Business
Afghanistan’s Central Bank slates US plan for frozen funds
Afghanistan’s central bank on Saturday criticized Washington’s plan to use half the bank’s $7 billion in frozen assets soil for humanitarian aid and the rest to compensate victims of the 9/11 attacks.
Calls have continued to mount for the US to release the frozen assets in order stop the freefall of the Afghan economy and assist millions of Afghans who are facing a severe food shortage crisis.
Da Afghanistan Bank (DAB) criticized the decision, saying its assets had been invested in the United States in line with international practices, and belonged to the people of Afghanistan.
“DAB considers the latest decision of USA on blocking FX (foreign exchange) reserves and allocating them to irrelevant purposes, injustice to the people of Afghanistan,” the central bank said in a statement.
“(DAB) will never accept if the FX reserves of Afghanistan is paid under the name of compensation or humanitarian assistance to others and wants the reversal of the decision and release of all FX reserves of Afghanistan,” it added.
The central bank funds were frozen when the former government collapsed.
Pakistan meanwhile also reacted to the decision and in a statement issued late Saturday said “the utilization of Afghan funds should be the sovereign decision of Afghanistan”.
“Over the past several months, Pakistan has been consistently emphasizing the need for international community to quickly act to address the unfolding humanitarian catastrophe in Afghanistan and to help revive the Afghan economy, as the two are inextricably linked.
“Pakistan’s principled position on the frozen Afghan foreign bank reserves remains that these are owned by the Afghan nation and these should be released. The utilization of Afghan funds should be the sovereign decision of Afghanistan,” read the statement issued by Pakistan’s Foreign Ministry.
Pakistan’s kinno exports remain far below potential as regional tensions, high freight costs and weak government support continue to choke the citrus trade.
Despite being a leading global citrus producer, Pakistan is expected to export just 400,000–450,000 tonnes of kinno in the 2025–26 season, compared with an estimated capacity of 700,000–800,000 tonnes.
Exports in 2024–25 stood at around 350,000–400,000 tonnes, mainly to Russia, the UAE, Saudi Arabia, Afghanistan, Indonesia and Central Asia. While better fruit quality this season has raised hopes, persistent crossing disruptions—especially with Afghanistan—and transport bottlenecks have offset gains.
Growers say prices have collapsed sharply, forcing panic sales. Rates for large kinno have fallen from over Rs120 per kg early in the season to as low as Rs75, while smaller fruit is selling for Rs35–40 per kg amid weak demand.
Industry leaders warn the crisis is crippling processing units and jobs. More than 100 factories reportedly failed to open this season, with dozens more shutting down as exports stall. Cold storages in Sargodha are nearly full, putting fruit worth millions of dollars at risk of spoilage, while growers fear losses of up to Rs10 billion.
Exporters are urging the government to urgently resolve issues, subsidise logistics, and help access alternative markets, warning that prolonged inaction could devastate farmers, workers and the wider economy.
Iranian President Masoud Pezeshkian has said that Tehran will facilitate trade and economic exchanges with Afghanistan, including easing procedures at customs and local marketplaces.
He made the remarks during a televised interview following his visit to South Khorasan province, which shares a border with Afghanistan.
Pezeshkian, in a separate event addressing local business leaders, highlighted the province’s strategic advantages, citing its rich mineral resources, proximity to neighboring countries such as Afghanistan and Pakistan, and access to the ocean via the Chabahar port. He described the region as “a golden opportunity not found everywhere,” emphasizing its potential for economic growth and cross-border commerce.
A Kazakh delegation led by the Deputy Minister of Finance of Kazakhstan met with Sediqullah Khalid, First Deputy Governor of Da Afghanistan Bank, to discuss ways of strengthening banking and economic cooperation between the two countries.
According to a statement issued by Da Afghanistan Bank, Khalid said the central bank is keen to establish regular and effective banking relations with Kazakhstan as part of broader efforts to expand bilateral trade.
He noted that enhanced banking cooperation would help facilitate trade, investment, and wider economic interaction between Afghanistan and Kazakhstan, while also contributing to financial stability at the regional level.
Members of the Kazakh delegation also emphasized the importance of developing banking and economic ties and expressed their readiness to expand joint cooperation.
The two sides further agreed to establish technical committees from both countries to hold expert-level discussions and advance practical steps for cooperation.
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