Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

Where does the Taliban get its money and who's funding the militant group in Afghanistan?

Where does the Taliban get its money and who's funding the militant group in Afghanistan?

Afghanistan, among poorest nations in the world, is heavily dependent on American aid
The Taliban, on the heels of a steady, monthslong military blitz, retook control of Afghanistan last week, just four months after President Biden announced he would withdraw U.S. troops from the embattled nation and nearly 20 years after the militant group was first ousted.

One of the biggest questions the Taliban has faced after sweeping so quickly into power is how it got the cash to seize control and govern the country.

Afghanistan, already one of the poorest countries in the world, is heavily dependent on American aid. About 80% of the nation's budget is funded by the U.S. and other international donors, according to John Sopko, the special inspector general for Afghanistan reconstruction.

Within days of the Taliban consolidating power in Kabul, the Treasury Department froze Afghan government reserves stored in U.S. banks, depriving the group of billions of dollars in aid.

But it's unclear how effective the Treasury's restrictions will ultimately be: The Taliban operates largely outside the confines of the global financial system.

"They're awash with cash," Gretchen Peters, executive director of the Center on Illicit Networks and Transnational Organized Crime, told NPR. "The Taliban has been earning far more from trafficking drugs and other illicit activity, ranging from extortion rackets to timber trafficking, artisanal mining, kidnapping schemes, for almost two decades now."

There are different factions of the Taliban: Some, in heavy drug-producing areas in the south and west of Afghanistan such as Kandahar and Helmand, are more dependent on the drug trade to finance their operation. But others, like the ones located in the east and southeast, tend to make their money in other ways, including extortion, kidnapping and timber trafficking, Peters said.

While it's difficult to know precisely how much money the Taliban brings in each year, a recent United Nations report estimated that it's somewhere between $300 million and $1.6 billion.

"The primary sources of Taliban financing remain criminal activities, including drug trafficking and opium poppy production, extortion, kidnapping for ransom, mineral exploitation and revenues from tax collection in areas under Taliban control or influence," the report said.

Hanif Sufizada, who studied the Taliban's finances as an economic policy analyst at the Center for Afghanistan Studies, projected the group got about $416 million from drugs – Afghanistan accounted for roughly 84% of global opium production over the past five years according to the United Nations – and about $400 million from the mining of iron ore, marble, copper, gold, zinc and other metals and rare-earth minerals.

The group imposes a 10% tax on every link in the drug production chain, according to a report from the Afghanistan Research and Evaluation Unit, an independent research organization in Kabul, including on the farmers who grow the poppy, the main ingredient in opium, the labs that convert it into a drug and the traders who move the final product out of the nation.

The militant group received another $160 million through extortion and taxes; $240 million from private donors and international institutions, many of which are located in Persian Gulf Countries; $240 million from everyday consumer exports that are used to launder illicit money, such as auto parts and reassembled vehicles; and $80 million from real estate.

It's unclear whether the U.S. plans to impose additional financial sanctions on Afghanistan to target the Taliban.

Asked Tuesday what actions the U.S. intends to take to ensure the safety of women in Afghanistan, White House national security adviser Jake Sullivan said, "There are obviously issues related to sanctions." He declined to elaborate further.

"I want to be able to have our team communicate directly to the Taliban both what the costs and disincentives are for certain types of action and what our expectations are," Sullivan said.
Comments

Oh ya 3 year ago
And the real answer is they get their money from Pakistan. And who gives Pakistan money? well that would be the USA. The military industrial complex and the big banks need endless wars. Your kids dying in those wars mean nothing to them

Newsletter

Related Articles

0:00
0:00
Close
Unelected PM of the UK holds an emergency meeting because a candidate got voted in… which he says is a threat to democracy…
Farmers break through police barriers in Brussels.
Ukraine Arrests Father-Son Duo In Lockbit Cybercrime Bust
US Offers $15 Million For Info On Leaders Of Cybercrime Group Lockbit
Apple warns against drying iPhones with rice
Alexei Navalny: UK sanctions Russian prison chiefs after activist's death
German economy is in 'troubled waters' - ministry
In a recent High Court hearing, the U.S. argued that Julian Assange endangered lives by releasing classified information.
Tucker Carlson says Boris Johnson wants "a million dollars, in Bitcoin or cash, from Tucker Carlson to talk about Ukraine.
Russia is rebuilding capacity to destabilize European countries, new UK report warns
EU Commission wants anti-drone defenses at Brussels HQ
Von der Leyen’s 2nd-term pitch: More military might, less climate talk
EU Investigates TikTok for Child Safety Concerns
EU Launches Probe Into TikTok Over Child Protection Under Digital Content Law
EU and UK Announce Joint Effort on Migration
Ministers Confirm Proposal to Prohibit Mobile Phone Usage in English Schools
Avdiivka - Symbol Of Ukrainian Resistance Now In Control Of Russian Troops
"Historic Step": Zelensky Signs Security Pact With Germany
"Historic Step": Zelensky Signs Security Pact With Germany
Russian opposition leader Alexey Navalny has died at the Arctic prison colony
Tucker Carlson grocery shopping in Russia. This is so interesting.
France and Germany Struggle to Align on European Defense Strategy
‘A lot higher than we expected’: Russian arms production worries Europe’s war planners
Greece Legalizes Same-Sex Marriage and Adoption Rights
Russia "Very Close" To Creating Cancer Vaccines, Says Vladimir Putin
Hungarian Foreign Minister: Europeans will lose Europe, the Union's policy must change drastically
Microsoft says it caught hackers from China, Russia and Iran using its AI tools
US Rejects Putin's Ceasefire Offer in Ukraine
The Dangers of Wildfire Smoke and Self-Protection Strategies
A Londoner has been arrested for expressing his Christian beliefs.
Chinese Women Favor AI Boyfriends Over Humans
Greece must address role in migrant vessel disaster that killed 600: Amnesty
Google pledges 25 million euros to boost AI skills in Europe
Hungarian President Katalin Novák Steps Down Amid Pardon Controversy
Activist crashes Hillary Clinton's speech, calls her a 'war criminal.'
In El Salvador, the 'Trump of Latin America' stuns the world with a speech slamming woke policing after winning a landslide election
Trudeau reacts to Putin's mention of Canadian Parliament applauding a former Ukrainian Nazi in his interview with Tucker Carlson.
The Spanish police blocked the farmers protest. So the farmers went out and moved the police car out of the way.
Volodymyr Zelenskiy fires top Ukraine army commander
Tucker Carlson's interview with Vladimir Putin raises EU concerns
Finnish Airline, Finnair, is voluntarily weighing passengers to better estimate flight cargo weight
Russia's Economy Expands by 3.6% Due to Increased Military Spending
Ukraine MPs Vote To Permit Use Of Dead Soldiers' Sperm
German Princess Becomes First Aristocrat To Pose Naked On Playboy Cover
UK’s King Charles III diagnosed with cancer
EU's Ursula von der Leyen Confronts Farmer Protests Amid Land Policy Debates
Distinguishing Between Harmful AI Media and Positive AI-Generated Content: A Crucial Challenge for the EU
Tucker Carlson explains why he interviewed Putin
Dutch farmers are still protesting in the Netherlands against the government, following the World Economic Forum's call for 'owning nothing.'
Hungarian Prime Minister Viktor Orbán stands up for European farmers and says, 'Brussels is suffocating European farmers.
×