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Afghan central bank board member asks Biden, IMF to release funds

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A senior board member of Afghanistan’s central bank is urging the US Treasury and the International Monetary Fund to take steps to provide the Taliban-led government limited access to the country’s reserves to avoid economic disaster.

The Taliban took over Afghanistan with astonishing speed, but it appears unlikely that they will get quick access to most of the roughly $10 billion in assets held by Da Afghanistan Bank (DAB), which are mostly outside of the country, Reuters reported.

US President Joe Biden’s administration has said any central bank assets the Afghan government have in the United States will not be made available to the Taliban, and the IMF has said the country will not have access to the lender’s resources.

Shah Mehrabi, an economics professor at Montgomery College in Maryland and a member of the bank’s board since 2002, told Reuters in a telephone interview on Wednesday that Afghanistan faces an “inevitable economic and humanitarian crisis” if its international reserves remain frozen.

Mehrabi stressed he does not speak for the Taliban but is making this push in his capacity as a sitting board member. He said he plans to meet with US lawmakers this week, and hopes to talk to US Treasury officials soon as well.

“If the international community wants to prevent an economic collapse, one way would be to allow Afghanistan to gain limited and monitored access to its reserves,” he told Reuters.

“Having no access will choke off the Afghan economy, and directly hurt the Afghan people, with families pushed further into poverty.”

Mehrabi is proposing that Washington allow the new government in Kabul a limited amount of access each month, perhaps in the range of $100m to $125m to start with, that would be monitored by an independent auditor.

“The Biden administration should negotiate with the Taliban over the money in the same way they negotiated over the evacuation,” he said.

If the assets remain entirely frozen, then inflation will continue to soar, Afghans will not be able to afford basic necessities, and the central bank will lose its main tools for conducting monetary policy, he said.

The Taliban can survive on customs duties, increasing opium production, or selling off captured American military gear, but everyday Afghans will suffer and be solely reliant on international aid if the country does not have access to currency, Mehrabi added.

After nearly 20 years of American intervention, the Afghan economy is heavily dollarised, and depends on imports that largely must be purchased with foreign currency, he said.

With overseas reserves off-limits, Da Afghanistan Bank may be undermined after having cultivated a non-political, technocratic institution that so far has been allowed to continue its work under the Taliban, Mehrabi said.

“Their work there is not based on who is in power,” he said, noting that he has not been personally in touch with Taliban representatives, but is in daily contact with colleagues running operations there now.

Ajmal Ahmady, who led the central bank until the capture of Kabul, has said about $7 billion of DAB’s assets was held as a mixture of cash, gold, bonds and other investments at the US Federal Reserve.

Most of the rest is in other international accounts and at the Bank for International Settlements, a bank for central banks based in Switzerland, and not physically in DAB vaults, he said – leaving about 0.2 percent or less of the total accessible to the Taliban.

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EU announces major funding to support Afghan small businesses

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The European Union says it is implementing hundreds of millions of euros in projects to support small and medium-sized enterprises (SMEs) in Afghanistan and help expand economic opportunities across the country.

Speaking to Ariana News, EU Chargé d’Affaires in Kabul, Veronika Boskovic Pohar, said the programs are aimed at creating jobs for skilled workers, women, youth, and returnees, while also strengthening the private sector. She added that alongside international support, Afghan authorities also have a role in facilitating economic growth.

According to Pohar, the EU is currently implementing projects worth €156 million focused on livelihoods, durable solutions, job creation, and women’s economic empowerment. She said an additional €40 million program specifically designed to support returnees will be launched in the near future.

She noted that the EU is gradually shifting its focus from emergency humanitarian aid toward long-term sustainable solutions, particularly for internally displaced people and returnees in Afghanistan.

Meanwhile, the United Nations, marking World Day of Small and Medium Enterprises, said SMEs account for more than 90 percent of businesses worldwide and play a critical role in employment and economic growth.

UN spokesperson Stéphane Dujarric stressed that stronger investment, innovation, and sustainable industrial development are essential to help businesses withstand economic challenges and build resilient economies.

Afghan private sector representatives and economic analysts say greater support for SMEs could help the country address economic challenges faster, increase employment, and promote sustainable long-term development.

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Afghan women’s situation highlighted at SCO Forum amid ongoing global debate

She urged member states of the SCO to show solidarity with Afghan women and not remain indifferent to their situation.

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Afghanistan was at the center of discussions at the Shanghai Cooperation Organization (SCO) Women’s Forum in Bishkek, where former head of the UN Assistance Mission in Afghanistan (UNAMA), Roza Otunbayeva, described the situation of women in the country as a serious human rights concern.

Speaking at the forum, Otunbayeva said restrictions imposed on women and girls in Afghanistan demonstrate how a return to conservative policies can rapidly affect women’s daily lives and opportunities.

Otunbayeva, who previously served as head of UNAMA in Afghanistan, stated: “Today in Afghanistan, girls cannot receive education beyond sixth grade. Women are prohibited from working, visiting parks and gyms, and traveling without a male companion.”

She urged member states of the SCO to show solidarity with Afghan women and not remain indifferent to their situation.

According to her, women in Afghanistan urgently need support in education, employment, and social participation, and these issues should be addressed at both regional and international levels.

Her remarks come at a time when the situation of women in Afghanistan remains a subject of ongoing international debate.

Meanwhile, the Islamic Emirate of Afghanistan has repeatedly stated that women’s rights in the country are ensured better than ever before.

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CSTO says Tajik-Afghan border security still ‘complicated’

The Islamic Emirate of Afghanistan has repeatedly stated that Afghan territory will not be used against any country.

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The Collective Security Treaty Organization (CSTO) says the security situation along the Tajik-Afghan border remains “complicated,” citing ongoing concerns over militant activity in northern Afghanistan.

Viktor Vasilyev, chairman of the CSTO Permanent Council, said this week that instability in Central Asia continues to stem from threats posed by militants operating near Afghanistan’s northern border region.

Speaking at a forum in St. Petersburg, Russia, Vasilyev said member states plan to intensify joint efforts to counter militant groups that, according to Tajik and Chinese authorities, have carried out attacks on Chinese-backed business interests and other sporadic cross-border incidents affecting Tajikistan. Afghanistan’s ruling authorities have expressed regret over such incidents, but he said the security situation remains fragile in remote border areas.

“Despite Russia’s and several Central Asian countries’ efforts to establish contacts with the current authorities in Kabul, the security situation remains complicated,” Vasilyev said, calling it the CSTO’s main concern in the region, according to the Russian state news agency TASS.

He added that the bloc plans to expand coordinated operations, including efforts to “neutralize militant and extremist groups” that he said continue to accumulate along Afghanistan’s northern borders. He also described reported shelling of Tajik territory from Afghanistan as a “particular concern.”

The CSTO, which includes Russia, Belarus, Kazakhstan, Kyrgyzstan, Tajikistan, and Armenia, has previously supported Tajikistan through military equipment and joint exercises aimed at strengthening border security along its 1,200-kilometer frontier with Afghanistan.

However, Armenia has suspended its participation in the alliance, citing dissatisfaction over CSTO inaction during past conflicts with Azerbaijan, and has instead pursued closer ties with Europe and the United States. The issue of Armenia’s status is expected to be discussed at the ongoing forum in St. Petersburg.

Vasilyev, a veteran Russian Foreign Ministry official, assumed the rotating CSTO chairmanship in January and is set to remain in the position until the end of 2026.

Meanwhile, the Islamic Emirate of Afghanistan has repeatedly stated that Afghan territory will not be used against any country and has assured that it will not allow any armed group to operate from Afghan soil against neighboring states.

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