Business
Western Union, MoneyGram resume services to Afghanistan
Western Union Co and MoneyGram International Inc resumed money-transfer services to Afghanistan on Thursday, moves in line with a U.S. push to allow humanitarian activity to continue after the Taliban’s takeover, Reuters reported.
According to the report pair suspended services in Afghanistan more than two weeks ago after the Islamist militia captured Kabul at lightning speed.
But an easing of security concerns following the completion of the Taliban’s conquest of the country opened the way for the reopening this week of banks, which the money-transfer firms rely on to dispense and collect funds.
Jean Claude Farah, Western Union’s president in Asia, Europe, the Middle East and Africa, told Reuters the reopening of banks, plus a push by the United States to facilitate humanitarian assistance to the Afghan people, had given the American company confidence to resume services on Thursday.
“Much of our business involving Afghanistan is low-value family and support remittances that support basic needs of the people there, so that’s the grounding that we have and why we want to reopen our business,” Farah said.
“We’ve engaged with the U.S. government, which has conveyed that allowing humanitarian activities, including remittances, to continue are consistent with U.S. policy.”
The flow of funds from migrant workers overseas is a key lifeline for many Afghans and has helped the economy of one of the world’s poorest nations weather years of violence and instability. The United Nations says about half of the population requires aid amid the second drought in four years, Reuters reported.
In a statement, MoneyGram said following guidance from the U.S. government, it was resuming its services in coordination with its partners in the country and the Afghanistan Banks Association.
“We recognize that remittances play a pivotal role in the livelihood and daily needs of the Afghan people,” MoneyGram said.
According to Reuters yet U.S. President Joe Biden’s administration has said it is committed to allowing humanitarian work to continue in Afghanistan.
“We are continuing to engage with the U.S. government and others to understand their policies and what type of longer term regulatory framework will be put in place as it relates to the Taliban,” Western Union’s Farah said.
Remittances to Afghanistan reached $789 million in 2020, around 4% of the country’s gross domestic product (GDP), the World Bank estimated, down from $829 million in 2019.
Such flows have historically played an important role in supporting financial stability. Along with international grants and resilient exports, remittances helped Afghanistan’s current account surplus reach 14.2% of GDP in 2020, the International Monetary Fund said in June.
In recent days, Afghanistan’s central bank has provided funds of hundreds of thousands of dollars to each bank that requested liquidity, a senior banker told Reuters. But the financial system and economy could be in peril unless the Taliban can access the central bank’s roughly $10 billion in assets, which are mostly outside of the country.
Farah said Western Union had been assured by the banks it partners with in Afghanistan that they had sufficient cash to pay receivers of remittances.
“Some of them have indicated at some locations that they have good liquidity in afghani and at least some liquidity in U.S. dollars as well, we allow payouts in both, to resume remittances,” he added.
Before it shut down services on Aug. 16, around 45% of each transaction sent via Western Union to Afghanistan was $200 or less, he said.
Western Union said on Thursday that payouts of any funds sent to Afghanistan were available in select locations. Outbound services, money sent from there to other countries, remained suspended, it added.
Business
Pezeshkian pledges to facilitate Iran-Afghanistan trade
Iranian President Masoud Pezeshkian has said that Tehran will facilitate trade and economic exchanges with Afghanistan, including easing procedures at customs and local marketplaces.
He made the remarks during a televised interview following his visit to South Khorasan province, which shares a border with Afghanistan.
Pezeshkian, in a separate event addressing local business leaders, highlighted the province’s strategic advantages, citing its rich mineral resources, proximity to neighboring countries such as Afghanistan and Pakistan, and access to the ocean via the Chabahar port. He described the region as “a golden opportunity not found everywhere,” emphasizing its potential for economic growth and cross-border commerce.
Business
Afghanistan-Kazakhstan banking ties discussed in Kabul meeting
Business
Afghanistan, Kazakhstan envoys discuss expanding trade and regional connectivity
Ambassador Shakeeb thanked Kazakhstan for its continued support and constructive engagement with Afghanistan, particularly in efforts aimed at peace and economic development.
Afghanistan’s Ambassador to Pakistan, Sardar Ahmad Shakeeb, has met with Kazakhstan’s Ambassador to Pakistan, Yerzhan Kistafin, to explore ways to strengthen bilateral relations and advance regional cooperation.
The two envoys exchanged views on Afghanistan–Kazakhstan ties, regional connectivity, and major infrastructure initiatives, as well as the opportunities and challenges facing regional trade. Discussions also touched on Kazakhstan’s role in promoting regional stability and other matters of mutual interest.
Ambassador Shakeeb thanked Kazakhstan for its continued support and constructive engagement with Afghanistan, particularly in efforts aimed at peace and economic development.
He expressed hope that the proposed $3 billion joint trade agreement, once finalized, would bring tangible benefits to both countries and contribute to broader regional economic integration.
Ambassador Kistafin reaffirmed Kazakhstan’s support for stability and economic growth in Afghanistan, highlighting his country’s involvement in key regional connectivity and trade projects.
He said the current security and stability situation in Afghanistan has increased Kazakhstan’s confidence in expanding regional trade and transit, and praised the efforts of the Islamic Emirate in this regard.
He also stressed the need for coordinated regional efforts to ensure lasting stability, sustainable economic development, and the smooth movement of goods and transit across the region.
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