Possible Afghan refugee crisis could cost Pak $500 mn annually, says IMF

IMF has said that a possible refugee crisis in Afghanistan is likely to increase the burden of Pakistan and other countries and Islamabad will have to bear a burden of 500 million dollars annually

The International Monetary Fund (IMF) has said that a possible refugee crisis in Afghanistan is likely to increase the burden of refugees on Pakistan and other countries and Islamabad will have to bear a burden of 500 million dollars annually, reported local media.

Pakistan will have to bear additional costs of 500 million dollars annually, according to the IMF, which based its projection on the possibility that around one million Afghans may leave Afghanistan for neighbouring nations including Iran and Tajikistan, reported Samaa TV.

Tajikistan will also have to bear 100 million dollars and Iran 300 million dollars annually.

The IMF in its regional economic outlook update on Tuesday said that with non-humanitarian aid halted and foreign assets largely frozen after the Taliban seized power in August, Afghanistan's aid-reliant economy "faces severe fiscal and balance-of-payments crises".

It also said that Afghanistan's economy is set to contract up to 30 per cent this year and it is likely to further fuel a refugee crisis that will impact neighbours, Turkey and Europe.

Underlining that turmoil in Afghanistan was expected to generate important economic and security spillovers to the region, the IMF emphasised that the current situation's impact could also be seen beyond the region, according to Khaama Press.