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IEA opposes establishment of new fund to handle frozen assets
Afghanistan’s central bank, Da Afghanistan Bank (DAB), has slammed Washington’s decision to create a new international financing mechanism to distribute $3.5 billion worth of Afghanistan’s frozen assets, claiming the move was “unacceptable”.
On Wednesday, the US State Department announced that Washington, in coordination with international partners including the Government of Switzerland and Afghan economic experts, has established the Afghan Fund, which will see the money transferred to a Swiss bank.
On Thursday, DAB issued a statement asking for the decision to be reconsidered.
“Da Afghanistan Bank has measured any decision regarding the allocation, use or transfer of these reserves to achieve unrelated goals as unacceptable and requested [the US] to be reconsider it,” the statement said.
“Da Afghanistan Bank’s foreign exchange reserves are the property of the Afghan people and have been used for many years in the light of the law to maintain monetary stability, strengthen the financial system and facilitate trade with the world.
In a press briefing on Wednesday night, State Department spokesman Ned Price said: “Today, the Department of State and the Department of the Treasury, in coordination with international partners including the Government of Switzerland and Afghan economic experts, announced the establishment of a fund to benefit the people of Afghanistan.”
“This fund will protect and preserve the Afghan central bank reserves, while making targeted disbursements to help stabilize Afghanistan’s economy and, ultimately, support its people and work to alleviate the worst effects of the humanitarian crisis,” he said.
He stated the Islamic Emirate of Afghanistan (IEA) is “not a part of this financing mechanism and resources disbursed will be for the benefit of the Afghan people, with clear safeguards and auditing in place to protect against diversion or misuse.”
He said however that the Afghan Fund is “explicitly not intended to make humanitarian disbursements. The Afghan Fund itself is to facilitate macroeconomic stability inside Afghanistan.”
“This is not what that fund is for. This fund is to provide macroeconomic stability in Afghanistan that will enhance the effectiveness of humanitarian assistance from the United States and other donors.”
Former president of Afghanistan, Hamid Karzai, also disagreed with the decision and said any move to transfer the money to a third country was unacceptable and the assets should remain the “national treasure of the people” of Afghanistan.
Some experts however believe that by transferring the money to a fund of this nature is opening the way for wastage and the Afghan people will ultimately pay the price.
“From my point of view, the decision of the US government is very cruel to the Afghan national bank and Afghans should not be treated this way,” said Taj Mohammad Talash, an economic analyst.
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IEA should respond to Pakistan’s security concerns with concrete actions: Andrabi
Pakistani Foreign Ministry spokesman Tahir Hussain Andrabi says both Pakistan’s Prime Minister Shehbaz Sharif and Sadyr Japarov, the President of Kyrgyzstan, who visited Islamabad on Thursday, expressed their mutual commitment to a peaceful, stable Afghanistan with a sustainable future for the Afghan people.
Speaking in a press conference on Friday, Andrabi stated that both sides agreed that the Islamic Emirate must fulfill its obligations toward the international community and take concrete steps against terrorist groups to address Pakistan’s legitimate security concerns.
This comes while the Islamic Emirate of Afghanistan has repeatedly emphasized that no terrorist groups operate from Afghan territory and that it will not allow anyone to use Afghan soil against any country.
The Islamic Emirate has also stated that Pakistan’s security concerns are an internal issue of that country, and Pakistan itself must take measures to prevent any security incidents.
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Malaysia’s PM calls peaceful solution to Afghanistan-Pakistan tensions
Malaysian Prime Minister Datuk Seri Anwar Ibrahim has voiced deep concern over escalating tensions between the Afghanistan–Pakistan during a telephone conversation with Pakistan’s Prime Minister Shehbaz Sharif.
In a statement posted on Facebook, Anwar said he emphasized Malaysia’s concerns regarding regional stability and urged all parties to pursue a peaceful resolution through dialogue and diplomatic engagement to prevent further escalation.
His remarks follow media reports indicating heightened tensions between Afghanistan and Pakistan after a series of attacks in October.
During the call, the two leaders also exchanged views on several aspects of Malaysia–Pakistan bilateral relations.
Anwar also briefed Sharif on the ongoing flood situation in Malaysia and similar challenges facing neighboring countries, including Indonesia and Thailand.
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Afghanistan makes major strides in cutting drug trafficking, says Putin
Putin stated that Afghan authorities have “substantially reduced” opium cultivation and are “seriously confronting” drug-related threats from within their borders.
Russian President Vladimir Putin says Afghanistan has taken “active and effective” steps to curb drug trafficking, noting a significant drop in opium production across the country. He made the remarks during an exclusive interview with India Today during his India trip, highlighting what he described as “visible progress” in Afghanistan’s internal security efforts.
Putin stated that Afghan authorities have “substantially reduced” opium cultivation and are “seriously confronting” drug-related threats from within their borders. He added that Afghanistan has also made important advancements in the fight against terrorism.
Responding to a question about why Russia officially recognized the Islamic Emirate, the Russian president said Afghanistan had been engulfed in civil conflict for many years, but the current authorities now hold control over the country. “This is the reality, and it must be acknowledged,” Putin emphasized.
He further noted that maintaining contact with Afghanistan’s leadership is crucial for shaping events inside the country. “If you want influence, you must engage with the people in charge — and that is exactly what we are doing,” he said.
Putin’s remarks come as several regional powers continue to recalibrate their diplomatic strategies toward Afghanistan, focusing on stability, counterterrorism, and economic cooperation.
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