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UN sets up trust fund for ‘people’s economy’ in Afghanistan

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(Last Updated On: October 21, 2021)

The United Nations said on Thursday it had set up a special trust fund to provide urgently-needed cash directly to Afghans through a system that would tap into donor funds frozen since the Islamic Emirate of Afghanistan (IEA) takeover in August.

Achim Steiner, the UN Development Programme’s (UNDP) administrator, said that Germany, a first contributor, had pledged 50 million euros ($58 million) to the fund, and that it was in touch with other donors.

“Discussions over the last few weeks have focused on how we do find a way to be able to mobilise these resources in view of the economic implosion that is now unfolding and the international community’s repeated commitment not to abandon the people of Afghanistan,” he told a news briefing.

This comes after US Deputy Treasury Secretary Wally Adeyemo said on Tuesday he sees no situation where the IEA would be allowed access to Afghan central bank reserves, which are largely held in the United States.

The IEA has called for the United States to lift a block on more than $9 billion of Afghan central bank reserves held outside the country as the government struggles to contain a deepening economic crisis.

“We believe that it’s essential that we maintain our sanctions against the Taliban (IEA) but at the same time find ways for legitimate humanitarian assistance to get to the Afghan people. That’s exactly what we’re doing,” Adeyemo told the Senate Banking Committee.

Washington and other Western countries are grappling with difficult choices as a severe humanitarian crisis looms large in Afghanistan. They have been trying to work out how to engage with the IEA without granting them legitimacy, while ensuring humanitarian aid flows into the country.

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Afghanistan’s problems caused more damage to Pakistan than 3 wars with India: Durrani

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(Last Updated On: April 25, 2024)

Islamabad’s special envoy for Afghanistan Asif Durrani said on Wednesday that Pakistan has suffered more due to Afghanistan’s internal situation than Pakistan has suffered in three wars with India in terms of blood spilt and finances drained.

Durrani said at a one-day International Conference titled “Pakistan in the Emerging Geopolitical Landscape”, which was organized by the Institute of Strategic Studies Islamabad (ISSI) and the German Friedrich Ebert Stiftung (FES), that over 80,000 Pakistanis died in the two decades of the War on Terror and that his country was still counting its dead and injured.

“After the withdrawal of NATO forces, it was hoped that peace in Afghanistan would bring peace to the region. However, such expectations were short-lived,” he said.

He also stated that attacks by the Tehreek-e-Taliban Pakistan (TTP) militant group on Pakistan’s border areas increased by 65 percent, while suicide attacks increased by 500 percent.

“The TTP’s enhanced attacks on Pakistan while using Afghan soil have been a serious concern for Pakistan. Another worrying aspect is the participation of Afghan nationals in these attacks,” he said.

Durrani also said Pakistan had suffered geopolitically since the Soviet Union invaded the neighboring country.

“The post-9/11 world order has negatively impacted Pakistan. Apart from losing 80,000 citizens’ lives, including 8,000 law enforcement agency personnel, the country’s economic opportunity cost is estimated at $150 billion,” Durrani said.

Talking about the future outlook for Pakistan in the regional context, Durrani said that while “our eastern neighbor is likely to continue with its anti-Pakistan pursuits, the western border poses an avoidable irritant in the short to medium term.”

However, he said Pakistan can overcome its difficulties with Afghanistan, including the TTP challenge.

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Afghanistan now a ‘nexus for diplomatic endeavors’, says IEA

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(Last Updated On: April 25, 2024)

In the wake of dozens of meetings between high-ranking Islamic Emirate officials and visiting officials from foreign countries, and other diplomatic advances, the IEA said on Thursday that in the current geopolitical landscape, Kabul now “serves as a nexus for diplomatic endeavors and political deliberations pertaining to global affairs”.

In a series of posts on X, the IEA’s spokesman Zabihullah Mujahid said diplomatic missions and political delegations from various nations, including Russia, Malaysia, Kazakhstan, Turkmenistan, the European Union, and others, “are evident in the capital, highlighting its strategic importance in fostering Islamic cooperation”.

He said: “Recently, the honorable Minister of Transport of the Islamic Emirate, Mr. Hamidullah Akhundzada, led a significant delegation to Termez, Uzbekistan, for essential discussions aimed at enhancing bilateral relations.

“These discussions encompass a wide range of topics, from trade facilitation to security assurances, indicating a focused effort by the Islamic Emirate to strengthen and broaden its international engagements, thereby ensuring sustained development and stability.

“These initiatives, characterized by diligence and effectiveness, underscore Afghanistan’s enduring commitment to diplomatic engagement and its pivotal role in regional and global affairs,” he said.

Mujahid added that these initiatives “also emphasize the vital connection between diplomatic efforts and economic prosperity, promising favorable outcomes for Afghanistan’s socio-economic landscape.”

He pointed out that despite ongoing challenges, Afghanistan “remains steadfast in its pursuit of prosperity and resilience, defying pessimistic projections and charting a course towards political and economic renewal.”

He said: “Continued efforts are essential to fostering inclusive growth and impactful initiatives, thus advancing Afghanistan’s journey towards sustainable development and increased influence on the global stage.”

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Mullah Baradar discusses creation of railway with Kazakh deputy PM

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(Last Updated On: April 25, 2024)

Mullah Abdul Ghani Baradar, deputy prime minister for economic affairs has met with Erik Zhumangarin, the Deputy Prime Minister of Kazakhstan, and discussed the establishment of a railway network from Kazakhstan to Pakistan through Turkmenistan and Afghanistan, the deputy PM’s office said in a statement.

During the meeting, Baradar emphasized the need to sign agreements to solve the banking problems of traders from both countries, the creation of Afghan-Kazakh joint companies, and the facilitation of visas for Afghan traders.

According to the statement, the Deputy Prime Minister of Kazakhstan said that the Kazakh government intends to establish a joint chamber of industry and commerce and a joint trade and labor group between the two countries, and is ready to cooperate with Afghanistan in the sectors of e-governance, industry, higher education, education, health, and banking.

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