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IEA opposes establishment of new fund to handle frozen assets

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(Last Updated On: September 15, 2022)

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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Uzbekistan’s humanitarian aid arrives in Balkh

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(Last Updated On: April 25, 2024)

A shipment of humanitarian aid from Uzbekistan was handed over on Thursday to the local officials of Balkh province in the trade port of Hairatan.

Local authorities said the aid, which includes flour, oil, wheat, sugar and meat, has been handed over by Uzbekistan’s Surkhandarya governor to the governor of Balkh.

The governor of Surkhandarya stated the purpose of sending this aid was to support the people of Afghanistan and stressed the need for the development of good relations between the two countries.

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Afghanistan’s problems caused more damage to Pakistan than 3 wars with India: Durrani

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(Last Updated On: April 25, 2024)

Islamabad’s special envoy for Afghanistan Asif Durrani said on Wednesday that Pakistan has suffered more due to Afghanistan’s internal situation than Pakistan has suffered in three wars with India in terms of blood spilt and finances drained.

Durrani said at a one-day International Conference titled “Pakistan in the Emerging Geopolitical Landscape”, which was organized by the Institute of Strategic Studies Islamabad (ISSI) and the German Friedrich Ebert Stiftung (FES), that over 80,000 Pakistanis died in the two decades of the War on Terror and that his country was still counting its dead and injured.

“After the withdrawal of NATO forces, it was hoped that peace in Afghanistan would bring peace to the region. However, such expectations were short-lived,” he said.

He also stated that attacks by the Tehreek-e-Taliban Pakistan (TTP) militant group on Pakistan’s border areas increased by 65 percent, while suicide attacks increased by 500 percent.

“The TTP’s enhanced attacks on Pakistan while using Afghan soil have been a serious concern for Pakistan. Another worrying aspect is the participation of Afghan nationals in these attacks,” he said.

Durrani also said Pakistan had suffered geopolitically since the Soviet Union invaded the neighboring country.

“The post-9/11 world order has negatively impacted Pakistan. Apart from losing 80,000 citizens’ lives, including 8,000 law enforcement agency personnel, the country’s economic opportunity cost is estimated at $150 billion,” Durrani said.

Talking about the future outlook for Pakistan in the regional context, Durrani said that while “our eastern neighbor is likely to continue with its anti-Pakistan pursuits, the western border poses an avoidable irritant in the short to medium term.”

However, he said Pakistan can overcome its difficulties with Afghanistan, including the TTP challenge.

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Afghanistan now a ‘nexus for diplomatic endeavors’, says IEA

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(Last Updated On: April 25, 2024)

In the wake of dozens of meetings between high-ranking Islamic Emirate officials and visiting officials from foreign countries, and other diplomatic advances, the IEA said on Thursday that in the current geopolitical landscape, Kabul now “serves as a nexus for diplomatic endeavors and political deliberations pertaining to global affairs”.

In a series of posts on X, the IEA’s spokesman Zabihullah Mujahid said diplomatic missions and political delegations from various nations, including Russia, Malaysia, Kazakhstan, Turkmenistan, the European Union, and others, “are evident in the capital, highlighting its strategic importance in fostering Islamic cooperation”.

He said: “Recently, the honorable Minister of Transport of the Islamic Emirate, Mr. Hamidullah Akhundzada, led a significant delegation to Termez, Uzbekistan, for essential discussions aimed at enhancing bilateral relations.

“These discussions encompass a wide range of topics, from trade facilitation to security assurances, indicating a focused effort by the Islamic Emirate to strengthen and broaden its international engagements, thereby ensuring sustained development and stability.

“These initiatives, characterized by diligence and effectiveness, underscore Afghanistan’s enduring commitment to diplomatic engagement and its pivotal role in regional and global affairs,” he said.

Mujahid added that these initiatives “also emphasize the vital connection between diplomatic efforts and economic prosperity, promising favorable outcomes for Afghanistan’s socio-economic landscape.”

He pointed out that despite ongoing challenges, Afghanistan “remains steadfast in its pursuit of prosperity and resilience, defying pessimistic projections and charting a course towards political and economic renewal.”

He said: “Continued efforts are essential to fostering inclusive growth and impactful initiatives, thus advancing Afghanistan’s journey towards sustainable development and increased influence on the global stage.”

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