Washington: President Joe Biden signed an executive order on Friday allowing USD 7 billion in frozen assets from Afghanistan’s central bank to be distributed for humanitarian assistance in the war-torn country and to victims of the 9/11 terror attacks, the White House said.
The funds, held in the US, were frozen after the Taliban seized Kabul in August last year. Half the remaining assets — USD 3.5 billion — will go toward providing relief inside Afghanistan.
The executive order will require US financial institutions to facilitate access to USD 3.5 billion of assets for relief measures in Afghanistan.
The remaining USD 3.5 billion would remain in the United States and will be used to fund the ongoing litigation by US victims of terrorism, the White House release said.
Many family members of people killed on 9/11 have sued the Taliban and al-Qaeda for their role in facilitating and planning the terror attack that killed nearly 3,000 people.
“The Executive Order is designed to provide a path for the funds to reach the people of Afghanistan, while keeping them out of the hands of the Taliban and malicious actors. The United States has sanctions in place against the Taliban and the Haqqani network, including for activities that threaten the safety of Americans such as holding our citizens hostage,” it said.
Afghanistan has more than USD 10 billion in reserves, including just over USD 7 billion in reserves held in the United States.
The rest of the funds remain largely with countries such as Germany, the United Arab Emirates and Switzerland.
“While this order will help preserve a substantial portion of Afghanistan’s reserves to benefit the Afghans, we understand there are no easy solutions for Afghanistan’s economic challenges, which have been exacerbated by the Taliban’s forced takeover of the country,” the release added.
The Taliban has repeatedly called on the US to release the funds, saying it was needed to boost the war-ravaged nation’s economy.
Amidst harsh winter, nearly 23 million people in Afghanistan — more than half the population — are facing extreme levels of hunger, according to the United Nations.
The US does not recognise the Taliban as the legitimate government in Afghanistan and has designated the outfit as a ‘terrorist organisation’.
Friday’s executive orders come as the US government faces a court deadline to state its position on pending attempts by 9/11 families to seize the Afghan funds.
Husain Haqqani, a former Pakistan ambassador to the US who is currently at the Hudson Institute think tank, slammed the Biden administration for their latest move.
The Taliban’s claim to assets of a government they fought to topple over was never justified.
Nearly 80 per cent of Afghanistan’s previous government’s budget came from funding from the international community.
When that was snapped following the Taliban takeover last year, the country’s economy spiralled into a tailspin.
The United Nations has said 96 per cent of Afghans could fall into poverty in 2022, with millions on the brink of famine. PTI LKJ VM AKJ VM VM
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