Afghanistan’s fragile economy is on the brink of collapse, with nearly 90% of households struggling to meet basic needs amid rising hunger, debt, and displacement, according to a new report by the United Nations Development Programme (UNDP).
The UNDP revealed that since 2023, more than 4.5 million Afghans have returned from neighboring countries, mainly Iran and Pakistan—pushing the population up by 10%. This massive influx has deepened the nation’s humanitarian and economic crisis, already strained by earthquakes, floods, and droughts that have destroyed over 8,000 homes and overwhelmed essential services.
A nationwide survey of 48,000 households found that over half of returnees are skipping medical treatment just to afford food, while 45% rely on unsafe water sources such as open springs and unprotected wells. Debt has become a lifeline for many, with almost nine out of ten returning families owing between $373 and $900, an amount that far exceeds the country’s average monthly income of $100.
The education and labor sectors are also under severe strain. In areas with high numbers of returnees, a single teacher now handles 70 to 100 students, 30% of children are working, and unemployment among returnees stands at 95%. Average monthly earnings have dropped to 6,623 Afghanis ($99.76), while rents have tripled.
The UNDP has warned that without urgent international support, Afghanistan could face overlapping crises of poverty, exclusion, and mass migration. Donor funding has plummeted since 2021, covering only a small fraction of the $3.1 billion the UN requested for humanitarian aid this year.
Adding to the crisis, women are bearing the heaviest burden. Female participation in Afghanistan’s workforce has plunged to just 6%, one of the lowest rates globally. Restrictions imposed by the Taliban have left women-led households, which make up up to 26% of returnee families, at the highest risk of food insecurity and displacement.
Kanni Wignaraja, UN Assistant Secretary-General and UNDP Regional Director for Asia and the Pacific, emphasized:
“In some provinces, one in four households rely on women as the main breadwinner. When women are prevented from working, the entire nation suffers.”
The UNDP has urged the Taliban administration to increase investment in livelihoods and essential services while calling on international donors to lift restrictions on female aid workers, who play a vital role in reaching vulnerable communities.
“Excluding women from frontline aid delivery means denying critical support to those who need it most,” Wignaraja warned.
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