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Old 18th Aug 2021, 20:22
  #331 (permalink)  
ORAC
Ecce Homo! Loquitur...
 
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Now the Taliban’s problems begin. The had, or have, enough money to fund their operations as a group - but not pay the salaries of everyone employed to run the country.

Forgetting the loss of aid, they will also lose the money paid each month as salaries for the notional Afghan armed forces. Overall they will lose over fifty percent of their GDP. As an example, last year they’re current count deficit is around -75%.

It is suggested they can interest investment in raw resources such as copper and lithium, but there are two main drawbacks. Firstly any such investment requires massive growth and investment in infrastructure such as power and transport which isn’t forthcoming (China pumped in over $4B into a copper mine about a decade ago and didn’t get a single ton out), and neither Russia or China want a rich Islamic fundamentalist nation on their borders…

The USA, infamously, has been flying in C-17 loads of dollars every months to pay the government bills - that obviously is at an end…

https://www.theguardian.com/world/20...reign-reserves

https://tradingeconomics.com/afghanistan/exports

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