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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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Iran eyes Afghanistan as key economic opportunity amid sanctions
Araghchi said dedicated systems and procedures should be developed for health tourism to make it easier for eligible Afghan visitors to enter Iran.
Iranian Foreign Minister Abbas Araghchi has described neighboring countries, including Afghanistan, as a major economic opportunity for Iran as the country continues to face international sanctions.
Speaking at a meeting with tourism and handicrafts investors in Razavi Khorasan province, Araghchi said neighboring states represent Iran’s “greatest opportunity” for expanding foreign policy and economic cooperation.
He highlighted the potential for health tourism between Iran and Afghanistan, saying the Foreign Ministry faces no obstacle to issuing visas to Afghan nationals and is ready to facilitate the process for genuine applicants, particularly those seeking medical treatment.
Araghchi said dedicated systems and procedures should be developed for health tourism to make it easier for eligible Afghan visitors to enter Iran, adding that the Foreign Ministry is prepared to cooperate with relevant authorities.
He also called for greater powers for provincial governments to address economic and cross-border issues, saying Iran’s president supports strengthening local decision-making to resolve problems more quickly.
Referring to Iran’s experience with “provincial diplomacy,” Araghchi said many issues with neighboring countries, particularly those involving border regions, could be addressed more efficiently through local authorities.
He cited the Iran-Afghanistan border as an example, saying a problem between Razavi Khorasan and Afghanistan could potentially be resolved more quickly through officials on both sides rather than being referred to Tehran and Kabul for negotiations.
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Pakistan allows 724 humanitarian aid trucks into Afghanistan via Torkham
The security tensions have contributed to repeated clashes and the continued closure of the crossing to regular commercial activity.
Pakistan has allowed 724 truckloads of humanitarian aid to enter Afghanistan through the Torkham crossing, providing a vital lifeline to vulnerable families amid a prolonged closure and worsening humanitarian needs.
Mohamed Yahya, the UN Resident and Humanitarian Coordinator in Pakistan, said the 724 trucks carrying humanitarian supplies had crossed into Afghanistan and reached families most in need.
“Deeply grateful to the Government of Pakistan and all those who made it possible to keep the humanitarian lifeline open. Together, we delivered,” Yahya said in a post on X.
Pakistan has kept its crossings with Afghanistan closed to regular trade since October 2025 following deadly clashes and escalating security tensions. The closure also disrupted the movement of Afghan transit goods through Karachi.
The prolonged shutdown, combined with insecurity and worsening economic conditions, has displaced tens of thousands of Afghans. The United Nations and other humanitarian agencies have continued efforts to deliver life-saving food and other assistance to displaced and vulnerable families.
Pakistan’s Deputy Prime Minister and Foreign Minister Ishaq Dar welcomed the humanitarian operation, saying he was “glad to have facilitated this important humanitarian effort by the United Nations” and to have ensured assistance for people in need in Afghanistan.
The latest aid delivery comes amid continued tensions between Pakistan and Afghanistan following ongoing militant attacks inside Pakistan. Islamabad has repeatedly accused Afghanistan of allowing Tehreek-e-Taliban Pakistan (TTP) and other militant groups to operate from its territory, allegations denied by Kabul.
The security tensions have contributed to repeated clashes and the continued closure of the crossing to regular commercial activity.
Despite the broader tensions, Pakistan has continued to facilitate the movement of humanitarian assistance. Earlier last month, authorities allowed 21 of 26 vehicles carrying World Food Programme aid to cross into Afghanistan through Torkham.
The passage of 724 relief trucks represents a significant humanitarian corridor, allowing international agencies to deliver essential assistance to vulnerable Afghan families despite the prolonged suspension of normal trade and continuing security tensions between the two countries.
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Afghanistan’s economy has seen significant growth over the past five years: IEA
Officials of the Islamic Emirate say Afghanistan has made progress in various economic sectors over the past five years, with trade, exports, mining and infrastructure projects expanding despite political challenges and the closure of some trade routes.
According to information provided by officials, the value of the Afghan afghani has remained stable against foreign currencies and has strengthened against some currencies. They also point to the launch of major infrastructure projects, increased domestic production and expanded mining activities.
Zabihullah Mujahid, spokesperson for the Islamic Emirate, said significant work has been carried out over the past five years in mining, electricity generation, agriculture, transport and regional connectivity. He said work is also underway on regional projects such as TAPI, TAP and CASA-1000.
He said: “It is true that the TAPI project is currently underway on Afghan soil and, God willing, it will be completed up to Herat in 2026. But two other phases remain, in Helmand and Kandahar, after which it will connect to Balochistan in Pakistan. The region needs these projects, and they should not be politicized.”
Officials say Afghanistan’s exports have doubled during this period, while hundreds of thousands of jobs have been created in mining and public infrastructure projects. Increased national revenues, funding the national budget through domestic revenues, rebuilding major highways and improving transit facilities are among the other achievements the government highlights from the past five years.
According to figures from the Ministry of Industry and Commerce, Afghanistan’s total trade reached $13.932 billion last year. Of this, $1.807 billion was exports and $12.125 billion was imports.
The figures come as Afghanistan faced serious trade challenges with Pakistan during the second half of 2025. Following clashes and the closure of transit routes between the two countries, including the Torkham crossing, trade between Afghanistan and Pakistan was suspended for a period.
The Deputy Prime Minister’s Office for Economic Affairs had previously accused Pakistan of using the closure of transit routes as a tool to pressure Afghanistan over the years.
Mullah Abdul Ghani Baradar, Deputy Prime Minister for Economic Affairs, also called for trade with Pakistan to be halted following the escalation of tensions and urged traders to seek alternative routes for transporting Afghan goods.
According to the Ministry of Industry and Commerce, India, Pakistan, Uzbekistan, the United Arab Emirates, Kazakhstan, Iran, Türkiye, China, Iraq and Tajikistan are among Afghanistan’s main export markets.
Major Afghan exports include figs, raisins, asafoetida and its seeds, coal, cotton, pistachios, almonds, saffron, apricots, cumin, apples, grapes, honey, beverages, mineral stones, carpets, pomegranates and pine nuts.
Officials of the Islamic Emirate also say efforts are continuing to increase domestic production and reduce dependence on imports. They say Afghanistan can strengthen its position in regional trade in the coming years by developing agriculture, mining, industry and transit.
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