Since the Taliban took over Afghanistan on August 15, the country – already struggling with drought and severe poverty from decades of war – has seen its economy all but collapse. As per the UNHCR Report published in September 2021, the number of Afghans who fled from their homes to other parts of the country or abroad has reached 3.5 million, out of which around 340,000 have fled the country in two months. These facts highlight that millions of dollars have also been taken with these Afghans abroad; businesses are closed or affected, trade has reduced, daily market activities have diminished, and as a whole, the economy is on the verge of a breakdown.

On the other hand, most of the foreign aid that was supporting the Afghan economy has been cut off or suspended. Major donor organizations such as the World Bank, ADB, IMF, and many others have called off their operations in Afghanistan and have given up on supporting any activity in the country. Although humanitarian aid is an exception, it also needs proper planning, coordination, and logistics. The lack of commercial flights means the supplies need to be transported on special flights or by road. Additionally, the Taliban Government is not able to govern and handle the crisis well. Mismanagement of resources, lack of relevant experience, and the absence of NGOs and other organizations to assist have weakened the Government’s ability to cope with the crisis.

The brain drain over the past two months has created a vacuum of technical expertise needed to run government agencies and provide basic services to the people. Furthermore, the private sector has also reduced its activities due to the lack of demand and the dearth of political and physical assurance from the Taliban Government. Moreover, the banking sector has witnessed a major setback, forcing banks to limit weekly transactions by account holders to prevent the draining of wealth from the banks.

In light of these challenges, we have transitioned into a consultancy, enabling us to better adapt to the evolving circumstances. Alongside this change, we have updated our service catalog to align with the needs of our clients and the current context. These adjustments position us to provide strategic guidance and tailored support during this time of uncertainty.