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U.N. aims to launch new Afghanistan cash route in February

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The United Nations aims to kick start this month a system to swap millions of aid dollars for Afghan currency in a plan to stem humanitarian and economic crises and bypass blacklisted Taliban leaders, according to an internal U.N. note seen by Reuters.

Since the Islamic Emirate of Afghanistan (IEA) takeover in August, foreign financial assistance has stopped and international banks are wary of testing U.N. and U.S. sanctions on the IEA, leaving the United Nations and aid groups struggling to obtain cash even as they continue to receive humanitarian donations.

The U.N. explanatory note, written last month, outlines an “urgently needed” Humanitarian Exchange Facility (HEF). The United Nations has warned that more than half of Afghanistan’s 39 million people are suffering extreme hunger and the economy, education and social services are collapsing.

“The overall objective is to have the HEF up and running in February,” the note said. “Prior to the full establishment of the facility, we seek to facilitate several trial swaps, to demonstrate exactly how the mechanism will work.”

U.N. and humanitarian officials warn that the facility can be only a temporary measure until Afghanistan’s central bank begins operating independently and some $9 billion in foreign reserves frozen abroad are released.

But when that could happen is uncertain. The reserves held by the United States are tied up in legal action and Western governments are reluctant to release funds unless they see the IEA show greater respect for human rights, especially those of women and girls.

The HEF would allow the United Nations – which is seeking $4.4 billion for humanitarian assistance this year – and aid groups access to large amounts of the national currency, the afghani, held in the country by private businesses.

In exchange, the United Nations would use aid dollars – potentially tens of millions – to pay the businesses’ foreign creditors, thereby bolstering the flagging private sector and critical imports.

“The facility’s flow of funds would not require the movement of funds across the Afghan border,” the U.N. note said.

While the money bypasses the IEA, the note says the HEF will need the approval of the IEA-run central bank for “the flow of funds and the exchange rate used and the withdrawal of AFN cash deposited into AIB (Afghanistan International Bank) without any restriction.”

A spokesman for the IEA care-taker government confirmed that officials in Afghanistan were aware of the proposal for the HEF, but did not know the details or the procedure.

“We welcome any kind of humanitarian actions for the people of Afghanistan, but all actions should be taken according to Afghanistan’s laws and national interests,” Bilal Karimi told Reuters on Friday in response to a question on the HEF.

The United Nations does not comment on leaked documents, U.N. spokesman Stephane Dujarric said of the note. U.N. Secretary-General Antonio Guterres has said Afghanistan is “hanging by a thread” and long pushed for international action to combat the economic crisis hampering aid efforts.

Afghanistan’s economy has continued to deteriorate, with inflation for basic household goods reaching nearly 42% in January, compared to the year-earlier period, the World Bank said on Wednesday. Wages and demand for labor continued to decline, as did imports, which were down 66% compared to a year earlier, it said.

Aid groups and U.N. officials have been advocating for a cash swap mechanism, but the U.N. note seen by Reuters provides new details on how it will work.

Graeme Smith, a senior consultant for the International Crisis Group think-tank, told the U.S. Senate Foreign Relations Committee on Wednesday that an exchange facility is needed quickly, but only as a stopgap measure.

“It is not sufficient,” he said. “Nobody should be under any illusions that this substitutes for the normal functioning of a central bank.”

Complicating the response, IEA leaders have banned the use of foreign currency in a country where U.S. dollars were common. The United Nations has flown in shipments of $100 bills, but the central bank has not converted them, leaving the world body sitting on about $135 million in cash that it cannot use, a U.N. official said last week.

Those funds are held in Kabul in the vaults of AIB, the official said, the private bank that would play a role in the new cash swap system.

The security of the cash flights and limits on how much can be delivered are key reasons for starting the new exchange facility, the note said.

World Bank and U.N. officials have been working to finalize the HEF, including completing a risk assessment, seeking a U.S. Treasury license to protect international banks from sanctions, and hiring a private company to vet participants and guard against money-laundering, the note said.

David Miliband, head of the International Rescue Committee, said the consequences of Afghanistan’s economic crisis could be devastating, and he called for a change in U.S. and international policy toward the country.

He told the Senate committee on Wednesday: “Current policy will indeed mean that a starvation crisis kills … more Afghans than the past 20 years of war.”

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Islamic Emirate faces a wave of negative propaganda: Supreme leader

In his speech, Akhundzada emphasized on avoiding division and disunity, stating that the survival of the system lies in unity and solidarity.

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Mawlawi Hibatullah Akhundzada, supreme leader of the Islamic Emirate of Afghanistan (IEA), led Eid-ul-Fitr prayer in Kandahar province on Sunday, attended by thousands of people.

In his speech, Akhundzada emphasized on avoiding division and disunity, stating that the survival of the system lies in unity and solidarity.

He added that the Islamic Emirate is facing a wave of negative propaganda, and its enemies are using these tactics to incite war and conflict in the country once again.

