London Daily

Focus on the big picture.
Friday, Oct 24, 2025

Taliban Face Critical Need For International Aid

Taliban Face Critical Need For International Aid

Some major donors already halted their support for the country, and the World Bank and IMF may freeze financial aid if major governments fail to recognize the new leadership.

The Taliban have promised to improve Afghanistan's economy, but to do that the new regime will need foreign aid -- and there is no guarantee it will get the funds it needs.

Some major donors already halted their support for the country, one of the world's poorest, and the World Bank and IMF also may freeze financial aid if major governments fail to recognize the new leadership.

"Afghanistan is tremendously dependent on foreign aid. Foreign aid is about 10 times or even more than the Taliban has been able to obtain from its own finance," said Vanda Felbab-Brown, an Afghanistan specialist at the Brookings Institution, a Washington think tank.

"International economic aid, and access to international economic funds will be crucial."

In 2020, aid flows represented 42.9 percent of Afghanistan's $19.8 billion GDP, according to World Bank data.

"Afghanistan's economy is shaped by fragility and aid dependence," the Washington-based development lender said.

Opium and taxes


The Taliban gets much of its revenue from criminal activities such as the cultivation of poppies used to make heroin and opium, as well as from drug trafficking, according to a May 2020 report from a UN Security Council sanctions committee.

Extortion of businesses as well as ransom from kidnapping also provide income, according to the report which estimated the group's revenues at $300 million to $1.5 billion a year.

The Taliban is expert in taxing just about everything in areas they control, from government projects to goods, and "they will continue to use that as a source of funding," said Charles Kupchan, a senior fellow at the Council on Foreign Relations.

The international community has spent billions of dollars over the years to help Afghanistan eradicate poppy cultivation, but the country still produces more than 80 percent of the world's opium.

The industry employs hundreds of thousands of people in a country with high unemployment after 40 years of conflict.

The Afghan economy has taken a hit during the Covid-19 pandemic, and the Taliban has acknowledged that it cannot improve the situation without foreign help.

"We have spoken to many countries. We want them to work on our economy. We want them to help us," Taliban spokesman Zabihullah Mujahid said Tuesday.

However as they did when they ruled the country from 1996 to 2001, the group will ban opium production, he said.

Friendly relations?


The reception the group received following the shock takeover of the capital Kabul appears less reserved than during the first stint in power.

Russia, China and Turkey have all welcomed the Talibans' first public statements. However, many donor countries, starting with the United States, are wary.

Washington has insisted that it expects the Taliban to respect human rights, including those of women.

Canadian Prime Minister Justin Trudeau said his country has "no plans" to recognize the Taliban.

Germany announced the suspension of its development aid on Monday. Berlin was going to provide 430 million euros ($503.1 million) in aid this year, including 250 million euros ($292.5 million) for development.

"They have an interest in trying to preserve at least a measure of good standing in the international community, because they want ... political support and economic assistance," Kupchan said.

It is not clear if neighboring China, the world's second-largest economy, will fill the void should relations with western nations remain cold.

"The Chinese are very mercantilist. They tend to be more interested in countries with good business environments," Kupchan said.

Beyond their cash on hand, the Taliban may have few other funds to draw upon: most of the country's reserves are held overseas, Afghanistan's central bank chief said Wednesday.

The majority are in the United States, where President Joe Biden's administration said the Taliban will not have access to them.

And Western Union announced it was temporarily cutting off wire transfers to the country -- another vital source of cash for the people.

According to the World Bank's most recent estimates from May, remittance flows to Afghanistan from overseas were estimated at $789 million in 2020.

