SIGAR: US Aid Suspension Will Deepen Afghanistan’s Economic Crisis

SIGAR also said that the US government might want to consider reviewing the possibility of returning the $4 billion to Afghanistan.

The Special Inspector General for Afghanistan Reconstruction (SIGAR), in its 66th report to the US Congress, highlighted President Trump’s directive to suspend US aid for 90 days.

According to the report, the “Taliban’s” interference in humanitarian aid distribution and the ban on women working in aid organizations have further deepened Afghanistan’s economic crisis.

SIGAR also said that the US government might want to consider reviewing the possibility of returning the $4 billion to Afghanistan.

However, Afghanistan’s Ministry of Economy has rejected SIGAR’s report, calling on the US to return Afghanistan’s frozen assets to its central bank.

Abdul Rahman Habib, the spokesperson for the Ministry of Economy, stated: “In addition to US economic sanctions and restrictions, approximately $9 billion of Afghanistan’s foreign reserves remain frozen, which has severely impacted the country’s economy. Any allocation, use, or action by the US regarding these assets is unacceptable. We urge the international community to return this money to Afghanistan’s central bank.”

Meanwhile, the US Secretary of State, in a televised interview, defended the 90-day suspension of foreign aid, emphasizing that some aid might be resumed or partially disbursed after a full review.

US Secretary of State Marco Rubio said: “And ultimately our foreign aid has to be a tool that we use to advance the national interest.  The US Government is not a charity.  It spends money on behalf of our national interest.”

At the same time, some economic experts warn that halting US aid will exacerbate poverty in Afghanistan and stress that the Taliban government and the US must negotiate a solution to address this crisis.

Mohammad Asif Stanikzai, an economic analyst, said: “In recent months, international criticism of Afghanistan has intensified, particularly regarding the ban on women’s employment and girls’ education. This issue has led to the suspension of foreign aid. A legitimate solution must be found to allow international organizations to continue providing assistance.”

Abdul Nasir Rashtia, another economic expert, said: “Humanitarian organizations that were assisting people had employed a large number of Afghan citizens, providing them with stable incomes. With the suspension of these organizations’ activities, many people have lost their jobs, further increasing poverty levels.”

The SIGAR report also stated that its operations are scheduled to completely shut down by January 31, 2026.

SIGAR: US Aid Suspension Will Deepen Afghanistan’s Economic Crisis