London Daily

Focus on the big picture.
Thursday, Jul 10, 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
Severe Heatwave Claims 2,300 Lives Across Europe
NVIDIA Achieves Historic Milestone as First Company Valued at $4 Trillion
Declining Beer Consumption Signals Cultural Shift in Germany
Linda Yaccarino Steps Down as CEO of X After Two Years
US Imposes New Tariffs on Brazilian Exports Amid Political Tensions
Azerbaijan and Armenia are on the brink of a historic peace deal.
Emails Leaked: How Passenger Luggage Became a Side Income for Airport Workers
Polish MEP: “Dear Leftists - China is laughing at you, Russia is laughing, India is laughing”
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Weinstein Victim’s Lawyer Says MeToo Movement Still Strong
U.S. Enacts Sweeping Tax and Spending Legislation Amid Trade Policy Shifts
Football Mourns as Diogo Jota and Brother André Silva Laid to Rest in Portugal
Labour Expected to Withdraw Support for Special Needs Funding Model
Leaked Audio Reveals Tory Aide Defending DEI Record
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
London Stock Exchange Faces Historic Low in Initial Public Offerings
A new online platform has emerged in the United Kingdom, specifically targeting Muslim men seeking virgin brides
Trump Celebrates Independence Day with B-2 Flyover and Signs Controversial Legislation
Boris Johnson Urges Conservatives to Ignore Farage
SNP Ordered to Update Single-Sex Space Guidance Within Days
Starmer Set to Reject Calls for Wealth Taxes
Stolen Century-Old Rolls-Royce Recovered After Hotel Theft
Macron Presses Starmer to Recognise Palestinian State
Labour Delayed Palestine Action Ban Over Riot Concerns
Swinney’s Tax Comments ‘Offensive to Scots’, Say Tories
High Street Retailers to Enforce Bans on Serial Shoplifters
Music Banned by Henry VIII to Be Performed After 500 Years
Steve Coogan Says Working Class Is Being ‘Ethnically Cleansed’
Home Office Admits Uncertainty Over Visa Overstayer Numbers
JD Vance Questions Mandelson Over Reform Party’s Rising Popularity
Macron to Receive Windsor Carriage Ride in Royal Gesture
Labour Accused of ‘Hammering’ Scots During First Year in Power
BBC Head of Music Stood Down Amid Bob Vylan Controversy
Corbyn Eyes Hard-Left Challenge to Starmer’s Leadership
London Tube Trains Suspended After Major Fire Erupts Nearby
Richard Kemp: I Felt Safer in Israel Under Attack Than in the UK
Cyclist Says Police Cited Human Rights Act for Riding No-Handed
China’s Central Bank Consults European Peers on Low-Rate Strategies
AI Raises Alarms Over Long-Term Job Security
Saudi Arabia Maintains Ties with Iran Despite Israel Conflict
Musk Battles to Protect Tesla Amid Trump Policy Threats
Air France-KLM Acquires Majority Stake in Scandinavian Airlines
UK Educators Sound Alarm on Declining Child Literacy
Shein Fined €40 Million in France Over Misleading Discounts
Brazil’s Lula Visits Kirchner During Argentina House Arrest
Trump Scores Legislative Win as House Passes Tax Reform Bill
Keir Starmer Faces Criticism After Rocky First Year in Power
DJI Launches Heavy-Duty Coaxial Quadcopter with 80 kg Lift Capacity
U.S. Senate Approves Major Legislation Dubbed the 'Big Beautiful Bill'
Largest Healthcare Fraud Takedown in U.S. History Announced by DOJ
×