Newsletter

Related Articles

0:00
0:00
Close
Microsoft AI CEO: ‘We’re making an AI that you can trust your kids to use’ — but can Microsoft rebuild its own trust before fixing the industry’s?
China and Russia Deploy Seductive Espionage Networks to Infiltrate U.S. Tech Sector
Apple’s ‘iPhone Air’ Collapses After One Month — Another Major Misstep for the Tech Giant
Graham Potter Begins New Chapter as Sweden Head Coach on Short-Term Deal
Ecuadorian President Daniel Noboa Alleges Poison Plot via Chocolate and Jam
Lakestar to Halt External Fundraising as Investor in Revolut and Spotify
U.S. Innovation Ranking Under Scrutiny as China Leads Output Outputs but Ranks 10th
Three Men Arrested in London on Suspicion of Spying for Russia
Porsche Reverses EV Strategy as New CEO Bets on Petrol and Hybrids
Singapore’s Prime Minister Warns of ‘Messy’ Transition to Post-American Global Order
Andreessen Horowitz Sets Sights on Ten-Billion-Dollar Fund for Tech Surge
US Administration Under President Donald Trump Reportedly Lifts Ban on Ukraine’s Use of Storm Shadow Missiles Against Russia
‘Frightening’ First Night in Prison for Sarkozy: Inmates Riot and Shout ‘Little Nicolas’
White House Announces No Imminent Summit Between Trump and Putin
US and Qatar Warn EU of Trade and Energy Risks from Tough Climate Regulation
Apple Challenges EU Digital Markets Act Crackdown in Landmark Court Battle
Nicolas Sarkozy begins five-year prison term at La Santé in Paris
Japan stocks surge to record as Sanae Takaichi becomes Prime Minister
This Is How the 'Heist of the Century' Was Carried Out at the Louvre in Seven Minutes: France Humiliated as Crown with 2,000 Diamonds Vanishes
China Warns UK of ‘Consequences’ After Delay to London Embassy Approval
France’s Wealthy Shift Billions to Luxembourg and Switzerland Amid Tax and Political Turmoil
"Sniper Position": Observation Post Targeting 'Air Force One' Found Before Trump’s Arrival in Florida
Shouting Match at the White House: 'Trump Cursed, Threw Maps, and Told Zelensky – "Putin Will Destroy You"'
Windows’ Own ‘Siri’ Has Arrived: You Can Now Talk to Your Computer
Thailand and Singapore Investigate Cambodian-Based Prince Group as U.S. and U.K. Sanctions Unfold
‘No Kings’ Protests Inflate Numbers — But History Shows Nations Collapse Without Strong Executive Power
Chinese Tech Giants Halt Stablecoin Launches After Beijing’s Regulatory Intervention
Manhattan Jury Holds BNP Paribas Liable for Enabling Sudanese Government Abuses
Trump Orders Immediate Release of Former Congressman George Santos After Commuting Prison Sentence
S&P Downgrades France’s Credit Rating, Citing Soaring Debt and Political Instability
Ofcom Rules BBC’s Gaza Documentary ‘Materially Misleading’ Over Narrator’s Hamas Ties
Diane Keaton’s Cause of Death Revealed as Pneumonia, Family Confirms
Former Lostprophets Frontman Ian Watkins Stabbed to Death in British Prison
"The Tsunami Is Coming, and It’s Massive": The World’s Richest Man Unveils a New AI Vision
Outsider, Heroine, Trailblazer: Diane Keaton Was Always a Little Strange — and Forever One of a Kind
Dramatic Development in the Death of 'Mango' Founder: Billionaire's Son Suspected of Murder
Two Years of Darkness: The Harrowing Testimonies of Israeli Hostages Emerging From Gaza Captivity
EU Moves to Use Frozen Russian Assets to Buy U.S. Weapons for Ukraine
Europe Emerges as the Biggest Casualty in U.S.-China Rare Earth Rivalry
HSBC Confronts Strategic Crossroads as NAB Seeks Only Retail Arm in Australia Exit
U.S. Chamber Sues Trump Over $100,000 H-1B Visa Fee
Shenzhen Expo Spotlights China’s Quantum Step in Semiconductor Self-Reliance
China Accelerates to the Forefront in Global Nuclear Fusion Race
Yachts, Private Jets, and a Picasso Painting: Exposed as 'One of the Largest Frauds in History'
Australia’s Wedgetail Spies Aid NATO Response as Russian MiGs Breach Estonian Airspace
McGowan Urges Chalmers to Cut Spending Over Tax Hike to Close $20 Billion Budget Gap
Victoria Orders Review of Transgender Prison Placement Amid Safety Concerns for Female Inmates
U.S. Treasury Mobilises New $20 Billion Debt Facility to Stabilise Argentina
French Business Leaders Decry Budget as Macron’s Pro-Enterprise Promise Undermined
Trump Claims Modi Pledged India Would End Russian Oil Imports Amid U.S. Tariff Pressure
×