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SIGAR reports a large percentage of US aid is being diverted to the IEA
The US Inspector General for the Reconstruction of Afghanistan (SIGAR) John Sopko said Tuesday the Islamic Emirate is diverting or otherwise benefitting from a considerable amount of U.S. assistance.
Testifying at a hearing before the Committee on Foreign Affairs US House of Representatives, Sopko shared how US funds have been provided to or diverted by the Islamic Emirate of Afghanistan (IEA) since the collapse of the former government in August 2021.
He said: “SIGAR has found that Taliban (IEA) officials routinely pressure US partners to hire Taliban allies, insist that US partners contract with Taliban-affiliated companies, dictate which Afghans should receive US aid, demand payoffs from US partners before a project can begin, divert US food aid to Taliban soldiers, and tax recipients of aid once it is delivered.
“This interference in and diversion of US assistance is worrying and presents multiple risks,” Sopko said.
He stated however, “over the last 12 years, SIGAR documented extensive diversion of US assistance by the prior Karzai and Ghani regimes. Similarly, experts have noted that diversion and interference are common among other autocratic regimes the US government has sought to bypass to get aid directly to vulnerable populations. Nevertheless, the diversion of humanitarian assistance by the Taliban (IEA) is of particular concern given the humanitarian crisis the populace face as well as the Taliban’s terrorist ties.”
“Unlike with the prior Afghan governments, diverted funds now may fund terrorist activities in addition to enriching the pockets of corrupt officials,” he said.
Meanwhile in his opening speech to the House, at the same hearing, Michael McCaul, Chairman of the House Foreign Affairs Committee, criticized the Biden administration for its policies on Afghanistan and said there had been no plans in place to support the Afghan people nor to secure enduring peace post withdrawal.
He called the IEA “terrorists” who “oppress” the Afghan people, adding that “they steal humanitarian aid from starving Afghans.”
He also criticized the IEA for the edicts against women and girls.
“What troubles me is that the Biden administration is pursuing a policy of engagement at all costs and has failed to hold the Taliban (IEA) to account for their crimes.
“The Biden administration meet with the Taliban (IEA) frequently, praise the Taliban often, and haphazardly send billions of tax-payers dollars to Afghanistan.
“Through these policies the Biden administration has all but recognized the Taliban as the legitimate government of Afghanistan.
He also claimed the IEA had equipped the Tehreek-e-Taliban Pakistan (TTP) with weapons left behind by the US, and that the TTP is “increasingly conducting terrorist attacks while al-Qaeda remains”safely in Afghanistan under Taliban (IEA) protection.”
However, the Islamic Emirate rejected Sopko’s statements that the IEA is either benefiting or diverting US aid and said the claims were baseless.
“America and Western countries do not cooperate with and help the Islamic Emirate, and regarding the [special] inspector general of the United States of America for the reconstruction of Afghanistan that you mentioned, neither does it have any official office in Afghanistan, nor does it coordinate with the officials of the Islamic Emirate, so neither their statements nor their claims have any validity,” said Bilal Karimi, the IEA’s Deputy Spokesman.
The Islamic Emirate also rejected McCaul’s statements on the the IEA having close ties with terrorist groups including the TTP and al-Qaeda and said officials do not have any documents nor evidence to prove their statements, and that the claims were merely propaganda.
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UN official warns Afghanistan’s humanitarian crisis could threaten regional stability and security
A senior United Nations official has warned that Afghanistan’s deepening humanitarian crisis could have consequences beyond the country’s borders, potentially affecting regional security, stability and migration routes.
Bruno Lemarquis, the UN Deputy Special Representative of the Secretary-General for Afghanistan and Resident and Humanitarian Coordinator, said on Friday that the country was at a “difficult crossroad” more than five years after the Islamic Emirate returned to power.
He said relative stability and security were being undermined by a fragile economy, restrictions on fundamental rights and growing humanitarian needs.
Lemarquis described restrictions on women and girls as “severe and sweeping,” saying they continue to face barriers to education, employment and participation in public life.
He noted that more than 2.6 million girls have been deprived of secondary education since 2021, while female university enrollment currently stands at zero.
The UN official also highlighted the impact of the mass return of Afghan migrants, saying approximately 6.7 million Afghans have returned to the country since 2020, many of them forcibly expelled from neighbouring countries, particularly Pakistan and Iran.
He said the large-scale returns were placing additional pressure on Afghanistan’s already overstretched public services, stressing that returnees urgently need legal documentation, protection and employment opportunities.
Lemarquis also raised concerns over a reported increase in opium poppy cultivation, citing a UN report that found production had risen by 330 percent in 2025 following a sharp decline after the 2022 ban imposed by the Islamic Emirate.
He said efforts to prevent poppy cultivation must be accompanied by viable alternative livelihoods for farmers.
Meanwhile, humanitarian needs in Afghanistan are expected to rise further in 2027 amid mass returns, regional instability and extreme weather risks associated with El Niño.
However, international humanitarian funding has continued to decline. According to Lemarquis, assistance reached $2 billion in 2023, fell to $1 billion in 2025 and has amounted to only $570 million so far in 2026.
He warned that funding shortages were threatening essential services, with around 40 percent of primary healthcare facilities expected to close between 2025 and 2026, potentially affecting 700 of the country’s 1,900 health posts.
Describing the consequences as “very, very, very significant,” Lemarquis urged the international community not to turn its back on Afghanistan.
“And there is a saying in Afghanistan that is ‘What is happening in Afghanistan is not staying in Afghanistan,’” he said.
“The consequences could go beyond the Afghanistan border, potentially affecting regional security, regional stability and migration pathways.”
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Pakistan reviews US plan to deport Afghans through its territory
Pakistan’s Foreign Ministry says it is reviewing reports that the Trump administration plans to deport Afghans through Pakistan, adding that it is consulting relevant stakeholders to find a mutually acceptable way forward.
Foreign Ministry spokesperson Sajjad Haider Khan made the remarks at a press conference on Friday, saying Islamabad remained committed to close coordination with its allies and partners.
“We will continue to act in accordance with our international obligations and established protocols,” Khan said.
He added that the matter was under consideration and that all relevant aspects were being carefully examined in consultation with concerned stakeholders.
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Pakistan’s Bank Alfalah exits Afghanistan after 20 years
Pakistan-based Bank Alfalah has completed its exit from Afghanistan after 20 years of operations, transferring its local banking business to Ghaznfar Bank, the lender said in a notice to shareholders on Friday.
The bank said the transaction was completed on November 5 after the signing of final agreements, approval from the State Bank of Pakistan and Da Afghanistan Bank, and fulfilment of other required conditions.
The deal allows Bank Alfalah to sell and transfer its operations in Afghanistan to Ghaznfar Bank, following approval from the regulatory authorities in both countries.
“Bank Alfalah has accordingly ceased its banking operations in Afghanistan and will complete the closure of its Afghanistan branches in accordance with applicable regulatory requirements,” the notice said.
Bank Alfalah began operating in Kabul in 2005, offering both conventional and Islamic banking services.
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