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Exclusive-Cash airlifts planned to bypass Taliban and help Afghans

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© Reuters.

Robin Emmott. John O’Donnell. Jonathan Landay.

BRUSSELS/FRANKFURT/WASHINGTON (Reuters) – As desperate Afghans resort to selling their belongings to buy food, international officials are preparing to fly in cash for the needy while avoiding financing the Taliban government, according to people familiar with the confidential plans.

According to internal documents seen by Reuters, the planning for cash airlifts continues against the backdrop of a quickly collapsing economy that is in dire financial need. Diplomats still debate whether the West can ask the Taliban to make concessions.

With the Taliban’s approval, and without their involvement, the emergency funding could allow for U.S. Dollar bills to be flown into Kabul in order to distribute via banks, in less than $200, in an attempt at mitigating a humanitarian crisis caused by drought and political unrest.

According to two officials, in addition to coming up with cash for immediate relief, the donor countries are looking to create a “humanitarianplus” trust fund to cover salaries as well as keep schools and hospitals open.

To pay ever more food, many Afghans are selling off their belongings. According to the World Bank: 75% public spending was financed by grants funded by U.S.-led troops and international donors.

This is the West’s unconventional strategy. The West is eager to assist Afghanistan following two decades of war. It also wants to stop mass migration. But it’s reluctant to send money to Taliban. These Taliban seized power last August.

CASH DROPS

United Nations warns that fourteen million Afghans will starve. Mary-Ellen McGroarty is the U.N. World Food Programme Afghanistan Director. She warned that the country’s economy may collapse due to the cash crunch.

She said that many parents have given up food to ensure their kids eat.

Recent efforts by Western officials and diplomats have increased to create a cash source.

One person familiar with the matter said that about 10,000,000 Afghanis (roughly $110,000) have been distributed by United Nations World Food Programme via local banks. They plan to continue this trend.

Cash runs can be used to test larger dollar airshipments from Pakistan.

According to a diplomat, there are two options for bringing cash into the Afghan economic system. Both of these options are being considered.

According to the initial plan, the World Food Programme could fly in cash to distribute directly to consumers to purchase food. It would expand on an existing program on a smaller scale.

Second, cash would be flown into banks to hold funds on behalf of United Nations. This money could be used to pay the salaries of U.N. staff and other non-governmental organisations, said the diplomat.

Unknown third party claimed U.N. representatives had spoken with Afghan banks regarding opening up cash distribution channels.

According to a top European Union official, “If the country crashes, we all will suffer the consequences”. While no one would like to be forced to recognize the Taliban immediately, we must do so. It is not about whether… it’s how.

According to a spokesperson from the World Food Programme, it has helped more than 4,000,000 people since September. That includes food and cash. According to the spokesperson, the cash crunch was also impacting the truckers and millers with whom it collaborated.

NINE BILLION DOLLAR LEVERAGE

Two sources familiar with the subject say that the United States and Britain have also discussed the establishment of an international trust account to help fund local services and bypass the Afghan government.

Requests for comments from the Taliban regarding cash airlift plans were not answered immediately.

According to a spokesperson from the Treasury, it would accept humanitarian assistance via non-governmental international or independent organisations. It also said that it would sanction its leaders and “deny assets” to Taliban.

It has very little to fall on for the Kabul government. With $9 billion in assets frozen off-shore, the central bank has exhausted a large portion of its home reserves.

Shah Mehrabi is an official who was responsible for the supervision of the bank prior to the Taliban taking over.

“If Afghan importers are unable to pay for their shipment, the banks will begin to collapse, and food will become more scarce,” he stated.

However, there are also debates about attaching strings to cash withdrawals.

French and German officials have revealed their plans to use money as a lever to press the Taliban in a document published last month.

Officials stated that countries could demand recognition of political legitimacy and commitments from the Taliban in the report of two pages.

The note stated that the economic and trade levers were among the most powerful we have, raising concerns about the possibility of Afghanistan releasing its foreign reserves.

French and German diplomats also outline five demands they could make of Taliban officials in a diplomatic note.

These include: allowing Afghans to flee the country, “breaking all ties with… terrorist organizations”, humanitarian assistance, human rights respect, and creating an inclusive government.



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