Britain to press G7 to take tough stance against Taliban

The crisis in Afghanistan is set to top the agenda of the virtual G7 summit on Tuesday with discussion of co-ordinated evacuations, humanitarian assistance for refugees and Britain's call for the imposition of sanctions on the Taliban in the wake of its conquest of Afghanistan.

According to an unidentified British official quoted by Reuters, Britain holds that the group of seven advanced economies – which includes the US, France, Italy, Germany, Japan and Canada – should also withhold aid if the Taliban commit human rights violations and permit Afghanistan to become a base for radicals.

Asked if he would support the British call for sanctions if the Taliban committed abuses, US president Joe Biden said: "The answer is yes. It depends on the conduct [of the Taliban]."

Dealings with the Taliban are complicated as they were designated a terrorist organisation by the UN Security Council in 1999. They have not been so designated by the US, however, and the US Congressional Research Service wrote on August 17th that this "may inform assessments of US policy".

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So far Washington has adopted a tough approach. As the Afghan economy, which tripled in size since the Taliban last ruled, has edged towards crisis, the US froze $9 billion-$10 billion in Afghan central bank funds deposited in the Federal Reserve Bank of New York and halted shipments of dollars and the delivery of about $1 billion in humanitarian aid allocated for 2021. Other foreign aid pledged in 2020 has been suspended.

The International Monetary Fund withheld a payment of $460 million due last month.

Grant dependency

Hard currencies no longer flow into Afghanistan following the departure of foreign forces, embassies, some humanitarian agencies and businesses. The value of the currency has fallen to record lows.

The World Bank reports the economy still depends on foreign grants to finance 75 per cent of public spending while the Congressional Research Service said that this year 90 per cent of Afghans were living on less than $2 a day and warned against withdrawing US support.

The Taliban cannot run the country on the revenues it gets from opium smuggling, extortion, transit dues and taxes, as well as reported central bank holdings of only $362 million and $160 million in gold bars and silver coins.

Fearing the consequences of collapse, the World Food Programme, which still operates in Afghanistan, has launched an emergency appeal for funds: "Currently, one in three people are hungry and two million children are malnourished. With drought, pandemic and conflict, the food security situation will continue to worsen, and hunger will rise," it said.