SIGAR: Cash Transfers Stabilize Afghanistan’s Economy

The Special Inspector General for Afghanistan Reconstruction (SIGAR), in its latest report, has described the transfer of cash to Afghanistan as a lifeline for the country’s economy.

In the report, SIGAR highlights the problems caused by disruptions in international banking transfers and the liquidity crisis that followed the return of the Islamic Emirate. It said that the United Nations has been forced to physically transfer cash to Afghanistan.

The report also said that this aid has benefited the Islamic Emirate. However, officials of the Islamic Emirate have consistently denied any involvement in these funds.

The Ministry of Economy of the Islamic Emirate has responded to the report, calling SIGAR’s assessment unrealistic.

Abdul Rahman Habib, spokesperson for the Ministry of Economy, said: “The Ministry of Economy considers SIGAR’s report, which negatively assesses Afghanistan’s economic situation, far from the actual reality.”

“The best option is to credit the funds into the United Nations’ or any relevant organization’s bank accounts, and through those accounts, allocate the aid to the people of Afghanistan,” said Siar Quraishi, an economic expert.

Other economic experts have also provided diverse opinions on SIGAR’s latest report.

“The cash packages transferred to Afghanistan by the United Nations have had a significant impact on price stability, exchange rates, and resolving the liquidity problem in the country,” said Mir Shakeb Mir, an economic expert.

“You see, SIGAR always publishes reports in a way that contains a small amount of truth, but also hides part of the truth when releasing its report,” said Abdul Ghaffar Nizami, another economic expert.

According to SIGAR statistics, in 2022 and 2023, the United Nations transferred a total of $3.6 billion in cash to Afghanistan, which amounts to about $1.8 billion per year. These funds have been kept in designated UN accounts in private banks.