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UN urgently needs cash in Afghanistan, but struggles for solution

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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Hundreds of needy families receive aid packages in Paktia

Hundreds of needy families in Gerda Seray district of Paktia province have received aid packages in the holy month of Ramadan, local officials said.
The packages have been distributed by a German foundation to residents of this district.
Khalil Rahman Haqqani, Minister of Refugees and Repatriations, said the ministry is fully prepared to meet the needs of internally displaced persons (IDPs) and returnees.
While distributing aid to those in need in this district, the minister asked international organizations to cooperate with Afghanistan in dealing with IDPs.
Habibullah Shahzad, head of Paktia migrant affairs department, meanwhile said that these aid packages include flour, oil, sugar, beans, tea, gas cylinders and blankets.
The recipients are happy that they have received aid in the holy month of Ramadan, but say they need more aid to meet their needs.
According to the refugees ministry, there are currently more than one million IDPs in the country who need emergency assistance in addition to shelter.
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Daesh claims responsibility for attack near Afghan foreign ministry

Daesh has claimed responsibility for the suicide attack that killed at least six civilians in Afghanistan’s capital Kabul on Monday, Reuters reported.
The group published the details of a suicide bomber, on its Telegram account, saying that the attack was carried out by “Abdul Hameed Khorasani.”
Monday’s attack was condemned by several national and international individuals and organizations, including the UN mission in Afghanistan.
“Reports of numerous casualties in today’s attack in Kabul-at least one child among them. It is unacceptable that ordinary Afghans continue to be targeted as they go about their daily lives,” UNAMA said in a tweet.
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AWCC launches 3G services in a remote area of Kunar province

Afghan Wireless Communication Company (AWCC) has rolled out 3G services to the remote Chaghan district in the northeastern province of Kunar.
Being so remote, Chaghan residents have struggled with limited telecommunications in the past but this week they welcomed AWCC’s initiative.
Officials in the area also welcomed the move and said the new infrastructure installed in Chaghan also helps cover surrounding areas.
“An AWCC site was opened in a dominant location. This is a very good place. It is connected to the [provincial] center and covers some areas of Marawar district and Watepur district. We are grateful to AWCC,” said Sajjad, provincial director of communications.
Ejazul Haq Yousufzai, head of Afghanistan Telecom Regulatory Authority (ATRA) in Kunar, said efforts are ongoing for the development of telecommunication services so as to reach all districts in the province.
Local authorities in Kunar expressed their appreciation for the provision of telecommunication and internet services by AWCC and acknowledged that the services provided by the company are of a good quality.
“First of all, we are very grateful to the employees of AWCC for providing these services to the people of Kunar. We ask all companies and institutions to provide such services to the mountainous province of Kunar,” provincial governor, Ahmad Taha, said.
Abdullah Haqqani, deputy governor of Kunar, said: “Kunar is a mountainous province. The number of [cellphone] towers is not enough. We demand that problems faced by the people get solved.”
Local residents also expressed their satisfaction with the recent move of AWCC.
“The opening of this site is a great achievement for these two valleys. With this, these two valleys were connected to the center. The problems that people were facing before have now been solved,” Hayatullah, a resident of Kunar province, said.
Meanwhile, AWCC officials in the eastern zone assured the people of Kunar that the company will provide telecommunication services to all remote areas of the province.
“This site plays a key role for these two valleys, Dangam, Ghazi Abad, Nari, Watepur and up to Nuristan. Without the site, other sites cannot provide these services,” said Attaullah Sahil, head of AWCC in the eastern zone.
With the improvement of the security situation, AWCC has not only expanded its telecommunication services in the eastern zone, but it has covered many remote areas of the zone with 3G and 4G internet services.
Kunar province lies in the northeastern section of the country and borders northern Pakistan. The vast majority of the province is mountainous and extremely rugged.
The province is dominated by the lower Hindu Kush mountains which are cut by the Kunar River to form the forested Kunar Valley. The mountains, narrow valleys with steep walls, and rivers present formidable natural obstacles and have historically constrained all movement through the province.
Even in the early 21st century, movement on foot, with pack animals, or with motorized vehicles is extremely limited and channeled due to the significant geographic restrictions.
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