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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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Afghanistan expresses condolences over deadly gas facility blast in Qatar
At least thirteen people were killed and 66 people injured after an explosion at Qatar’s core LNG processing site of Ras Laffan on Sunday, Energy Minister Saad al-Kaab said on Monday.
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Qatar embassy holds roundtable on Afghanistan’s relations with international community
The Embassy of the State of Qatar in Kabul held a roundtable discussion on Afghanistan’s relations with the international community, bringing together representatives from the United Nations and Afghanistan’s Ministry of Foreign Affairs.
The meeting was attended by Georgette Gagnon, Acting Head of the United Nations Assistance Mission in Afghanistan (UNAMA) and Deputy Special Representative of the UN Secretary-General for Political Affairs, as well as Scott Smith, Head of UNAMA’s Political Affairs Division.
The Afghan side was represented by Zakir Jalaly, Head of the Second Political Division at the Ministry of Foreign Affairs, and Abdul Hai Qanit, Director of the Strategic Studies Center at the ministry.
According to a statement issued by the Qatari Embassy, discussions focused on the future of Afghanistan’s relations with the international community and explored ways to support and strengthen those ties.
The roundtable reflects ongoing diplomatic efforts to encourage dialogue and engagement on Afghanistan’s international relations amid evolving regional and global dynamics.
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Belgium issues visas to IEA delegation for EU meeting
Belgium said on Monday it had issued five visas to an Islamic Emirate of Afghanistan (IEA) delegation to attend an EU meeting on migration in Brussels, in what would be the first time the EU has hosted the IEA since it returned to power in Afghanistan five years ago.
The visas are restricted in both geographical scope and duration, allowing travel only to Belgium and for a single day, a Belgian foreign ministry spokesperson said, adding that the date of the visit would not be disclosed for security reasons.
Two European officials said the delegation had been granted one-day visas valid only on Tuesday, June 23, Reuters reported.
The Commission last month invited IEA officials to Brussels to discuss deportations of Afghan migrants.
The Commission said the meeting is technical and does not constitute recognition of IEA rule.
“Member States are looking into ways to return persons who have committed serious crimes and who are possibly a security threat. So this is the initiative that the Commission is now following up on,” Commission spokesman Markus Lammert told the EU’s daily press briefing on Monday.
According to a letter seen by Reuters and addressed to Abdul Qaher Balkhi, an Afghan foreign ministry spokesman, it will focus on “the return and readmission of Afghan nationals without a right to stay in the European Union”.
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