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WRAPUP 7-Taliban grapple with Afghan economy in chaos, humanitarian crisis

reuters.com · 09/01/2021 03:39
WRAPUP 7-Taliban grapple with Afghan economy in chaos, humanitarian crisis

Adds central bank talks, paras 5 and 16

Prices soar, currency plunges, shops close

Taliban struggle to keep banks, services, medical care running

Crowds line up outside Kabul banks for scarce cash

Thousands flee to border crossings with Pakistan, Iran

- Afghanistan's new Taliban rulers struggled to keep the country functioning on Wednesday after the final withdrawal of U.S. forces, with foreign donors alarmed about an impending humanitarian crisis.

Two weeks since the Taliban's sweep into the capital Kabul brought a chaotic end to 20 years of warfare, the Islamist militants have yet to name a new government or reveal how they intend to rule.

In an administrative vacuum, prices have soared and crowds have gathered at banks to withdraw cash.

Heavily-armed fighters have imposed control on Kabul, but Taliban officials were grappling with keeping hospitals and government machinery running following the end of a huge airlift of foreigners and Afghans who had helped Western forces.

The new, Taliban-appointed central bank head has sought to reassure banks the group wants a fully-functioning financial system, but has so far given little detail on how it will supply funds for it, bankers familiar with the matter said. nL1N2Q31S6

Qatar's Al Jazeera television reported that Qatari technical experts had arrived at the Taliban's request to discuss resuming operations at Kabul airport, currently inoperable.

The foreign minister of neighbouring Pakistan, which has close ties to the Taliban, said he expected Afghanistan to have a new "consensus government" within days.

Meanwhile, people fearful of life under Taliban rule rushed to the borders.

And in Panjshir province, members of local militias and remnants of former military units were still holding out under the leadership of Ahmad Massoud. Senior Taliban leader Amir Khan Motaqi called on them to put down weapons and negotiate.

"The Islamic Emirate of Afghanistan is home for all Afghans," he said in a speech.

The Taliban have declared an amnesty for all Afghans who worked with foreign forces during the war that started when they were ousted from power in 2001 over their refusal to hand over al Qaeda leader Osama bin Laden after the Sept. 11 attacks.

Taliban leaders have called on Afghans to return home and help rebuild. They have promised to protect human rights in an effort to present a more moderate face than their first government, which enforced radical Islamic law, including banning women from education and employment.


But the more immediate concern for them now is staving off economic collapse. Afghanistan desperately needs money, and the Taliban are unlikely to get swift access to the roughly $10 billion in assets mostly held abroad by the Afghan central bank.

The Taliban have ordered banks to re-open but strict weekly limits on withdrawals have been imposed.

Acting central bank governor Haji Mohammad Idris met members of the Afghanistan Banks Association and other financiers this week, said two bankers who attended the meeting. The militant group was working to find solutions for liquidity and rising inflation, they quoted Idris as saying.

"They were very charming and asked banks what their concerns were," said one of the bankers who requested anonymity.

Long lines have formed at banks, the currency is sinking, inflation is rising, and many offices and shops remain shut.

"Everything is expensive now, prices are going up every day," said Kabul resident Zelgai.

Outside the capital, humanitarian organizations have warned of impending catastrophe as severe drought has hit farmers and forced thousands of rural poor to seek shelter in the cities. But foreign donors are unsure about whom to speak to.

Taliban officials have said the problems will ease once a new government is in place, and have appealed to other countries to maintain economic relations.

Bankers outside Afghanistan said it would be difficult to get the financial system running again without the specialists who joined the exodus. "I don't know how they will manage it because all the technical staff, including senior management, has left the country," one banker said.


More than 123,000 people were evacuated from Kabul in the U.S.-led airlift after the Taliban seized the city in mid-August but tens of thousands of Afghans at risk remained behind.

With Kabul's airport out of action, efforts to help Afghans fearful of the Taliban focused on arranging safe passage across the borders with Iran, Pakistan and central Asia. nL1N2Q237G

At Torkham, a crossing with Pakistan just east of the Khyber Pass, a Pakistani official said: "A large number of people are waiting on the Afghanistan side for the opening of the gate."

Uzbekistan's border with northern Afghanistan remained shut.

Britain and India held separate talks with Taliban officials in Doha amid fears that up to half a million Afghans could flee. nL8N2Q11NV

The U.N. refugee agency UNHCR said on Wednesday Afghans have so far largely stayed within Afghanistan and so far only small numbers had fled to neighbouring countries. It called for $300 million in international funding for the humanitarian emergency.

Washington said it would use its leverage, including access to the global marketplace, over the Taliban as it seeks to get the remaining Americans and allies out of Afghanistan.

The Taliban also said it had surrounded forces in Panjshir, the only province still resisting its rule, and it called on them to negotiate a settlement. Taliban leader Motaqi urged the fighters to lay down their weapons.

Some Taliban leaders mocked the United States.

"Your power is gone, your gold is gone," Anas Haqqani, who has emerged as one of the group's most prominent leaders, said on Twitter.

Haqqani posted a photograph of himself holding discarded prison shackles as he toured Bagram prison, where he spent years kept in solitary confinement by U.S. forces.

EXCLUSIVE-Taliban launch charm offensive with Afghan banks amid funding fearsnL1N2Q31S6

'Didn't need to happen': Pentagon seeks answers for deadly attacknL1N2PY1Z5

FACTBOX-Recent major attacks linked to Islamic State in AfghanistannL1N2PX1R3

FACTBOX-What is Islamic State in Afghanistan?nL1N2PX1W7

FACTBOX-Evacuations from Afghanistan by countrynL1N2PX0O4

GRAPHIC: Chaos in Kabulhttps://tmsnrt.rs/3stVpcj

EXPLAINER-What happens now that U.S. troops have left Afghanistan?nL1N2PY294

GRAPHIC: Afghan refugee flows since 1980https://tmsnrt.rs/3BsKiDC

New era for Afghanistan starts with long queues, rising pricesnL8N2PY5CI

EXCLUSIVE-In call before Afghan collapse, Biden pressed Ghani to ‘change perception'nL1N2Q222U

Afghanistan central bank board member urges Biden, IMF to release fundsnL4N2Q31YG

(Reporting by Reuters bureaus; Writing by Angus MacSwan and William Maclean;
Editing by Mark Heinrich)

((clarence.fernandez@thomsonreuters.com; +6568703861; RM:clarence.fernandez.thomsonreuters.com@thomsonreuters.net))