The Taliban, on Wednesday, said that they would declare an inclusive government within the next two days. Taliban’s political office leader Sher Mohammad Abbas Stanikzai told local media that the Islamic Emirate would declare within the next two days an inclusive government. The new government will inherit a country that is teetering on the brink of economic collapse after more than two weeks after the Islamist militia seized control. Sources told AFP the Cabinet could be presented after morning prayers on Friday, while Ahmadullah Muttaqi, a Taliban official, said on social media a ceremony was being prepared at the presidential palace in Kabul. The private broadcaster Tolo said an announcement was imminent. The movement’s supreme leader Haibatullah Akhundzada is expected to have ultimate power over a new governing council, with a president below him, Taliban officials have said. The Taliban enforced a radical form of Shariah law, from 1996 until 2001, when they were ousted by US-led forces, but have promised a softer brand of rule since their return. However, the US, the EU and others have cast doubt on such assurances, saying formal recognition of the new government — and any economic aid that would follow — will depend on the Taliban’s actions in power. The legitimacy of the government in the eyes of international donors and investors will be crucial for the economy as the country battles drought and the ravages of a 20-year conflict that killed an estimated 240,000 Afghans. Humanitarian organizations have warned of impending catastrophe and the economy — reliant for years on many milions of dollars of foreign aid — is close to collapse, Reuters reported. The economy is expected to sink by 9.7% this financial year and 5.2% next year, Fitch said in a report. Foreign investment would be needed to support a more optimistic outlook, a scenario that assumed "some major economies, namely China and potentially Russia, would accept the Taliban as the legitimate government". Meanwhile, Taliban forces and fighters loyal to local leader Ahmad Massoud fought in Afghanistan"s Panjshir Valley on Thursday, more than two weeks after the Islamist militia seized power. Panjshir is the last Afghan province resisting rule by the Taliban, whose overthrow of the Western-backed government as US and other foreign troops withdrew after 20 years has left the country in chaos. Each side said it had inflicted heavy casualties. "We started operations after negotiation with the local armed group failed," Taliban spokesman Zabihullah Mujahid said. Taliban fighters had entered Panjshir and taken control of some territory, he said. "They (the enemy) suffered heavy losses." A spokesman for the National Resistance Front of Afghanistan (NRFA) rebel grouping said it had full control of all passes and entrances and had driven back efforts to take Shotul district. "The enemy made multiple attempts to enter Shotul from Jabul-Saraj, and failed each time," he said, referring to a town in neighboring Parwan province. Since the Taliban swept into Kabul on Aug. 15, several thousand fighters from local militias and remnants of the government"s armed forces have massed in Panjshir under the leadership of Massoud, son of a former Mujahideen commander. They have been holding out in the steep valley where attacks from outside are difficult. Efforts to negotiate a settlement appear to have broken down, with each side blaming the other for the failure In Panjshir, the NRFA spokesman said its forces had killed large numbers of Taliban fighters on two fronts since clashes first broke out earlier in the week. "It has been proven to the other side that they cannot resolve this issue through war," the spokesman said. Both sides provided varying figures for the other"s casualties, without offering evidence. It was not possible to verify the numbers of fighters on either side killed. The Taliban say the Panjshir valley is surrounded on all four sides and a rebel victory is impossible. The rebels say they will refuse to surrender. — Agencies