He warned that division would lead to the failure of Muslims and the collapse of systems.

The leader of the Islamic Emirate further mentioned that they sacrificed their lives for 20 years to achieve victory in jihad, and protecting this system requires even more sacrifices.

He called on the people, the forces of the Islamic Emirate, and officials to obey the leadership’s orders, emphasizing that the absence of leadership in the past led to civil wars, which must not be repeated.

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Pakistan finalizes plans to detain and deport Afghans as deadline nears

Pakistan has granted Afghan migrants, both undocumented and those holding ACC cards, a deadline of March 31 to voluntarily leave the country.

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Officials in Pakistan have completed arrangements to detain and expel Afghan citizens following the March 31 deadline for their voluntary return to Afghanistan. This move is part of the country’s plan to address the growing concerns regarding the status of Afghan migrants in Pakistan.

A high-level meeting on Friday, chaired by Interior Minister Mohsin Naqvi, reviewed the measures to repatriate Afghan Citizen Card (ACC) holders. This meeting focused on ensuring the effective execution of the government’s deadline and the logistics surrounding the return process.

Despite requests from the Afghan government and human rights organizations, Pakistani authorities have firmly rejected extending the deadline for the return of ACC holders. The Pakistani government had initially set the deadline for the end of March, and the expulsion process will move forward as planned.

Mohsin Naqvi also revealed that Talal Chaudhry, the State Minister for Interior, would travel to the provinces to assess and address any challenges and potential issues in the process of Afghan migrants’ return.

Meanwhile, Pakistani security forces have detained at least 932 Afghan migrants in Rawalpindi, as the deadline for the expulsion of Afghan migrants with ACC cards approaches.

​Human rights organizations have strongly condemned Pakistan’s recent decision to expel Afghan refugees, labeling it a violation of international law and a potential humanitarian crisis. They argue that many of these refugees, including human rights defenders, political activists, and victims of gender-based violence, fled Afghanistan to escape persecution and are now at risk of facing harm if deported. ​

The Human Rights Commission of Pakistan (HRCP) has expressed deep concern over the government’s ultimatum for undocumented immigrants to leave by March 31, warning that this could lead to a humanitarian disaster. They highlight that such forced repatriation violates international customary law and could adversely affect vulnerable groups, including women, children, the elderly, and individuals with disabilities. ​

Amnesty International has called on Pakistan to halt the detentions, deportations, and harassment of Afghan refugees, emphasizing that these actions violate the principle of non-refoulement, which prohibits returning individuals to places where they face risks of persecution. They stress that deporting Afghan refugees, especially women and girls, could deny them access to safety, education, and livelihoods.

Pakistan has granted Afghan migrants, both undocumented and those holding ACC cards, a deadline of March 31 to voluntarily leave the country.

However, Pakistani officials confirmed that Afghan migrants holding “PoR” cards are not at risk of being expelled until June 30.

Meanwhile, the International Organization for Migration (IOM) reported a sharp decline in Afghan returns and deportations during the first half of March. Between March 1 and 15, returns dropped by 67 per cent, while deportations fell by 50 per cent compared to the previous reporting period (February 16-28).

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Eid prayer led by IEA leader in Kandahar: Mujahid

Abdul Salam Hanafi, the Deputy Prime Minister for Administrative Affairs, called on opposition groups to return to Afghanistan and participate in the country’s reconstruction.

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Zabihullah Mujahid, the spokesperson for the Islamic Emirate, announced on Sunday that the Eid al-Fitr prayer was held at the Eidgah Mosque in Kandahar, where Hibatullah Akhundzada, the Supreme Leader of the IEA, led the prayers.

Thousands of people attended the event, marking a significant religious occasion.

Other IEA senior officials gathered for the Eid prayer at the ARG (Presidential Palace) in Kabul.

Mullah Abdul Ghani Baradar, the Deputy Prime Minister for Economic Affairs, took the opportunity to address the public, stating that the Islamic Emirate is ready to engage with the world based on mutual respect. He also emphasized the importance of unity and solidarity among the Afghan people.

Baradar stressed that rebuilding the country requires internal unity and that no foreign entity can achieve this task for Afghanistan. On security, he highlighted the achievements of the past three years, asserting that under their administration, Afghanistan has become fully secure.

He reaffirmed that the IEA is committed to fostering international relations through an “economy-driven policy.”

Abdul Salam Hanafi, the Deputy Prime Minister for Administrative Affairs, called on opposition groups to return to Afghanistan and participate in the country’s reconstruction.

Hanafi reiterated the IEA’s desire for economy-driven relations with all regional and global powers based on mutual respect.

Mohammad Yousuf Wafa, the Governor of Balkh, also affirmed that the current system will not be undermined. He stated, “This system was established through great sacrifices, and it is our collective duty to defend it.”

The Eid prayers and the speeches of the IEA leadership underscored a message of unity, security, and a desire for positive international engagement.

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