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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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Afghan health minister calls for medical cooperation between Kabul and New Delhi
Afghanistan’s Health Minister, Noor Jalal Jalali, held a meeting on Saturday with officials from Pharmaceuticals Export Promotion Council (PharmEXCIL) to discuss expanding cooperation and bilateral relations in the fields of medicines, medical products, and health equipment between Kabul and New Delhi.
In a statement issued by the Afghan Health Ministry, both sides also emphasized strengthening the pharmaceutical industry’s capacity and the importance of providing affordable, high-quality medicines to the public.
The talks also focused on boosting cooperation in medicines, medical products, and healthcare equipment, highlighting affordable and quality drug access.
Jalali called PharmEXCIL’s support crucial for strengthening Afghanistan’s healthcare system and delivering standardized services.
He added the partnership is strategically important for drug safety, quality assurance, and sustainable health services.
PharmEXCIL outlined its work in pharmaceuticals, vaccines, biologics, medical devices, diagnostics equipment, herbal medicines, contract manufacturing, and R&D.
The council, under India’s Ministry of Commerce, oversees the promotion, regulation, and export of Indian medicines and health products.
PharmEXCIL also donated around 100,000 patches to Afghanistan to support treatment of seasonal illnesses.
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Deputy PM Baradar urges world to expand economic ties with IEA instead of sanctions
Mullah Abdul Ghani Baradar, the Deputy Prime Minister for Economic Affairs, has urged the countries in the region and around the world to soften and expand their economic relations with the Islamic Emirate instead of imposing sanctions and undue pressure.
In a statement issued by the deputy PMs office, Baradar made these remarks on Saturday during a speech at the inauguration ceremony of a commercial market in Balkh province.
Baradar added that a prosperous and strong Afghanistan is not to the detriment of other countries in the region; rather, it contributes to the welfare and strengthening of other nations.
He said: “The Islamic Emirate believes in comprehensive economic and political authenticity in the field of regional and international cooperation, provided that there is mutual respect for major values and fundamental principles.”
He stated that IEA’s engagement with the private sector in large-scale and long-term projects—based on public-private partnerships or other types of contracts—conveys a clear message that the environment for domestic and foreign investment in Afghanistan is favorable, and that anyone can take advantage of this opportunity.
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Karzai urges reopening of girls’ schools and universities for Afghanistan’s bright future
Former Afghan President Hamid Karzai says knowledge and education are the primary pillars of progress and dignity in any society.
In a post marking the end of the academic year and the preparation of 12th-grade graduates for the Kankor (university entrance) exam, Karzai said on Saturday that Afghanistan needs hundreds of thousands of female and male doctors, engineers, economists, technology specialists, and experts in other fields to become self-reliant.
He called on all students to make greater efforts and to reach higher levels in scientific and social sciences.
He once again emphasized: “I hope that, for a bright future for Afghanistan, girls’ schools and universities should be reopened so that our daughters can stand on their own feet and become worthy of serving the country.”
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