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UN urgently needs cash in Afghanistan, but struggles for solution

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(Last Updated On: October 29, 2021)

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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Baghlan floods leave 315 dead and over 15,00 injured so far

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(Last Updated On: May 12, 2024)

The Ministry of Refugees and Repatriations (MoRR) has confirmed that so far, 315 people have died and 1,630 others injured due to recent floods in Baghlan province.

The ministry announced the figure Sunday in a statement and said that 665 houses were completely or partially destroyed and 1,000 livestock were lost.

The ministry stated that the death toll may increase and that huge financial losses have been incurred.

On a trip to Baghlan, Mullah Abdul Ghani Baradar, deputy prime minister for economic affairs, said that the Islamic Emirate would help the flood victims with all possible means.

Baradar added that families affected by the floods will be assisted.

In addition, the ministry also announced the shipment of aid packages to the flood victims of Baghlan, which includes clothes, tents and tarpaulins.

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Uzbekistan plans to buy 1 million tons of coal from Afghanistan

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(Last Updated On: May 12, 2024)

A high-level delegation from Uzbekistan has said during its visit to Kabul that it wants to send its technical team to Kabul to discuss the purchase of one million tons of coal from Afghanistan.

The delegation, which included the Minister of Transport Ilkhom Mahkamov, and Ismatullah Irgashev, Uzbekistan’s special envoy for Afghanistan, stated this in a meeting with Amir Khan Motaqqi, Afghanistan’s Acting Minister of Foreign Affairs.

According to a statement released by the Ministry of Foreign Affairs on Sunday, the two sides discussed bilateral political and economic relations, regional connectivity, transit projects, trade, joint investment, and the role and importance of transit between Afghanistan and Uzbekistan.

Muttaqi said that Afghanistan has returned to the path of peace and stability after a long time, and this is a good opportunity for Uzbekistan, other neighbors and the region to take advantage of the Islamic Emirate’s economy-oriented regional connectivity policy.

Meanwhile, Uzbekistan’s transport minister Mahkamov stated that this time he is visiting Kabul with a strong technical team, which consists of representatives of the private sector, railway, geological and mining engineers.

He said that Uzbekistan supports the policy of the Islamic Emirate, which wants Afghanistan to become the transit hub of the region.

He pointed out that he has brought a team of engineers with him to start the practical work and feasibility studies of the Trans-Afghan railway project, and another team will visit Afghanistan this week with equipment.

Mahkamov said that Uzbekistan is ready to provide customs and border services 24 hours a day and reduce tariffs.

Meanwhile, Uzbekistan’s special representative for Afghanistan, Irgashev, stated that his country is now issuing long-term visas for truck drivers and traders, and it will extend to education, health and tourism visas.

He added that Uzbek engineers will travel to Afghanistan in the near future for the purpose of starting the construction of Imam Bukhari madrasa in Mazar-e-Sharif.

According to him, Uzbekistan is ready to work jointly with the Ministry of Information and Culture of Afghanistan over the restoration of historical sites and shrines.

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Investing in Afghanistan mines can be profitable for Iranian industry: Qiafeh

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(Last Updated On: May 12, 2024)

Qadir Qiafeh, the vice-chairman of the Iranian Chamber of Commerce, has said that several large mining companies have formed a consortium with the aim of entering Afghanistan’s mining sector.

“And an Iranian steel corporation is also making serious decisions to enter Afghanistan’s mining market,” Qiafeh said in an interview with ILNA.

“In the past several years, there have been negotiations between Iran and Afghanistan focusing on mines, and it was about 10 to 12 years ago that two Iranian companies entered Afghanistan’s mines,” he added.

“Investing in Afghanistan can be profitable for the Iranian industry sector, deepen the relations between the two countries and lead to long-term cooperation,” he said.

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