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Millions in US dollars smuggled into Afghanistan from Pakistan daily

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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.

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Dozens of U.S. lawmakers oppose Afghan immigration freeze after Washington shooting

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Sixty-one members of the U.S. Congress have urged the Trump administration to reverse its decision to halt immigration processing for Afghan nationals, warning that the move unfairly targets Afghan nationals following a deadly shooting involving two National Guard members.

In a letter addressed to Secretary of State Marco Rubio and Homeland Security Secretary Kristi Noem, the lawmakers said the incident should not be used to vilify Afghans who are legally seeking entry into the United States. They stressed that Afghan applicants undergo extensive vetting involving multiple U.S. security agencies.

The letter criticized the suspension of Special Immigrant Visa processing, the termination of Temporary Protected Status for Afghanistan, and broader travel and asylum restrictions, warning that such policies endanger Afghan allies who supported U.S. forces during the war.

 “Exploiting this tragedy to sow division and inflame fear will not make America safer. Abandoning those who made the courageous choice to stand beside us signals to those we may need as allies in the future that we cannot be trusted to honor our commitments. That is a mistake we cannot afford,” the group said.

The U.S. admitted nearly 200,000 Afghan nationals in the wake of the U.S. withdrawal from Afghanistan.

Thousands of Afghans who worked with the U.S. military and their families still wait at military bases and refugee camps around the world for a small number of SIVs.

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Magnitude 5.3 earthquake strikes Afghanistan – USGS

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An earthquake of magnitude 5.3 struck Afghanistan on Friday, the United States Geological Survey (USGS) said.

The quake occurred at 10:09 local time at a depth of 35 km, USGS said.

Its epicentre was 25 kilometres from Nahrin district of Baghlan province in north Afghanistan.

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Chairman of US House intel panel criticizes Afghan evacuation vetting process

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Chairman of U.S. House intelligence committee, Rick Crawford, has criticized the Biden administration’s handling of Afghan admissions to the United States following the 2021 withdrawal from Afghanistan.

In a statement, Crawford said that alongside large numbers of migrants entering through the U.S. southern border, approximately 190,000 Afghan nationals were granted entry under Operation Allies Welcome after the U.S. military withdrawal. He claimed that many of those admitted lacked proper documentation and, in some cases, were allowed into the country without comprehensive biometric data being collected.

Crawford said that the United States had a duty to protect Afghans who worked alongside U.S. forces and institutions during the two-decade conflict. However, he argued that the rapid and poorly coordinated nature of the withdrawal created conditions that overwhelmed existing screening and vetting systems.

“The rushed and poorly planned withdrawal created a perfect storm,” Crawford said, asserting that it compromised the government’s ability to fully assess who was being admitted into the country.

He said that there 18,000 known or suspected terrorists in the U.S.

“Today, I look forward to getting a better understanding of the domestic counterterrorism picture, and hearing how the interagency is working to find, monitor, prosecute, and deport known or suspected terrorists that never should have entered our country to begin with,” he said.

The Biden administration has previously defended Operation Allies Welcome, stating that multiple layers of security screening were conducted in coordination with U.S. intelligence, defense, and homeland security agencies. Nonetheless, the evacuation and resettlement of Afghan nationals remains a contentious political issue, particularly amid broader debates over immigration and border security.

U.S. President Donald Trump’s administration recently ordered its diplomats worldwide to stop processing visas for Afghan nationals, effectively suspending the special immigration program for Afghans who helped the United States during its 20-year-long occupation of their home country.

The decision came after a former member of one of Afghanistan’s CIA-backed units was accused of shooting two U.S. National Guard soldiers in Washington, D.C.

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