US aid to Afghanistan remains the subject of increasing controversy, as questions increase about whether this money reaches the Taliban or if it is used for other purposes.
As the controversy escalated, US President Donald Trump declared that US aid was reaching the Taliban, “something that should not happen,” threatening to cut off aid to Afghanistan.
And via AAmerican billionaire Elon Musk, who is close to Trump, also expressed his astonishment on the “X” platform, saying, “Are we really sending American taxpayers’ money to the Taliban?”
Amid these conditions, American aid remains an important factor in the continuation of humanitarian activities in Afghanistan.
In this context, experts wonder about the impact of cutting aid on the Afghan economy.
International aid
Despite political statements about reducing aid, the United Nations Office for the Coordination of Humanitarian Aid continues with plans to provide support to 16.8 million people in Afghanistan for the year 2025, with a budget of $2.42 billion, a large portion of which comes from America.
According to a report by the Sikar Department (Office of the Inspector General for Reconstruction in Afghanistan), $3.5 billion in frozen assets of the Afghan Central Bank held by the United States were used, in addition to other funds disbursed for purposes such as evacuations and resettlement of Afghans in the United States. After the withdrawal of US forces in August 2021.
The Taliban and its demands from America
For his part, Sher Abbas Stanekzi, the Afghan Deputy Foreign Minister, called on Trump to “forget the Biden period,” demanding a different American policy than the one followed by the Joe Biden administration, opening the American embassy in Kabul, lifting sanctions on Afghanistan, and returning the frozen funds.
In a special statement, Hamdallah Fitrat, deputy spokesman for the caretaker government, confirmed that the government did not receive any money from the United States, indicating that the money being talked about are in fact American expenses related to the evacuation of American forces or the resettlement of the Afghans who fled with them.
He added, “America’s claims about providing billions of dollars in aid to Afghanistan are completely incorrect, and we categorically reject them. The truth is that America did not provide the Islamic Emirate not even a single rupee. Rather, it seized billions of dollars from the Afghan people and froze them.”
Economic impact of aid
Economists confirm that cutting US aid will have direct negative effects on the Afghan economy.
According to economic expert Siddiqa Zaki, the aid has contributed to reducing the number of people suffering from a food crisis from 21 million people in 2021 to about 11 million in 2023, which is considered a noticeable improvement.
Zaki pointed out in an interview with Al Jazeera Net that aid cannot solve all of Afghanistan’s problems, as it is only part of the temporary solutions, as the country still suffers from multiple problems, such as climate change and migration.
She added, “Although international aid has helped improve the food situation in Afghanistan, there are deeper problems, such as climate change and accumulated economic problems, which cannot be completely resolved through aid.”
As for former professor of economics at Kabul University, Zia Shafaei, he believes that the Afghan economy is “accustomed” to foreign aid, and any cutting of this aid will have an “immediate” and serious impact on the economy.
He told Al Jazeera Net, “The Afghan Central Bank’s policy has relied on selling the dollar that arrives through foreign aid to maintain the stability of the Afghan currency. If this aid stops, we will see a sharp decline in the value of the currency, which will lead to inflation and higher prices, and will consequently negatively affect the lives of citizens.”
Zia Shafaei commented, “The Afghan government does not have sufficient reserves to continue supporting the currency, as was the case with foreign aid. The collapse of the value of the currency will have a direct impact on people’s lives and will lead to a deterioration in the living situation.”
The issue of US aid to Afghanistan remains complex, as opinions differ between those who see it as necessary for humanitarian and economic stability, and those who see it as being used for political purposes.
In light of the deep economic challenges facing Afghanistan, experts wonder how cutting aid will affect the internal situation, especially at the level of the currency and inflation, and in the end this issue remains the subject of ongoing debate among the parties concerned.
