Tax Returns

During the G20 virtual summit that was held on October 12, leaders agreed to work together in order avoid a humanitarian disaster in Afghanistan as the EU pledged a 1.2-billion-euro aid package. While Russia and China—who have been advocating engagement with the new government—were absent from the meeting, the meeting included leaders such as Recep Tayyip Erdogan and Narendra Modi. This aid package announcement is a welcome development and could not have come sooner given the dire situation in Afghanistan at the moment.
Despite appeals from the Taliban, Afghanistan’s international reserve funds worth $9 billion are still frozen and the IMF is also continuing its suspension of $400 million in currency reserves. Due to this capital shortage, the Afghan economy is on its knees and the banking system is near collapse. Thousands of government employees have not been given their salaries, which has, in turn, paralysed all economic activity. The Taliban has been seeking humanitarian aid on an urgent basis, but has also maintained that it should not be conditional. Given the US’ uncompromising stance, it remains to be seen if sanctions will be lifted any time soon.
However, it was encouraging to see leaders at the summit recognise the seriousness of the situation. Even PM Modi stated that the international community must ensure that Afghanistan has immediate and unhindered access to humanitarian assistance. This is what Islamabad has maintained all along, and it is good to see other actors realise the need to engage with the new government in order to minimise the ongoing suffering of the Afghan population.
Engaging the Taliban to help stabilise Afghanistan does not translate into recognition or conferring legitimacy. The Italian Prime Minister also echoed these sentiments as he rightly pointed out that addressing the humanitarian crisis would require contacts with the Taliban as there is no other alternative. As far as recognition is concerned, the Taliban will be judged by their deeds and not mere words. The immediate priority however, is to salvage whatever is left of Afghanistan’s institutions and the banking system.