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UN urgently needs cash in Afghanistan, but struggles for solution
The United Nations cannot get enough cash into Afghanistan to deliver humanitarian aid to millions of people on the brink of starvation and is struggling to develop options to help stabilize the collapsing economy, U.N. officials said.
Ultimately political solutions are needed, a senior U.N. official told Reuters on condition of anonymity, an apparent reference to sanctions relief and for governments and institutions to free up billions of dollars of Afghan assets held overseas.
In the meantime U.N. agencies are scrambling to find ways to get large amounts of U.S. dollars into Afghanistan to combat a liquidity crisis that has taken hold since the Islamic Emirate of Afghanistan (IEA) ousted the Western-backed government in August.
The U.N. official shared with Reuters some of the options being suggested.
The delivery of U.S. dollars to Afghanistan has stopped since the IEA seized power and if countries or international financial institutions don’t step up then the United Nations might have to fill the gap, said the official.
One suggested option is using Afghanistan International Bank, which could bring in and store money, but there are issues with insurance, the U.N. official said.
The United Nations is also aware that no one option will work and several avenues to get enough cash into Afghanistan are needed, the official said.
U.N. Secretary-General Antonio Guterres has called for the International Monetary Fund to agree on waivers or mechanisms to get money into Afghanistan. The IMF has blocked the IEA from accessing some $440 million in new emergency reserves.
Much of the Afghan central bank’s $10 billion in overseas assets have been frozen as well, most of it in the United States. The U.S. Treasury has said there are no plans to release the money.
“We need to work together to make the economy breathe again and to help people survive,” Guterres said on Wednesday. “Injecting liquidity into the Afghan economy can be done without violating international laws or compromising principles.”
The United Nations has repeatedly warned that Afghanistan’s economy is on the brink of collapse and would likely further fuel a refugee crisis.
When asked about U.N. efforts to get cash into Afghanistan, Mary-Ellen McGroarty, head of the World Food Programme in Afghanistan, told reporters on Tuesday: “The U.N. collective is looking at what potential solutions we could have, but flying in money to the country is not on the table yet.”
“What we are using at the moment is the limited liquidity that is in the country,” she said. “But the longer this goes on … we’re finding it’s becoming more and more difficult.”
Some 8.7 million people are “one step away from starvation,” said McGroarty, adding: “There is a tsunami of destitution, incredible suffering and hunger spiraling out of control.”
The IEA is facing growing international pressure for an inclusive and representative Afghan government and to uphold human rights, particularly those of women and girls in return for international recognition and freeing up aid and reserves.
Donors and institutions are also seeking to avoid running afoul of U.N. and unilateral sanctions on the IEA.
The United Nations is appealing for countries “to provide humanitarian financial exemptions to allow funds to reach aid organizations in the country,” said U.N. spokesman Stephane Dujarric, without naming names.
U.N. agencies and aid groups are currently using informal money-moving networks – known as hawalas – and small amounts of cash in banks to pay staff salaries and for other smaller scale purchases, Dujarric told Reuters.
“These modalities are not sufficient for the large scale operations requiring cash payments or cash assistance in-country, however,” said Dujarric, adding that the United Nations was talking to international financial institutions to find a solution that would expand aid operations.
A key part of U.N. plans to inject money into Afghanistan is by providing cash directly to poor Afghan families.
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Afghanistan exports 10 containers of batteries to Saudi Arabia and UAE for first time
The Office of the Governor of Herat announced on Tuesday that for the first time, a shipment of ten containers of batteries, of various sizes, manufactured at the local industrial park, has been exported to Saudi Arabia and the United Arab Emirates.
According to a statement, the batteries were dispatched in the presence of the Deputy Minister of Industry and Trade, local officials, and industrialists.
The Deputy Minister of Industry and Trade stated that over the past four years, significant progress has been made in the industrial sector, and with the establishment of the Islamic Emirate, conditions for investment in domestic production have been created.
The Herat local administration welcomed this initiative, describing the export of domestic products as an important step in strengthening the local and national economy. It assured that providing full support to industrialists, offering necessary facilities, and creating a suitable environment for the development of production and exports remain top priorities for the administration.
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Power project signed to electrify 47,000 homes in Jawzjan
According to MoEW, the project will be funded through revenues from Afghanistan’s mines and will provide electricity to around 47,000 families.
The Ministry of Energy and Water (MoEW) on Tuesday signed a major power supply project worth over 1.8 billion afghanis with domestic firm State Corps to provide electricity to Qush Tepa and Darzab districts in northern Jawzjan province.
The contract signing ceremony, held at the Government Information and Media Centre, was attended by Deputy Prime Minister for Economic Affairs Mullah Abdul Ghani Baradar and senior government officials.
Mawlawi Abdul Rahman Rahmani, Director General of Renewable Energy at MoEW, said the $28.4 million project (equivalent to 1.886 billion afghanis) aims to ensure nearly all households in Qush Tepa and Darzab have access to electricity.
He explained that the project involves constructing an 85.4-kilometre transmission line from Shiberghan, the provincial capital, building substations, and establishing electricity distribution networks in both districts.
Alauddin Salim, representing State Corps, described the initiative as “crucial” and said it is expected to be completed within three years. He highlighted that domestic firms, like State Corps, are more committed than foreign companies to project delivery.
According to MoEW, the project will be funded through revenues from Afghanistan’s mines and will provide electricity to around 47,000 families. The ministry urged the company to ensure timely completion with high quality standards.
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Pakistani cleric condemns lifetime immunity for Army Chief as un-Islamic
Prominent Pakistani religious scholar Mufti Taqi Usmani has strongly criticised moves to grant lifetime immunity to Pakistan’s Army Chief, General Asim Munir, describing such protection from judicial accountability as contrary to Islamic principles.
Speaking at a public gathering on Monday, Mufti Usmani said that Islam does not place any individual above the law, stressing that rulers, military leaders and ordinary citizens are equally accountable for their actions. He emphasised that justice and accountability form the foundation of an Islamic system, and that permanent immunity for powerful figures violates the spirit of Sharia.
The cleric warned that creating legal distinctions between state officials and the general public undermines public trust and fosters injustice within society. He urged state institutions to adhere to Islamic values when making political and military decisions, particularly those affecting governance and accountability.
Mufti Usmani’s remarks come amid growing debate in Pakistan over the role of the military in state affairs and the expanding authority granted to senior army officials. The issue has drawn heightened public and political attention in recent weeks, with critics arguing that excessive protections weaken democratic institutions and the rule of law.
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