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UN urgently needs cash in Afghanistan, but struggles for solution

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The United Nations cannot get enough cash into Afghanistan to deliver humanitarian aid to millions of people on the brink of starvation and is struggling to develop options to help stabilize the collapsing economy, U.N. officials said.

Ultimately political solutions are needed, a senior U.N. official told Reuters on condition of anonymity, an apparent reference to sanctions relief and for governments and institutions to free up billions of dollars of Afghan assets held overseas.

In the meantime U.N. agencies are scrambling to find ways to get large amounts of U.S. dollars into Afghanistan to combat a liquidity crisis that has taken hold since the Islamic Emirate of Afghanistan (IEA) ousted the Western-backed government in August.

The U.N. official shared with Reuters some of the options being suggested.

The delivery of U.S. dollars to Afghanistan has stopped since the IEA seized power and if countries or international financial institutions don’t step up then the United Nations might have to fill the gap, said the official.

One suggested option is using Afghanistan International Bank, which could bring in and store money, but there are issues with insurance, the U.N. official said.

The United Nations is also aware that no one option will work and several avenues to get enough cash into Afghanistan are needed, the official said.

U.N. Secretary-General Antonio Guterres has called for the International Monetary Fund to agree on waivers or mechanisms to get money into Afghanistan. The IMF has blocked the IEA from accessing some $440 million in new emergency reserves.

Much of the Afghan central bank’s $10 billion in overseas assets have been frozen as well, most of it in the United States. The U.S. Treasury has said there are no plans to release the money.

“We need to work together to make the economy breathe again and to help people survive,” Guterres said on Wednesday. “Injecting liquidity into the Afghan economy can be done without violating international laws or compromising principles.”

The United Nations has repeatedly warned that Afghanistan’s economy is on the brink of collapse and would likely further fuel a refugee crisis.

When asked about U.N. efforts to get cash into Afghanistan, Mary-Ellen McGroarty, head of the World Food Programme in Afghanistan, told reporters on Tuesday: “The U.N. collective is looking at what potential solutions we could have, but flying in money to the country is not on the table yet.”

“What we are using at the moment is the limited liquidity that is in the country,” she said. “But the longer this goes on … we’re finding it’s becoming more and more difficult.”

Some 8.7 million people are “one step away from starvation,” said McGroarty, adding: “There is a tsunami of destitution, incredible suffering and hunger spiraling out of control.”

The IEA is facing growing international pressure for an inclusive and representative Afghan government and to uphold human rights, particularly those of women and girls in return for international recognition and freeing up aid and reserves.

Donors and institutions are also seeking to avoid running afoul of U.N. and unilateral sanctions on the IEA.

The United Nations is appealing for countries “to provide humanitarian financial exemptions to allow funds to reach aid organizations in the country,” said U.N. spokesman Stephane Dujarric, without naming names.

U.N. agencies and aid groups are currently using informal money-moving networks – known as hawalas – and small amounts of cash in banks to pay staff salaries and for other smaller scale purchases, Dujarric told Reuters.

“These modalities are not sufficient for the large scale operations requiring cash payments or cash assistance in-country, however,” said Dujarric, adding that the United Nations was talking to international financial institutions to find a solution that would expand aid operations.

A key part of U.N. plans to inject money into Afghanistan is by providing cash directly to poor Afghan families.

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IEA ambassador meets top Chinese diplomat for Asia

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Bilal Karimi, the Ambassador of the Islamic Emirate in Beijing, met on Thursday with Liu Jinsong, head of the Asian Department of China’s Ministry of Foreign Affairs, and Yue Xiaoyong, China’s Special Representative for Afghanistan. The officials discussed political, economic, and commercial relations between the two countries, the activation of the Wakhan corridor, consular affairs, and other related issues.

According to a statement from the Embassy of Afghanistan in China, Karimi praised China’s positive stance toward Afghanistan and considered cooperation between the two countries necessary.

The statement added that Liu and Yue, while respecting Afghanistan’s independence, territorial integrity, and sovereignty, also emphasized the continuation of cooperation.

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Afghanistan facing deepening hunger crisis after US Aid Cuts: NYT reports

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Afghanistan has plunged deeper into a humanitarian crisis following sharp cuts to U.S. aid, with child hunger at its worst level in 25 years and nearly 450 health centers forced to close, the New York Times reported.

According to the report, U.S. funding — which averaged nearly $1 billion a year after the Islamic Emirate takeover in 2021 — has largely evaporated following the dismantling of the U.S. Agency for International Development (USAID) under President Donald Trump.

The World Food Program (WFP) estimates that four million Afghan children are now at risk of dying from malnutrition.

The aid cuts have hit rural areas particularly hard, leaving families without access to basic health care. In Daikundi province, the closure of local clinics has been linked to preventable deaths during childbirth and rising child mortality.

Nationwide, more than 17 million Afghans — about 40 percent of the population — face acute food insecurity, with seven provinces nearing famine conditions, the report said.

The crisis has been compounded by mass deportations of Afghan refugees from Iran and Pakistan, deadly earthquakes, and ongoing drought. While other donors and Afghan authorities have tried to fill the gap, their efforts fall far short of previous U.S. assistance, the NYT reported.

Humanitarian groups warn the impact will be long-lasting. Researchers cited by the New York Times say sustained malnutrition could damage an entire generation, with consequences that cannot be reversed even if aid resumes in the future.

However, the spokesperson of the Islamic Emirate, Zabihullah Mujahid, considers the findings of this report to be inaccurate and said that the situation in Afghanistan is not as dire as it is portrayed, and that the country’s situation is moving toward improvement.

“In our view, this report is not correct. We have gone through difficult times and experienced problems such as a humanitarian crisis. At one point, we suffered very heavy casualties and our people faced many difficulties, but now the situation of most people is improving. The country’s economy is moving in a positive direction, to some extent job opportunities have been created for unemployed people, efforts are still ongoing, and Afghanistan’s economic resources have been revived,” said Mujahid.

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Uzbekistan, Kazakhstan discuss cooperation on Afghanistan

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Ismatulla Irgashev, Special Representative of the President of Uzbekistan for Afghanistan, met on Tuesday with Beibut Atamkulov, Kazakhstan’s Ambassador to Uzbekistan, to discuss bilateral cooperation on Afghanistan.

The two sides highlighted their commitment to maintaining regular dialogue aimed at addressing the Afghan issue, according to a statement issued by Uzbekistan foreign ministry.

Atamkulov praised Uzbekistan’s efforts to help shape a unified regional position on Afghanistan.

The meeting also included discussions on involving Afghanistan in regional connectivity initiatives, particularly the implementation of the Trans-Afghan railway project.

Officials described the meeting as constructive and reaffirmed mutual interest in further developing practical cooperation between Tashkent and Astana.

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