This report describes the current situation and challenges in combatting COVID-19; then presents the results of select simulations; first; regarding the likely impact of COVID-19 on GDP due to disruptions in regional and global trade flows; second, options to finance the immediate needs in the health sector; third; the budgetary implications of income support and civil work programs. This is followed by some policy recommendations and how UNDP can and plans to assist the Government to overcome the adverse effects of the pandemic and beyond that set Afghanistan in a pathway to sustainable and equitable development.