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.
AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
Satirical Sketch Sparks Political Spouse Feud in South Korea
Indonesia Quarry Collapse Leaves Multiple Dead and Missing
South Korean Election Video Pulled Amid Misogyny Outcry
Asian Economies Shift Away from US Dollar Amid Trade Tensions
Netflix Investigates Allegations of On-Set Mistreatment in K-Drama Production
US Defence Chief Reaffirms Strong Ties with Singapore Amid Regional Tensions
Vietnam Faces Strategic Dilemma Over China's Mekong River Projects
Malaysia's First AI Preacher Sparks Debate on Islamic Principles
Meta and Anduril Collaborate on AI-Driven Military Augmented Reality Systems
Russia's Fossil Fuel Revenues Approach €900 Billion Since Ukraine Invasion
Alcohol Industry Faces Increased Scrutiny Amid Health Concerns
U.S. Goods Imports Plunge Nearly 20% Amid Tariff Disruptions
Italy Faces Population Decline Amid Youth Emigration
Trump Accuses China of Violating Trade Agreement
OpenAI Faces Competition from Cheaper AI Rivals
Foreign Tax Provision in U.S. Budget Bill Alarms Investors
Russia Accuses Serbia of Supplying Arms to Ukraine
Gerry Adams Wins Libel Case Against BBC
EU Central Bank Pushes to Replace US Dollar with Euro as World’s Main Currency
U.S. Health Secretary Ends Select COVID-19 Vaccine Recommendations
Trump Warns Putin Is 'Playing with Fire' Amid Escalating Ukraine Conflict
India and Pakistan Engage Trump-Linked Lobbyists to Influence U.S. Policy
U.S. Halts New Student Visa Interviews Amid Enhanced Security Measures
Trump Administration Cancels $100 Million in Federal Contracts with Harvard
SpaceX Starship Test Flight Ends in Failure, Mars Mission Timeline Uncertain
King Charles Affirms Canadian Sovereignty Amid U.S. Statehood Pressure
EU Majority Demands Hungary Reverse Anti-LGBTQ+ Laws
Top Hotel Picks for 2025 Stays in Budapest Revealed
Iron Maiden Unveils 2025 Tour Setlist in Budapest
Chinese Film Week Opens in Budapest to Promote Cultural Exchange
Budapest Airport Launches Direct Flights to Shymkent
Von der Leyen Denies Urging EU Officials to Skip Budapest Pride
Alcaraz and Sinner Advance with Convincing Wins at Roland Garros
EU Ministers Lack Consensus on Sanctioning Hungary Over Rule of Law
EU Nations Urge Action Against Hungary's Pride Parade Ban
Putin's Helicopter Reportedly Targeted by Ukrainian Drones
U.S. Considers Withdrawing Troops from Europe
Russia Deploys Motorbike Squads in Ukraine Conflict
Critics Accuse European Court of Human Rights of Overreach
Spain Proposes 100% Tax on Non-EU Holiday Home Purchases
German Intelligence Labels AfD as Far-Right Extremist
Geert Wilders Threatens Dutch Coalition Over Migration Policy
Hungary Faces Multiple Challenges Amid EU Tensions and Political Shifts
Denmark Increases Retirement Age to 70, Setting a European Precedent
Any trade deal with US must be based on respect not threats', says EU commissioner
UK Leads in Remote Work Adoption, Averaging 1.8 Days a Week
Thirteen Killed in Russian Attacks Across Ukraine
High-Profile Incidents and Political Developments Dominate Global News
Netanyahu Accuses Western Leaders of 'Emboldening Hamas'
Ukraine and Russia Conduct Largest Prisoner Exchange of the War
×