That apart, China is typically risk averse and with its economic slowdown, it will tread a more cautious path before opening its purse strings…reports Mahua Venkatesh
After Chinas much publicized promise to help Afghanistan with about $31 million in aid to rebuild the war torn country, it seems only a tiny fraction of the total amount has reached the Taliban led regime. TOlO News in a tweet said that China has provided $1 million to Afghanistan and has promised to provide $5 million more in humanitarian aid, especially medicine and food.
Just for better understanding, $1 million, if converted into Indian Rupee, amounts to a mere Rs 7.5 crore.
Former acting governor of Da Afghanistan Bank – the country’s central bank tweeted, “I often get asked whether China could replace the financial power of the US/EU/WB/IMF in Afghanistan…..I think this pledge clearly answers that question: $1M + $5M.”
Earlier India Narrative reported that the first tranche of aid reached the country only on September 30.
“China makes commitments but how much of those commitments actually flow is not analysed in details, It is impossible for China to rebuild Afghanistan..until the US or EU steps in, China alone will be an insignificant player,” the late Shakti Sinha, who was director, Atal Bihari Vajpayee Institute of Policy Research and International Studies told India Narrative in an exclusive interview.
That apart, China is typically risk averse and with its economic slowdown, it will tread a more cautious path before opening its purse strings.
While China has expressed its interest in extending its Belt and Road Initiative into Afghanistan, there is no blueprint of actual investments. “Will China invest? That is the big question. I believe it will not and even if it does, these are long term projects which take time to generate the desired results,” an analyst told India Narrative earlier.
According to the International Monetary Fund, Afghanistan’s economy could contract 30 per cent this year, resulting in a refugee crisis. The refugee crisis may impact its neighbouring countries, it said.
According to a Reuters report, with non-humanitarian aid halted and foreign assets largely frozen after the Taliban seized power in August, Afghanistan’s aid-reliant economy currently faces multiple challenges.
For a country, where grants have financed around 75 per cent of the public spending, choking of aid would lead to crumbling of the economy.
The US has frozen the $9.5 billion reserves that the country has in overseas accounts. Besides, flow of remittances has choked too.
(The content is being carried under an arrangement with indianarrative.com)