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Home World News Asia

Taliban has ‘no legal right’ to US$4 billion Afghan fund

February 1, 2025
in Asia
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Taliban has ‘no legal right’ to US$4 billion Afghan fund
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The watchdog for US help to Afghanistan said the Taliban have no legal right to billions of dollars in funding set aside for the country because they are not recognised as its government and are under sanctions.

In its latest report issued on Friday, the Special Inspector General for Afghanistan Reconstruction also said President Donald Trump’s administration and Congress may want to examine returning nearly US$4 billion earmarked for Afghanistan to the “custody and control” of the US government.

In 2022, the US transferred US$3.5 billion in Afghan central bank assets previously frozen in America to the Swiss-based Fund for the Afghan People. The fund has grown to nearly US$4 billion since then, according to the inspector general.

Although no payments benefiting Afghans have been made, the fund is aimed at protecting and stabilising the economy on their behalf.

“The Taliban want these funds even though they have no legal right to them since they are not recognised by the United States as the government of Afghanistan, are on the US Specially Designated Global Terrorist list, and are under US and UN sanctions,” the report said.

US President Donald Trump holds at a letter from former President Joe Biden left for him in the drawer of the Resolute desk on the first day of his presidency. Photo: EPA-EFE

The report follows Trump’s decision to freeze foreign aid for 90 days pending reviews to determine whether they align with his policy goals.

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