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U.S. has no plans to release billions in Afghan assets: Reuters

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(Last Updated On: September 3, 2021)

The Biden administration has no plans to release billions in Afghan gold, investments and foreign currency reserves parked in the United States that it froze after the Taliban’s takeover, despite pressure from humanitarian groups and others who say the cost may be the collapse of Afghanistan’s economy.

Much of the Afghan central bank’s $10 billion in assets are parked overseas here, where they are considered a key instrument for the West to pressure the Taliban here to respect women’s rights and the rule of law.

Any unfreezing of these assets may be months away, financial experts said.

Officials from the U.S. State Department, U.S. Treasury, White House National Security Council and other agencies have been in regular discussions about Afghanistan’s finances since the Taliban took over in mid-August, ahead of what the United Nations and others see as a looming humanitarian crisis.

Any decision to release the funds would likely involve top U.S. officials from several departments but will ultimately be up to President Joe Biden, the experts said.

Food and fuel prices are soaring across Afghanistan, amid a shortage of cash triggered by a halt in foreign aid, a halt in dollar shipments and a drought.

The U.S. Treasury this week said it had granted a license here authorizing the U.S. government and its partners to continue to facilitate humanitarian aid in Afghanistan. It also gave Western Union, the world’s largest money transfer firm, and other financial institutions a green light to resume processing here personal remittances to Afghanistan from migrants overseas.

The Treasury Department is not easing sanctions on the Taliban or loosening restrictions on their access to the global financial system, a spokesperson told Reuters.

“The United States government has been in touch with humanitarian partners in Afghanistan, both regarding security conditions on the ground and about their ability to continue their humanitarian work,” the spokesperson said.

 “As we maintain our commitment to the Afghan people, we have not reduced sanctions pressure on Taliban leaders or the significant restrictions on their access to the international financial system.”

Shah Mehrabi, an economics professor in Maryland and long-time member of the Afghan central bank’s board, a senior Russian official and humanitarian groups are among those urging the U.S. Treasury to also unfreeze the Afghan assets, saying that lives are at stake.

“The gravity of the situation is so immense. Every day that passes is going to result in more suffering and more exodus of people,” Mehrabi said.

The International Monetary Fund has also blocked the Taliban from accessing some $440 million in new emergency reserves, or Special Drawing Rights, issued by the global lender last month.

Adnan Mazarei, former deputy director of the IMF and now a fellow at the Peterson Institute for International Economics, said the United States could not legally release the Afghan assets until there was an internationally recognized government, and that could take many months to occur. The IMF could not act until its board voted, once a government was recognized.

He said a central bank’s reserves are typically not touched except as a last resort. Even Iran, struggling under intense international sanctions, has not used its IMF emergency reserves, he said.

Brian O’Toole, a former Treasury Department official now with the Atlantic Council, said a release of the Afghan assets would not solve Afghanistan’s considerable problems.

“Just releasing those funds doesn’t stabilize the Afghan economy, or do anything like that. What it does is give the Taliban access” to billions of dollars, he said. “I don’t think there’s gonna be a lot of appetite in the U.S. to do that, nor should there be.”

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Ministry of Finance rejects claims of closure of Islam Qala customs office

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(Last Updated On: May 31, 2023)

The ministry of finance has rejected claims that the Islam Qala customs office in Herat province has suspended operations.

According to officials, media reports indicated that their office closed on Wednesday.

“We reject the false reports published in this regard and want to mention that Islam Qala Customs of Herat works normally and provides the necessary services,” officials said.

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Five-day expo in Herat of domestic products draws good response

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(Last Updated On: May 30, 2023)

Herat Chamber of Industries and Mines says a five-day expo of domestically manufactured goods has drawn over 20,000 visitors and that business owners have signed dozens of contracts with investors and traders from other provinces.

“The booths were very good, the facilities were very good, people had all visited, participated from Herat and other provinces, and many of the contracts were signed at this expo,” said Toryali Ghousi, deputy of Herat Chamber of Industries and Mines.

Officials also said that the factory owners have displayed their products in 120 booths.

Dairy and other consumable products along with plastic goods, medicines and home appliances were among the items showcased at this expo.

Business owners have welcomed initiatives to hold expos and say more are needed so as to encourage people to buy domestic products.

“If these expos are always held and people come to see the domestic products, Inshallah, we will be able to stop the goods coming from abroad and move towards self-sufficiency,” said one business owner.

“Most of the people are not aware of domestic products and when expos are held, they become aware of domestic products,” said another participant.

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Process of exporting fresh fruit to world markets kicks off: MoIC

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(Last Updated On: May 29, 2023)

The Ministry of Industry and Commerce (MoIC) says the process of exporting fresh fruit to world markets has started.

The ministry’s spokesman Abdul Salam Jawad said that they are trying to market the country’s fresh fruits in order to export them at a reasonable price.

“Fortunately, we were able to export 20 tons of cherries to Kazakhstan, and our other fresh fruit is black cherry, which are ripe and almost ready to package, and we will export them to the United Arab Emirates and Kazakhstan,” he said.

The Chamber of Agriculture and Livestock also said that when problems with the issuing of visas by countries to Afghan businessmen are resolved, they can export more products.

“We have invested in the packaging and in the cold storage areas, and we have the ability to adjust and export this packaging to Europe and America based on global standards,” said Omid Haidari, head of foreign relations of the Chamber of Agriculture and Livestock.

“Unfortunately, due to the lack of air corridors and subsidies from the Ministry of Agriculture, we indirectly export fruits to India and Pakistan, and later Indian and Pakistani businessmen buy from us and export to Europe,” he added. 

However, a number of investors say that if the country’s fresh fruit is not marketed, farmers and businessmen will face losses.

“Seven kilos of our watermelons are sold for fifty afghanis, seven kilos of our watermelons from Farah to here [Kabul] cost forty afghanis as fare; the farmer is really very poor,” said a trader. 

According to experts, if fresh fruit and other products of Afghanistan are regularly exported, the country’s national income will increase.

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