Beautiful Virgin Islands

Saturday, Feb 22, 2025

Where does the Taliban get its money and who's funding the militant group in Afghanistan?

Where does the Taliban get its money and who's funding the militant group in Afghanistan?

Afghanistan, among poorest nations in the world, is heavily dependent on American aid
The Taliban, on the heels of a steady, monthslong military blitz, retook control of Afghanistan last week, just four months after President Biden announced he would withdraw U.S. troops from the embattled nation and nearly 20 years after the militant group was first ousted.

One of the biggest questions the Taliban has faced after sweeping so quickly into power is how it got the cash to seize control and govern the country.

Afghanistan, already one of the poorest countries in the world, is heavily dependent on American aid. About 80% of the nation's budget is funded by the U.S. and other international donors, according to John Sopko, the special inspector general for Afghanistan reconstruction.

Within days of the Taliban consolidating power in Kabul, the Treasury Department froze Afghan government reserves stored in U.S. banks, depriving the group of billions of dollars in aid.

But it's unclear how effective the Treasury's restrictions will ultimately be: The Taliban operates largely outside the confines of the global financial system.

"They're awash with cash," Gretchen Peters, executive director of the Center on Illicit Networks and Transnational Organized Crime, told NPR. "The Taliban has been earning far more from trafficking drugs and other illicit activity, ranging from extortion rackets to timber trafficking, artisanal mining, kidnapping schemes, for almost two decades now."

There are different factions of the Taliban: Some, in heavy drug-producing areas in the south and west of Afghanistan such as Kandahar and Helmand, are more dependent on the drug trade to finance their operation. But others, like the ones located in the east and southeast, tend to make their money in other ways, including extortion, kidnapping and timber trafficking, Peters said.

While it's difficult to know precisely how much money the Taliban brings in each year, a recent United Nations report estimated that it's somewhere between $300 million and $1.6 billion.

"The primary sources of Taliban financing remain criminal activities, including drug trafficking and opium poppy production, extortion, kidnapping for ransom, mineral exploitation and revenues from tax collection in areas under Taliban control or influence," the report said.

Hanif Sufizada, who studied the Taliban's finances as an economic policy analyst at the Center for Afghanistan Studies, projected the group got about $416 million from drugs – Afghanistan accounted for roughly 84% of global opium production over the past five years according to the United Nations – and about $400 million from the mining of iron ore, marble, copper, gold, zinc and other metals and rare-earth minerals.

The group imposes a 10% tax on every link in the drug production chain, according to a report from the Afghanistan Research and Evaluation Unit, an independent research organization in Kabul, including on the farmers who grow the poppy, the main ingredient in opium, the labs that convert it into a drug and the traders who move the final product out of the nation.

The militant group received another $160 million through extortion and taxes; $240 million from private donors and international institutions, many of which are located in Persian Gulf Countries; $240 million from everyday consumer exports that are used to launder illicit money, such as auto parts and reassembled vehicles; and $80 million from real estate.

It's unclear whether the U.S. plans to impose additional financial sanctions on Afghanistan to target the Taliban.

Asked Tuesday what actions the U.S. intends to take to ensure the safety of women in Afghanistan, White House national security adviser Jake Sullivan said, "There are obviously issues related to sanctions." He declined to elaborate further.

"I want to be able to have our team communicate directly to the Taliban both what the costs and disincentives are for certain types of action and what our expectations are," Sullivan said.
Newsletter

Related Articles

Beautiful Virgin Islands
0:00
0:00
Close
Good News: Senate Confirms Kash Patel as FBI Director
Officials from the U.S. and Hungary Engage in Talks on Economic Collaboration and Sanctions Strategy
James Bond Franchise Transitions to Amazon MGM Studios
Technology Giants Ramp Up Lobbying Initiatives Against Strict EU Regulations
Alibaba Exceeds Quarterly Projections Fueled by Growth in Cloud and AI
Tequila Sector Faces Surplus Crisis as Agave Prices Dive Sharply
Residents of Flintshire Mobile Home Park Grapple with Maintenance Issues and Uncertain Future
Ronan Keating Criticizes Irish Justice System Following Fatal Crash Involving His Brother
Gordon Ramsay's Lucky Cat Restaurant Faces Unprecedented Theft
Israeli Family Mourns Loss of Peace Advocate Oded Lifschitz as Body Returned from Gaza
Former UK Defense Chief Calls for Enhanced European Support for Ukraine
Pope Francis Admitted to Hospital in Rome Amid Rising Succession Speculation
Senate Republican Leader Mitch McConnell, at the age of 83, Declares His Retirement.
Whistleblower Reveals Whitehall’s Focus on Kabul Animal Airlift Amid Crisis
Politicians Who Deliberately Lie Could Face Removal from Office in Wales
Scottish Labour Faces Challenges Ahead of 2026 Holyrood Elections
Leftwing Activists Less Likely to Work with Political Rivals, Study Finds
Boris Johnson to Host 'An Evening with Boris Johnson' at Edinburgh's Usher Hall
Planned Change in British Citizenship Rules Faces First Legal Challenge
Northumberland Postal Worker Sentenced for Sexual Assaults During Deliveries
British Journalist Missing in Brazil for 11 Days
Tesco Fixes Website Glitch That Disrupted Online Grocery Orders
Amnesty International Critiques UK's Predictive Policing Practices
Burglar Jailed After Falling into Home-Made Trap in Blyth
Sellafield Nuclear Site Exits Special Measures for Physical Security Amid Ongoing Cybersecurity Concerns
Avian Influenza Impact on Seals in Norfolk: Four Deaths Confirmed
First Arrest Under Scotland's Abortion Clinic Buffer Zone Law Amidst International Controversy
Meghan Markle Rebrands Lifestyle Venture as 'As Ever' Ahead of Netflix Series Launch
Inter-Island Ferry Services Between Guernsey and Jersey Set to Expand
Significant Proportion of Cancer Patients in England and Wales Not Receiving Recommended Treatments
Final Consultation Launched for Vyrnwy Frankton Power Line Project
Drug Misuse Deaths in Scotland Rise by 12% in 2023
Failed £100 Million Cocaine Smuggling Operation in the Scottish Highlands
Central Cee Equals MOBO Awards Record; Bashy and Ayra Starr Among Top Honorees
EastEnders: Four Decades of Challenging Social Norms
Jonathan Bailey Channels 'Succession' in Bold Richard II Performance
Northern Ireland's First Astronaut Engages in Rigorous Spacewalk Training
Former Postman Sentenced for Series of Sexual Offences in Northumberland
Record Surge in Anti-Muslim Hate Crimes Across the UK in 2024
Omagh Bombing Inquiry Concludes Commemorative Hearings with Survivor Testimonies
UK Government Introduces 'Ronan's Law' to Combat Online Knife Sales to Minors
Metal Detectorists Unearth 15th-Century Coin Hoard in Scottish Borders
Woman Charged in 1978 Death of Five-Year-Old Girl in South London
Expanding Sinkhole in Godstone, Surrey, Forces Evacuations and Road Closures
Bangor University Announces Plans to Cut 200 Jobs Amid £15 Million Savings Target
British Journalist Charlotte Peet Reported Missing in Brazil
UK Inflation Rises to 3% in January Amid Higher Food Prices and School Fees
Starmer Defends Zelensky Amidst Trump's 'Dictator' Allegation
Zelensky Calls on World Leaders to Back Peace Efforts in Light of Strains with Trump
UK Prime minister, Mr. Keir Starmer, has stated that any peace agreement aimed at ending the conflict in Ukraine "MUST" include a US security guarantee to deter Russian aggression
×