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IEA opposes establishment of new fund to handle frozen assets

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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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Afghanistan expresses condolences after deadly helicopter crash in Qatar

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The Ministry of Foreign Affairs of Afghanistan has expressed condolences to the governments and people of Qatar and Turkey following a deadly helicopter crash in Qatar.

In a statement, the ministry described the incident as tragic and extended its deep sympathy to the families of those who lost their lives.

According to reports, the helicopter crashed into Qatari territorial waters, killing seven people. Authorities have said the incident was caused by a technical malfunction.

Afghanistan’s Foreign Ministry also prayed for the victims and wished patience and strength for their families.

 
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Pakistan seeks Russian mediation to resolve Afghanistan tensions

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Pakistan’s ambassador to Russia, Faisal Niaz Tirmizi, has confirmed that Islamabad has asked Moscow to mediate in the ongoing conflict with Afghanistan.

In an interview with Russian daily Izvestia, Tirmizi said Pakistan is engaging with Russia and appreciates the “wonderful offer” to help resolve tensions. He noted that proposals from Russia, China, Qatar, Turkey, and Saudi Arabia led to an agreement on a temporary ceasefire.

“We tell all our interlocutors: please tell the Taliban (IEA) not to use this opportunity simply to regroup, recuperate, rearm, and re-attack,” Tirmizi said. “Because such large states as Russia or Pakistan cannot be destabilized by terrorist acts.”

The ambassador emphasized that decades of war in Afghanistan have affected not only Kabul and Islamabad but also neighboring countries, including Iran, Tajikistan, Turkmenistan, Uzbekistan, and even Russia. “Therefore, we must all trade with each other, develop education, art, and culture. Terrorism is the wrong way to go,” he added.

The appeal for mediation comes amid rising cross-Durand Line tensions and violence that have killed hundreds and displaced thousands in recent weeks.

Pakistani officials have repeatedly claimed that militant attacks in the country are organized in Afghanistan.

The IEA however denies the claim saying that Afghanistan is not responsible for Pakistan’s “security failure.”

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World must re-engage to prevent all-out Afghanistan-Pakistan war: Financial Times

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In an opinion article published on Sunday, Financial Times warned that rising tensions between Afghanistan and Pakistan risk spiraling into a wider conflict, and urged the international community to urgently re-engage with the troubled region.

The publication noted that nearly five years after the Islamic Emirate’s return to power, global attention has largely faded, despite growing instability. It highlighted restrictions on women’s rights and the worsening relationship between Kabul and Islamabad, once close allies.

According to the article, Pakistan’s ties with the IEA have sharply deteriorated since 2021. Islamabad accuses Afghan authorities of harboring militant groups responsible for attacks inside Pakistan—an allegation the IEA denies.

Recent weeks have seen a surge in violence, including cross-Durand Line airstrikes and clashes that have reportedly killed over 1,000 people and displaced more than 100,000. One of the deadliest incidents involved an airstrike on a drug rehabilitation center in Kabul, which Afghan officials say killed hundreds.

The newspaper warned that continued escalation could destabilize South and Central Asia and risk turning Afghanistan into a hub for militant activity once again.

It criticized Pakistan’s military approach, saying airstrikes alone cannot end insurgencies, and called for sustained ceasefire efforts following a temporary truce during Eid al-Fitr.

The editorial urged major powers, including the United States and China, to play a more active diplomatic role. It also pointed to China’s strategic interests in the region and suggested Beijing could step forward as a mediator.

Despite past failed attempts at peace, the Financial Times stressed that the risks are too high for the world to remain disengaged.

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