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Afghan central bank board member asks Biden, IMF to release funds

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A senior board member of Afghanistan’s central bank is urging the US Treasury and the International Monetary Fund to take steps to provide the Taliban-led government limited access to the country’s reserves to avoid economic disaster.

The Taliban took over Afghanistan with astonishing speed, but it appears unlikely that they will get quick access to most of the roughly $10 billion in assets held by Da Afghanistan Bank (DAB), which are mostly outside of the country, Reuters reported.

US President Joe Biden’s administration has said any central bank assets the Afghan government have in the United States will not be made available to the Taliban, and the IMF has said the country will not have access to the lender’s resources.

Shah Mehrabi, an economics professor at Montgomery College in Maryland and a member of the bank’s board since 2002, told Reuters in a telephone interview on Wednesday that Afghanistan faces an “inevitable economic and humanitarian crisis” if its international reserves remain frozen.

Mehrabi stressed he does not speak for the Taliban but is making this push in his capacity as a sitting board member. He said he plans to meet with US lawmakers this week, and hopes to talk to US Treasury officials soon as well.

“If the international community wants to prevent an economic collapse, one way would be to allow Afghanistan to gain limited and monitored access to its reserves,” he told Reuters.

“Having no access will choke off the Afghan economy, and directly hurt the Afghan people, with families pushed further into poverty.”

Mehrabi is proposing that Washington allow the new government in Kabul a limited amount of access each month, perhaps in the range of $100m to $125m to start with, that would be monitored by an independent auditor.

“The Biden administration should negotiate with the Taliban over the money in the same way they negotiated over the evacuation,” he said.

If the assets remain entirely frozen, then inflation will continue to soar, Afghans will not be able to afford basic necessities, and the central bank will lose its main tools for conducting monetary policy, he said.

The Taliban can survive on customs duties, increasing opium production, or selling off captured American military gear, but everyday Afghans will suffer and be solely reliant on international aid if the country does not have access to currency, Mehrabi added.

After nearly 20 years of American intervention, the Afghan economy is heavily dollarised, and depends on imports that largely must be purchased with foreign currency, he said.

With overseas reserves off-limits, Da Afghanistan Bank may be undermined after having cultivated a non-political, technocratic institution that so far has been allowed to continue its work under the Taliban, Mehrabi said.

“Their work there is not based on who is in power,” he said, noting that he has not been personally in touch with Taliban representatives, but is in daily contact with colleagues running operations there now.

Ajmal Ahmady, who led the central bank until the capture of Kabul, has said about $7 billion of DAB’s assets was held as a mixture of cash, gold, bonds and other investments at the US Federal Reserve.

Most of the rest is in other international accounts and at the Bank for International Settlements, a bank for central banks based in Switzerland, and not physically in DAB vaults, he said – leaving about 0.2 percent or less of the total accessible to the Taliban.

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Afghanistan has the right to access Amu River’s water: Uzbek minister

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Uzbekistan’s Minister of Water Resources, Shavkat Khamraev, says Afghanistan receives its share of water from the Amu River through the construction of the Qosh Tepa Canal, and that Tashkent has no problem with this.

Khamraev stated that Afghanistan has a legitimate right to access the water of the Amu River and urged his citizens not to be influenced by rumors or incorrect information.

“The Afghans are our relatives. They also have the right to take water from the Amu River. Should we pick up weapons and fight? No, we are building better relations,” said Khamraev.

Amu River is one of the most important water sources in the northern region of the country, and the countries of Tajikistan, Uzbekistan, and Turkmenistan have been utilizing it for many years.

However, Afghanistan has not used this water for many years, and now the Islamic Emirate wants to secure its share by completing the Qosh Tepa Canal.

Qosh Tepa Canal is over 280 kilometers long, and once completed, it will irrigate 1.2 million hectares of land in the provinces of Balkh, Jowzjan, and Faryab.

Experts have stated that with the completion of this canal and investment in it, Afghanistan will achieve self-sufficiency in wheat production.

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UN ‘deeply disappointed’ over ongoing ban on girls’ secondary education

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The UN in Afghanistan, UNAMA, said Wednesday it was deeply disappointed that for the fourth consecutive year, girls have again been denied access to secondary education.

According to a statement issued by UNAMA, this “will only compound Afghanistan’s human rights, humanitarian, and economic crises.

“The new school year has started in Afghanistan, but yet again with a glaring and damaging absence of girls from the classrooms. This is not only harming their future prospects, but the peace and prosperity of all Afghans,” said Roza Otunbayeva, the Secretary-General’s Special Representative for Afghanistan and head of the United Nations Assistance Mission in Afghanistan.

According to Unicef, the denial of female access to education as so far impacted 2.2 million Afghan girls, including 400,000 this year. If the ban remains in place until 2030, over four million girls will have been impacted.

“I am deeply disappointed that the de facto authorities continue to ignore the demands of communities across Afghanistan, who have endured decades of war and continue to face a terrible humanitarian crisis. This ban reduces Afghanistan’s prospects of recovery, and must be reversed,” said Otunbayeva.

“This ban is also one of the main reasons Afghanistan continues to be isolated from the international community, which is also holding back recovery. Still, I urge international donors to continue to support the Afghan people, including in the education sector where possible,” Otunbayeva said.

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Russian envoy to Islamabad says IEA’s efforts to combat terrorism have been ‘insufficient’

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Russia’s Ambassador to Pakistan, Albert P. Khorev, has said Afghanistan’s efforts to combat militancy have been inadequate but attributed this to economic challenges and prevailing security conditions in the country.

He said ISIS (Daesh) was the greatest threat to Russia’s national and regional security, and that Moscow is closely monitoring the situation.

Khorev added that Moscow is also working with regional partners under the “Quartet” format to counter terrorism.

He went on to state that Russia also continues to collaborate with regional countries under the Collective Security Treaty Organization (CSTO) to eliminate militancy.

He reaffirmed Moscow’s support for Pakistan, Afghanistan, and other regional states in tackling militant threats.

Khorev also dismissed media reports that Pakistan was supplying weapons to Ukraine.

“We have not found any proof of Pakistani arms supplies in the Ukraine-Russia conflict. All such claims are baseless.”

The Islamic Emirate of Afghanistan has meanwhile repeatedly countered that Daesh has been suppressed in Afghanistan and that the group’s activities are rooted in Pakistan.

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