OREANDA-NEWS. The International Monetary Fund (IMF) predicts the collapse of the Afghan economy. The country's gross domestic product could contract sharply by 30% after the Taliban seize power, CNBC reported.

The IMF reports that non-humanitarian aid has been discontinued in Afghanistan and foreign assets have been frozen. After the Taliban came to power, the country's banks faced a shortage of cash. The IMF report says that such a situation could lead to a reduction in production by 20-30%.

At the same time, the head of the IMF's Middle East and Central Asia Department, Jihad Azur, said that the situation in the country was deteriorating due to the coronavirus and droughts even before the Taliban seized power in Kabul.

As noted by the IMF, problems in the country will lead to a drop in living standards - millions of people may find themselves in poverty, which will lead to a humanitarian crisis. In addition, the growing number of Afghan refugees can put pressure on the labor market in host countries and create social tensions. For this reason, the IMF stressed the need for assistance from the international community. Azur said the focus should be on education and health care.

Earlier in October, European Commission President Ursula von der Leyen said the EU would provide Afghanistan with an expanded support package worth some one billion euros. The package includes € 300 million in humanitarian aid. At least 250 million euros will go to finance health care and safety improvements.