, the amount that had to go to the sector has hardly made a satisfactory difference. The country has been going through different financial and banking problems.

The central banking system has been a victim of incapability and corruption. It went through a severe crisis because of the unchecked and unrecovered loans taken by the influential personalities of the political elite.

The bank at the moment is in need of a support of almost $ 73 million from International Monetary Fund (IMF). Though an amount of $ 22 million has been approved by the parliament the remaining $ 51 million dollar still needs to be approved, but the MP's have rejected to approve it, demanding that the culprits behind the earlier crisis in Kabul Bank should be put behind the bars.

IMF has also mentioned that there would not be further support for the bank unless the issues regarding the crisis in the bank are dealt properly.

Minister of Finance Hazrat Omar Zakhilwal has warned that the country can face severe crisis if the parliament does not approve the amount. He has mentioned, "If this money is not approved, IMF will not aid Afghanistan and in two to three months, the country will face a cash crunch."

These concerns are definitely serious and can turn into nightmare if not dealt properly. Afghanistan has been depending on foreign aid and support for much of its central banking system and financial activities, if that does not reach on time, it is difficult for the country to make for the deficiencies on its own.

For the short term solution it is necessary that the MP's should reconsider their decision, but that would not be a reliable and lasting solution, as the country can not keep on depending on the foreign aid and loans for indefinite period of time and the country can not afford to be the victim of the corrupt actions of the political elite who fill their own pockets with the aid and loan money and do not take actions for better monetary and banking policies.

Therefore, just measures should be carried out and it should be made sure the people involved in corruption should be made accountable to the law and order system and must be punished accordingly; and above all, no one should be considered above law.