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UN warns of ‘colossal’ collapse of Afghan banking system

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(Last Updated On: November 22, 2021)

The United Nations on Monday pushed for urgent action to prop up Afghanistan’s banks, warning that a spike in people unable to repay loans, lower deposits and a cash liquidity crunch could cause the financial system to collapse within months.

In a three-page report on Afghanistan’s banking and financial system seen by Reuters, the U.N. Development Programme (UNDP) said the economic cost of a banking system collapse – and consequent negative social impact – “would be colossal.”

An abrupt withdrawal of most foreign development support after the Islamic Emirate of Afghanistan (IEA) seized power on August 15 from Afghanistan’s Western-backed government has sent the economy into freefall, putting a severe strain on the banking system which set weekly withdrawal limits to stop a run on deposits.

“Afghanistan’s financial and bank payment systems are in disarray. The bank-run problem must be resolved quickly to improve Afghanistan’s limited production capacity and prevent the banking system from collapsing,” the UNDP report said.

Finding a way to avert a collapse is complicated by international and unilateral sanctions on IEA leaders, Reuters reported.

“We need to find a way to make sure that if we support the banking sector, we are not supporting Taliban (IEA),” Abdallah al Dardari, head of UNDP in Afghanistan, told Reuters.

“We are in such a dire situation that we need to think of all possible options and we have to think outside the box,” he said. “What used to be three months ago unthinkable has to become thinkable now.”

Afghanistan’s banking system was already vulnerable before the IEA came to power. But since then development aid has dried up, billions of dollars in Afghan assets have been frozen abroad, and the United Nations and aid groups are now struggling to get enough cash into the country.

The UNDP’s proposals to save the banking system include a deposit insurance scheme, measures to ensure adequate liquidity for short- and medium-term needs, as well as credit guarantees and loan repayment delay options.

“Coordination with the International Financial Institutions, with their extensive experience of the Afghan financial system, would be critical to this process,” UNDP said in its report, referring to the World Bank and International Monetary Fund.

The United Nations has repeatedly warned since the IEA took over that Afghanistan’s economy is on the brink of a collapse that would likely further fuel a refugee crisis. UNDP said that if the banking system fails, it could take decades to rebuild.

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ISIS-K leader reportedly living in Pakistan’s Baluchistan province

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(Last Updated On: March 28, 2024)

Sanaullah Ghaffari, also known as Shahab al-Muhajar, is reportedly the ISIS-Khorasan (Daesh) branch leader and is holed up in Pakistan, Reuters reports.

The 29-year-old took over as leader in 2020 and under his leadership the group has carried out extreme attacks as a means of recruiting, Reuters reported.

Reuters noted that little was known about Ghafari before the deadly 2021 ISIS attack on Kabul Airport, which killed 170 Afghan civilians and 13 American soldiers.

But after Friday’s deadly attack in a concert hall in Moscow, which left 139 people dead, Ghaffari’s group has come under intense scrutiny.

Reuters reports that Ghaffari is said to have been involved in several attacks in Afghanistan, Iran, Uzbekistan, Tajikistan and Pakistan.

Pakistani officials said months ago that Ghaffari had been killed in Kunar province in Afghanistan in June last year, but Reuters has reported that he did not die and instead fled to Pakistan and lives in the border province of Baluchistan.

Abdul Matin Qani, the spokesman of the Ministry of Interior of Afghanistan, says that Daesh has been suppressed in Afghanistan for more than two years and has lost its operational capacity.

The last attack carried out by Daesh in Afghanistan was the attack on the Kabul Bank office in Kandahar last week which left three dead and 12 wounded.

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IPL: Sunrisers thump MI in record breaking match

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(Last Updated On: March 28, 2024)

It was raining records at the Rajiv Gandhi International Stadium in Hyderabad on Wednesday with the hosts Sunrisers Hyderabad (SRH) clinching a 31-run victory over Mumbai Indians (MI) in Match 8 of the Tata Indian Premier League (IPL) 2024.

Sunrisers’ batting rewrote the record books on a batting belter after the posted 277 for three.

SRH now have the highest team score in the history of the IPL – beating Royal Challengers Bangalore’s (RCB) 263 for five from the 2013 season.

In reply, MI made a spirited effort, and at one stage, were contenders to do the near impossible. In the slog overs, the enormity of the target proved a bit too much, and SRH clinched victory, but not without numerous nervous moments.

To put into perspective the carnage we witnessed – Heinrich Klaasen’s 23-ball half-century was the slowest fifty of the SRH innings.

Travis Head, playing his first match for SRH, raced to the milestone in 18 balls. Abhishek Sharma got there even faster – in 16 balls – to record the quickest fifty by an SRH batter in IPL history.

While Sunrisers notched up the highest total in the 16-year history of the IPL, just as incredibly, Mumbai Indians almost paid them back with the same coin, their batters coming out with a nothing-to-lose attitude.

The sixes kept rolling off the Mumbai bats too, helping them keep up with the asking rate for most of the chase, eventually however, they ran out of steam and finished on 246 for 5, the highest IPL total in a losing cause.

As ESPNcricinfo reported, never were more runs scored in a men’s T20 match (523). Never were most sixes hit in a men’s T20 (38). At the end of the close to four-hour six-fest, only two bowlers returned with an economy rate of under ten an over.

Thursday, March 28 : Match 9

Thursday’s match at the Sawai Mansingh Stadium in Jaipur sees Rajasthan Royals go up against Delhi Capitals.

Fans in Afghanistan can tune in to Ariana Television to watch the match live from 6.30pm. Alternatively the match can be screened live on arianatelevision.com

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Magnitude 5.2 quake jolts Afghanistan

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(Last Updated On: March 28, 2024)

An earthquake measuring a magnitude of 5.2 on the Richter Scale jolted Afghanistan on Thursday afternoon, the National Center for Seismology reported.

The quake was at a depth of 70km and epicentered in the mountainous north-eastern area of Ashkāsham.

The jolt was felt across the region including in Kabul, Tajikistan, Uzbekistan, and Kyrgyzstan

There were no immediate reports of any casualties.

In October last year, over 2,000 people were killed when four 6.3-magnitude earthquakes struck in Herat province.

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