Afghanistan's central government in 'critical' financial crisis

KABUL, Afghanistan, Sept. 17 (UPI) -- Afghanistan's central government is in "critical" financial crisis, according to a senior Afghan Fiance Ministry official.

The government needs an infusion of $537 million from international donors in the next "five or six days" to meet its expenses.

Alhaj M. Aqa, the ministry's director general of the treasury, said that while funds were available to cover the government's September payroll for more than 500,000 national and provincial employees, it may not be able to meet October's payroll obligations.

"They are asking me when I need it, and I told them this week or we will have a problem," he said of his discussions with U.S. and other international donors.

The U.S. Embassy in Kabul confirmed that it is engaging in discussions with Afghan officials regarding the financial crisis. According to a statement issued by the embassy, it is "working to find ways to help the new government meet some of its challenges and priorities using resources already allocated."

Approximately 65 percent of the Afghan government's $7.6 billion operating budget is funded through international assistance.

Aqa said the shortfall occurred because of the nearly year-long presidential election, runoff and vote audit that negatively impacted foreign investment and resulted in a 25 percent drop in domestic revenue collection from taxes and customs tariffs.