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UN sets up trust fund for ‘people’s economy’ in Afghanistan

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The United Nations said on Thursday it had set up a special trust fund to provide urgently-needed cash directly to Afghans through a system that would tap into donor funds frozen since the Islamic Emirate of Afghanistan (IEA) takeover in August.

Achim Steiner, the UN Development Programme’s (UNDP) administrator, said that Germany, a first contributor, had pledged 50 million euros ($58 million) to the fund, and that it was in touch with other donors.

“Discussions over the last few weeks have focused on how we do find a way to be able to mobilise these resources in view of the economic implosion that is now unfolding and the international community’s repeated commitment not to abandon the people of Afghanistan,” he told a news briefing.

This comes after US Deputy Treasury Secretary Wally Adeyemo said on Tuesday he sees no situation where the IEA would be allowed access to Afghan central bank reserves, which are largely held in the United States.

The IEA has called for the United States to lift a block on more than $9 billion of Afghan central bank reserves held outside the country as the government struggles to contain a deepening economic crisis.

“We believe that it’s essential that we maintain our sanctions against the Taliban (IEA) but at the same time find ways for legitimate humanitarian assistance to get to the Afghan people. That’s exactly what we’re doing,” Adeyemo told the Senate Banking Committee.

Washington and other Western countries are grappling with difficult choices as a severe humanitarian crisis looms large in Afghanistan. They have been trying to work out how to engage with the IEA without granting them legitimacy, while ensuring humanitarian aid flows into the country.

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Islamic Emirate spokesperson reveals his real name

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Zabihullah Mujahid, spokesperson for the Islamic Emirate, said for the first time publicly in an interview with the BBC that his real name is Tahir Shah Sediqi.

He did not however elaborate nor did he give any details as to why he goes by the name Zabihullah Mujahid.

Responding to a question about women’s rights, Mujahid said: “We are committed to women’s rights, freedom of expression and other issues within the framework of Sharia. Everything must be viewed through the lens of Sharia.”

Regarding women working in government offices, he said their presence in some offices could “lead to misconduct” and that “their dignity could be called into question.”

Mujahid also said that the issue of women’s education remains under consideration and that the Islamic Emirate needs a “Sharia-based solution” to the issue.

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Less than 42% of Afghans have access to national power grid: UNDP

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Only around 40 to 42 percent of Afghanistan’s population has access to the national power grid, according to the United Nations Development Programme (UNDP), which warns that unreliable electricity remains a major challenge for healthcare, education, livelihoods and local economic growth.

The UNDP says access to electricity remains particularly limited in remote areas, where many communities continue to lack adequate power services. Expanding the national grid to these areas also faces significant challenges.

“Across Afghanistan, access to reliable electricity remains one of the biggest challenges affecting healthcare, education, livelihoods, and local economic growth,” the UNDP said. “Although around 40–42% of the population has access to the national grid, nearly 90% of this access is concentrated in urban areas, while rural communities remain largely underserved.”

The lack of reliable electricity is also a growing concern among residents, particularly during the summer months. Several Kabul residents say they receive electricity for only a few hours a day and are calling for an increase in power generation and a reduction in frequent outages.

“We are suffering from the heat. There is no electricity throughout the night. It is difficult without a fan. The electricity shortage must be addressed,” said Mohammad Ismail, a Kabul resident.

Another Kabul resident, Hizbullah Krokhil, said electricity is an essential need for every household and urged the government to take action.

“Electricity is a necessity for everyone in society. We call on the government to take action so that people can be freed from the problem of electricity shortages,” he said.

Other residents say demand for electricity is increasing steadily and that work on power generation and infrastructure projects needs to be accelerated.

“Power outages should be reduced and more electricity should be generated. People are currently facing a major problem. We call on the government to work on electricity generation projects,” said Islamuddin, another Kabul resident.

Meanwhile, officials at Da Afghanistan Breshna Shirkat (DABS) say the country’s electricity shortage is a longstanding problem and cannot be resolved immediately.

Mohammad Sadiq Haqparast, a DABS spokesperson, said the utility company is working to address electricity shortages and reduce frequent outages.

“Breshna is working to address the electricity shortage, which has resulted in frequent power outages, so that the problem can be resolved as soon as possible. We have signed 17 contracts with different companies, and work on 10 of these projects is currently underway,” Haqparast said.

Afghanistan remains heavily dependent on imported electricity, with much of the country’s power supplied by neighboring states. The government pays significant amounts annually to import electricity, highlighting the need for increased domestic power generation and expansion of the national grid.

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SCO summit to be held without confirmed Afghan invitation

Afghanistan became an SCO observer in 2012, but its observer status was suspended following the Islamic Emirate’s return to power in August 2021.

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The Shanghai Cooperation Organization (SCO) summit is scheduled to take place on September 1 in Bishkek, the capital of Kyrgyzstan, with leaders of the organization’s 10 member states expected to attend.

However, no invitation for the Islamic Emirate of Afghanistan has so far been publicly announced.

Experts say Afghanistan’s participation in SCO meetings is important for regional security and stability, given the country’s strategic location and the direct impact of developments in Afghanistan on neighboring SCO members.

The Islamic Emirate has repeatedly called for Afghanistan to be included in regional discussions, arguing that Kabul’s views should be considered in decisions and initiatives concerning the future of the region.

Analysts say participation in SCO meetings could give Kabul an opportunity to strengthen engagement with regional countries, particularly on security and economic cooperation. They also believe Afghanistan’s presence could contribute to discussions on the country’s future role in regional security and economic mechanisms.

Afghanistan became an SCO observer in 2012, but its observer status was suspended following the Islamic Emirate’s return to power in August 2021.

Russian officials have previously said that the organization’s permanent members hold a positive view of restoring Afghanistan’s observer status.

Analysts believe restoring the status could provide Afghanistan with a platform for greater regional engagement and help expand cooperation with SCO members in areas such as security, trade and economic development.

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