A deepening funding crisis ​could leave nearly 8.3 million refugees and forcibly displaced people without access to assistance this ‌year, and push protection systems in some countries towards collapse, the United Nations refugee agency warned on Tuesday, Reuters reported.

UNHCR is facing one of its worst-ever funding crises following aid cuts by the United States and other countries. It faces a $5.789 billion funding ​gap, according to a new report by the agency, after money available to the agency fell ​24% between 2024 and 2025.

As of July, UNHCR had received only 32% of ⁠the $8.505 billion it required in 2026, while the number of forcibly displaced and stateless people globally remains ​near record levels.

UNHCR expects the population under its mandate to reach 131.2 million by year end, up from ​129.4 million at the end of last year.

“Below a certain threshold, the system doesn’t shrink, it fails,” the agency said in the 26-page report outlining the impact of budget cuts on refugee registration, child protection programmes and services for survivors ​of gender-based violence.

The report highlighted severe consequences in countries hosting large displaced populations. In Chad, where refugees have ​fled conflict in neighbouring Sudan, 319,000 people face registration delays while 200,000 women and girls could lose access to ‌safe spaces ⁠and prevention programmes.

In Sudan — which the UN considers the world’s worst displacement crisis due to the civil war that entered its fourth year in April — about 140,000 refugees and asylum-seekers remained unregistered by mid-year after registration activities were suspended for the first five months of 2026.

In Afghanistan, UNHCR grants given to people returning to ​the country have been slashed ​from $375 to $170 per person, ⁠while the country has received over one million people this year alone, due to forced or voluntary returns from neighbouring countries including Iran and Pakistan, read the report.

UNHCR said that ​further cost-saving measures could not compensate for funding shortfalls, after having already cut ​its workforce by ⁠33% in 2025, closed offices in 140 locations and discontinued operations in 15 countries compared with 2024.

The agency also said a growing share of donor funding is tightly earmarked, rising to 51% in 2026 from 19% ⁠five years ​earlier, limiting its ability to shift resources to the most ​urgent priorities.

UNHCR warned that reduced funding was gradually eroding the protection system, increasing the risk that refugees remain undocumented and that survivors ​of gender-based violence are left without the support they need.

Former U.S. Special Representative for Afghanistan Reconciliation Zalmay Khalilzad has called for an end to what he described as Pakistan’s “double game” over its alleged support for militant groups operating in Afghanistan, urging the two neighbouring countries to open a new chapter in their relations.

In a post on X, Khalilzad said he believed the past 30 years had demonstrated a significant gap between Pakistan’s public statements and its actions regarding armed groups involved in fighting in Afghanistan.

Referring to the period of the U.S. military presence in Afghanistan, Khalilzad alleged that Pakistan provided sanctuary and support to militants fighting U.S. and Afghan forces while publicly denying doing so.

“Playing this double game must stop,” Khalilzad wrote, adding that it was time for Afghanistan and Pakistan to “turn a new page.”

He called for greater economic cooperation and development between the two countries and said they should agree not to allow their respective territories to be used to threaten each other’s security.

Khalilzad’s comments come amid renewed tensions between Kabul and Islamabad over cross-border militancy and security allegations.

Pakistan has repeatedly accused the Islamic Emirate of Afghanistan of allowing Tehreek-e-Taliban Pakistan (TTP) and other militant groups to operate from Afghan territory. Kabul has denied providing sanctuary to groups planning attacks against Pakistan.

The dispute has increasingly spilled into military confrontation. Pakistan carried out airstrikes in Afghanistan on September 21, saying it had targeted militant positions, while Afghan officials and the United Nations said three civilians, including a woman and a girl, were killed. Pakistan said the strikes killed 28 militants.

Islamabad has also continued to accuse Kabul of failing to prevent attacks originating from Afghan territory. Pakistani authorities have said their military actions are carried out in response to security threats and in self-defence.

Pakistan, meanwhile, has rejected recent Afghan allegations that its security forces or intelligence agencies were involved in violence in Afghanistan’s Nuristan province, calling the claims baseless.

Against this backdrop, Khalilzad said improved relations should focus on economic cooperation, development and mutual security guarantees, with neither country allowing its territory to be used against the other.

Da Afghanistan Bank (DAB) and the Afghan Credit Guarantee Foundation (ACGF) have signed a cooperationmemorandum of understanding (MoU) aimed at strengthening the financial sector and expanding access to financial resources for small, medium and large businesses.

The agreement was signed during a ceremony at the DAB Supreme Council Hall, where DAB First Deputy Governor Sediqullah Khalid said such agreements create opportunities to provide suitable and diverse Islamic financial services to citizens and expand access to financing for small and medium-sized enterprises.

Khalid said that under the agreement, banks and financial institutions will initially receive technical and professional support. He added that five banks and one microfinance institution will receive grants worth around $1 million in the first phase to support financing for small and medium-sized businesses.

He said other banks and financial institutions that meet the required criteria would benefit from the grants and related facilities in later phases.

Khalid also said that attention would be given to facilitating the creation and financing of small businesses for Afghans returning from other countries.

Under the agreement, the two sides will cooperate on strengthening the financial sector, expanding access to financial resources for businesses, promoting Islamic financial services and building the capacity of financial institutions.

Technical and professional assistance, training programs and capacity-building opportunities will also be provided to banking and non-banking financial institutions.

Roger Thomas Piltzer, chairman of the ACGF Board of Trustees, also welcomed the agreement and stressed the importance of continuing and expanding cooperation with Da Afghanistan Bank.

The agreement aims to establish a framework for cooperation between the two sides to strengthen Afghanistan’s financial sector, expand access to Islamic financial services and provide financial resources for small and medium-sized businesses.