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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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Ariana Airlines brings $2.3 million Boeing 737 engine from US to Kabul

The airline said the delivery represents an important step in strengthening its technical and operational capacity and supporting the continued operation of its fleet.

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Ariana Afghan Airlines has brought a Boeing 737 aircraft engine from the United States to Kabul following continued efforts by the airline’s leadership to complete the shipment.

According to Ariana Afghan Airlines’ media office, the engine had been held up in the United States due to customs procedures. Following completion of the required process, the engine was cleared and transported to Kabul.

The engine was purchased from US-based Global Engine for $2.3 million. Ariana’s technical team is expected to install the engine on one of the airline’s Boeing 737 aircraft following its arrival.

The airline said the delivery represents an important step in strengthening its technical and operational capacity and supporting the continued operation of its fleet.

Ariana Afghan Airlines’ leadership said it is also working to accelerate the procurement of additional spare parts and technical equipment required to maintain and support the airline’s aircraft and operations.

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Afghanistan issues more than 650,000 passports in one year

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Zabihullah Mujahid, spokesperson for the Islamic Emirate, says more than 650,000 ordinary passports were issued across Afghanistan over the past Hijri year, while the visas of more than 16,000 foreign nationals were extended.

Mujahid made the remarks during the “Government in the Media Mirror” program, held under the theme “Public Services Week.”

According to him, the General Directorate of Statistics and Information also distributed nearly 2 million electronic national ID cards and around 1 million paper ID cards during the 1447 Hijri year.

Mujahid added that the agency provided hundreds of thousands of in-person and online services related to corrections and amendments to national ID cards over the past year.

The Islamic Emirate spokesperson said the General Directorate of Passports has sought to make services faster and easier by reducing the passport application form from nine pages to one page.

He also announced an expansion of services by the state-owned Afghan Post, saying the company delivered more than 5 million domestic mail items over the past year.

According to Mujahid, other measures to expand postal services included verifying and certifying hundreds of thousands of documents, launching express services, establishing a customer service center, and delivering documents directly to people’s homes.

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Construction begins on major cement production plant in Herat

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Construction of a major cement production plant has officially begun in Afghanistan’s western Herat province, with the project expected to receive $143 million in investment and create thousands of jobs.

The groundbreaking ceremony was held on Sunday in the presence of senior officials of the Islamic Emirate, including the Deputy Prime Minister for Economic Affairs, the Deputy Prime Minister for Administrative Affairs and several cabinet ministers.

Homayoun Afghan, spokesperson for the Ministry of Mines and Petroleum, said the project has been contracted to a local company and that construction is expected to be completed within two years.

Once operational, the plant is expected to produce around 3,000 tonnes of cement per day, according to the ministry.

Officials say the project will provide direct and indirect employment for approximately 5,000 people, creating jobs and supporting economic activity in the province.

The Herat cement project is considered one of Afghanistan’s major industrial projects. Its development has been anticipated for decades, with residents and officials repeatedly calling for the province’s cement resources to be developed locally.

The plant is located about 30 kilometers west of Herat city in Zinda Jan district.

The project is expected to increase domestic cement production and reduce reliance on imported cement once it becomes operational.

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