Financial squeeze on Taliban as government formation eludes Afghanistan

Tribune News Service

New Delhi, August 19

Talks for reconciliation continued in Kabul even as the International Monetary Fund (IMF) suspended $ 440 million in sanctioned aid due to a lack of clarity over the country’s government.

Simultaneously, the US also suspended a cash consignment to bridge Afghanistan’s current account deficit which was due to arrive on August 15, the day Taliban took over Kabul.

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US President Joe Biden has already said the White House will use “economic tools” to influence events in Afghanistan. The US and institutions it has influence over control bulk of Afghanistan’s $ 9 billion reserves, thus putting them out of the reach of the Taliban and its leaders who are still designated as terrorists by the UN and US.

The IMF loan was part of its $ 650 billion allocation to boost global liquidity and was to be disbursed on August 23.

Faced with the financial predicament, the Taliban continued holding talks with Khalil Al-Rahman Haqqani on Thursday meeting Afghan Reconciliation chief Abdullah Abdullah who said he supports “justice and fairness”, hinting at letting go of old animosities.

But many Afghans were still fearful and hiding in their homes while there was violence in Nangarhar and the adjacent Kunar province, both on the border with Pakistan, as the Taliban sought to disperse people waving the Afghan flag during Independence Day celebrations. Two were killed in Kunar, capital of Asadabad and as many injured in Jalalabad, the capital of Nangarhar.

There were some isolated protests linked to the flag in Kabul and women walked past Taliban security posts carrying the black, red and green national flag. The city was also beset by vehicle thefts with some alleging that Taliban fighters were involved in some of the heists.

The European Union added to the call at the August 16 emergency UNSC meeting on Afghanistan for a humanitarian corridor for the evacuation of those at risk of Taliban retribution and attacks. The EU foreign policy chief Josef Borrell said 400 Afghan staffers were still trapped in Afghanistan.

About 500 Indians working in places far from Kabul were also seeking to return home with several Chief Ministers writing to the MEA in this regard.

“Neighbouring countries must open their borders and facilitate the delivery of humanitarian assistance as well as the exit of Afghans who are trying to escape,” said Borrell.

Many airports were shut but Kabul airport continued with evacuation flights. Many parents complained that there was no news about their children who had gone to the airport to try and leave the country.

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