Latest News
Millions in US dollars smuggled into Afghanistan from Pakistan daily
Millions of dollars are being smuggled into Afghanistan from Pakistan every day, providing some support for the fragile economy.
Muhammad Zafar Paracha, general secretary of the Exchange Companies Association of Pakistan, told Bloomberg that traders and smugglers bring as much as $5 million across the border daily, which more than covers the as much as $17 million that Afghanistan’s central bank injects into the market each week.
The illicit cash flows show how the Islamic Emirate of Afghanistan (IEA) is evading sanctions after their 2021 takeover of the country, Bloomberg reported.
For Pakistan, however, it’s contributing to the depletion of foreign reserves and adding to the downward pressure on the rupee as the currency tumbles to record lows and the economy teeters on the edge of collapse.
“Currency is being smuggled without any doubt,” Paracha told Bloomberg. “This has become quite a lucrative business.”
“Afghanistan has about a $10 to $15 million requirement on a daily basis,” said Khurram Schehzad, chief executive officer at Alpha Beta Core Solutions Pvt Ltd., a financial consultancy in Karachi. Half of this is estimated to come from Pakistan, he said.
Da Afghanistan Bank, the country’s central bank, has enough dollars in reserve to support the economy, the bank’s spokesman Haseeb Noori told Bloomberg.
However, some of it comes from the UN, which has been providing about $40 million in humanitarian aid each week since late 2021.
This cash is transported by air to Kabul each week and much of it then needs to be converted into afghani after it arrives. So even though the aid doesn’t directly benefit the IEA, the dollars ultimately end up in the central bank’s coffers, Bloomberg reported, adding that the UN wasn’t immediately available to comment.
According to the report, the afghani has gained about 5.6% against the US dollar over the past year through Monday, one of the strongest performances of any currency in the world.
This while Pakistan’s rupee has lost about 37% against the US currency over the same period, one of the largest declines. It fell about 10% in one day in late January, the biggest drop in at least two decades, as the crisis-stricken government relaxed its grip over the exchange rate in a bid to win much-needed loans from the IMF, Bloomberg reported.
However, according to Bloomberg, the smuggling of US dollars into Afghanistan really took off in the middle of last year after Afghanistan increased coal exports to Pakistan.
In addition, it has been boosted by the IEA’s ban on the use of Pakistan’s rupee as legal tender in Afghanistan, which forces exporters to trade in dollars and bring the US currency back to the country, the officials told Bloomberg.
Latest News
Afghanistan and Kyrgyzstan boost trade and digital finance ties
Minister Sydykov, in turn, pledged the continuation of Kyrgyzstan’s humanitarian assistance to Afghanistan and highlighted his country’s interest in working together on e-governance initiatives.
Afghanistan’s Deputy Prime Minister for Administrative Affairs, Abdul Salam Hanafi, has met with a high-level Kyrgyz delegation led by Minister of Economy and Commerce Bakhyt Sydykov to discuss expanding bilateral trade and strengthening cooperation in digital financial services.
During the meeting, Hanafi reaffirmed Afghanistan’s readiness to deepen ties with Kyrgyzstan, stressing the importance of developing electronic administration systems and modern banking channels to facilitate trade and financial transactions between the two countries.
Minister Sydykov, in turn, pledged the continuation of Kyrgyzstan’s humanitarian assistance to Afghanistan and highlighted his country’s interest in working together on e-governance initiatives. He also pointed to potential cooperation in areas such as the printing of securities and the development of electronic payment systems.
Latest News
India reaffirms healthcare support to Afghanistan, hands over medicines and vaccines
Indian officials said the support underscores New Delhi’s commitment to helping improve healthcare services and access to life-saving treatment in Afghanistan.
India has reaffirmed its commitment to continued humanitarian assistance and healthcare cooperation with Afghanistan, with a focus on the long-term supply of essential medicines.
According to the Ministry of Health and Family Welfare of the Government of India, Union Health Minister J.P. Nadda held a productive meeting with Afghanistan’s Minister of Public Health, Noor Jalal Jalali. The discussions focused on strengthening cooperation in the health sector and addressing the medical needs of the Afghan people.
During the meeting, a symbolic handover of cancer medicines and vaccines was carried out, reflecting India’s ongoing support for Afghanistan’s healthcare system. The ministry also announced that a larger consignment of medicines, vaccines, and a 128-slice CT scanner is being dispatched to Afghanistan as part of India’s humanitarian assistance efforts.
Indian officials said the support underscores New Delhi’s commitment to helping improve healthcare services and access to life-saving treatment in Afghanistan.
Latest News
Afghan forces target hideout of suspects linked to cross-border attacks on Chinese nationals
Afghan forces target hideout of suspects linked to cross-border attacks on Chinese nationals
Security sources said that special forces of the Islamic Emirate of Afghanistan (IEA) have targeted a hideout in Badakhshan province linked to suspects involved in attacks against Chinese nationals in neighboring Tajikistan.
According to the sources, the operation was carried out on Tuesday night in Faizabad city, where several individuals suspected of orchestrating cross-border attacks from Badakhshan’s frontier regions were believed to be present. As a result of the operation, one wanted suspect was arrested alive along with weapons and other military equipment.
The sources added that preliminary investigations and initial confessions by the detainee indicate the planning of the attacks was carried out from outside Afghanistan.
This comes as Tajikistan’s Ministry of Foreign Affairs announced on November 27 that three Chinese citizens were killed in an attack in Khatlon province.
-
Latest News4 days agoUS delivers second batch of Afghan Black Hawk helicopters to Peru
-
Latest News3 days agoGermany speeds up admission of Afghans from Pakistan
-
Sport3 days agoIPL 2026 Auction set for Abu Dhabi with $28.6 million purse at stake
-
Business4 days agoAfghan economy posts second year of growth despite deep structural challenges
-
Latest News3 days agoAfghanistan to establish independent oil and gas authority
-
Latest News3 days agoUS intelligence chief warns of ‘direct threat’ from suspected terrorists inside the country
-
Sport4 days agoATN to broadcast ‘The Best FIFA Football Awards 2025’
-
International Sports4 days agoILT20: Jahangir powers Dubai Capitals to nine-run win over Abu Dhabi Knight Riders
