What funds have been cut off since the Taliban took over?

Foreign aid made up nearly 43 percent of Afghanistan’s GDP last year (down from about 100 percent from 2002 to 2009), according to the World Bank . But much of that flow of money has been frozen since the Taliban swept into Kabul on Aug. 15. The Biden administration quickly blocked Afghanistan’s central bank — with the militant group now at its helm — from accessing about $7 billion in reserves held in U.S. financial institutions. In addition, the World Bank cut off funds over concerns about “the country’s development prospects, especially for women,” under the Taliban. The institution manages the Afghanistan Reconstruction Trust Fund, which makes up about 30 percent of the country’s civilian budget . The International Monetary Fund, another key player in global financing, likewise blocked access to Afghanistan’s $460 million in emergency reserves. Others, including Germany and NATO, have put holds on their allocated aid. Western Union initially stopped facilitating transfers to Afghanistan, which relies heavily on remittances sent from abroad, but it resumed transfers on Sept. 2. The European Union, another key funder, said its aid is conditional on the Taliban respecting human rights, among other demands.

What sanctions against the Taliban were already in place?

The United Nations designated the Afghan Taliban a terrorist organization more than two decades ago. Those measures were tightened after the Sept. 11, 2001, attacks to include further asset freezes, travel restrictions and arms embargoes. In the United States, only the Pakistani Taliban is listed as a foreign terrorist organization by the State Department, while the Afghan Taliban is classified as a “Specially Designated Global Terrorist” entity. The overall effect is largely the same: U.S. citizens and institutions are broadly barred from doing business with the Taliban and its members. Now that the group is in control of Afghanistan, in theory, U.S. money that flows through the government would risk violating those sanctions. However, there is a little wiggle room, given that Washington has not recognized the Taliban as the official head of the Afghan government. Exemptions can always be carved out, as well. In recent years, for example, the United Nations waived its travel ban on several key Taliban members, including the group’s day-to-day leader, Abdul Ghani Baradar, so they could attend peace and reconciliation talks.

How could sanctions affect humanitarian efforts in Afghanistan?

After decades of war, more than half of Afghanistan’s population is dependent on aid, according to the United Nations. The ongoing political chaos — coming on the heels of economic deprivation wrought by a drought, internal displacement and the coronavirus pandemic — is expected to create a new level of calamity. While Washington sees blacklisting the Taliban as a tool to gain leverage, sanctions could make international agencies and organizations wary of working in Afghanistan for fear of running afoul of U.S. restrictions. The U.S. Treasury has issued a waiver to permit the U.S. government and contractors working for it to provide humanitarian assistance to Afghans, Reuters reported this week. This special license will enable the flow of critical medicines and other goods, despite Washington’s ban on financial dealings with the Taliban. Such authorizations are needed, say aid groups, to ensure humanitarian work can continue. But even with waivers, sanctions can have a chilling effect by creating many extra costs, hurdles and other disincentives for banks or institutions taking on the transactions.

What options does the Taliban have moving forward?

The United States has given billions of dollars in aid to Afghanistan over the years, the majority of it earmarked for military programs. Funds that did go to reconstruction were often siphoned off amid endemic corruption in the U.S.-backed government. The Taliban gained support among some Afghans by portraying itself as the less-corrupt alternative. Since retaking power, the group has pledged that any aid would be responsibly used. The Taliban had already regained control of significant swaths of Afghanistan before the U.S. military withdrawal. In addition to taxing people to fund itself, the group has relied on criminal activities, including growing opium, drug trafficking , extorting businesses and kidnapping for ransoms . Russia has called on the United States to unfreeze Afghanistan’s assets so it can provide an alternative to such activities, though Moscow itself has designated the Taliban a terrorist organization.

Asia

With the Taliban back in power, what funding can it access?

By Miriam Berger

September 2, 2021 at 3:50 p.m. EDT

People line up in Kabul on Sept. 1 to withdraw money from banks, which have been directed to limit withdrawals by individual customers to no more than $200 a week. (EPA-EFE/Shutterstock)

When the Taliban returned to power in Afghanistan last month, it inherited a fragile, aid-dependent economy in a country where, by official estimates, about 90 percent of the people live below the poverty line.

In the chaotic two weeks since, Afghans have waited hours, even days, in line to withdraw money from banks or buy basic essentials, in sharp contrast to the extremist group’s promises that Afghanistan is open to international business.

“I invite you all to come and invest in Afghanistan,” Taliban spokesman Zabihullah Mujahid said Tuesday in a speech at the Kabul airport before a male-only crowd. “Your investments will be in good hands. The country will be stable and safe.”

But it’s not that simple.

Because of the Taliban’s brutal record of suppressing religious and political freedoms, including a governing system built around gender-based violence, several countries and international institutions have cut off the government financially.

Here’s what that could mean for the Taliban and the Afghan people.

Biden administration faces big choices as economic calamity hangs over Afghanistan

Taliban takeover of Afghanistan: What you need to know

Surprise, panic and fateful choices: The day America lost its longest war

Ask The Post: The Post’s Afghanistan bureau chief answers your questions about reporting on the Taliban

FAQ: What you need to know about the Taliban

The 13 U.S. service members killed: What we know about the military victims of the Kabul airport blast

ISIS-K, the group behind the Kabul airport attack, sees both Taliban and the U.S. as enemies

Here’s how the Taliban takeover of Afghanistan could affect al-Qaeda and the Islamic State

The story of an Afghan man who fell from the sky

The treacherous journey into Kabul airport to escape Taliban-controlled Afghanistan