Afghan economic collapse would benefit terrorists

UN Secretary General, Antonio Guterres has warned that an Afghan economic collapse would occur if assets weren’t unfrozen, saying the collapse would be beneficial to terrorist groups in the area.

"We need to find ways to avoid a situation that would be catastrophic for the people and, in my opinion, a source of instability, and an action, gift for terrorist groups still operating there," Guterres said. 

After the Taliban came into power, Afghanistan was cut off from its US$10 billion assets abroad and US$440 million in emergency reserves it has with the International Monetary Fund (IMF).

"At the present moment the UN is not even able to pay its salaries to its own workers," Guterres said.

Guterres’s comments came after Deborah Lyons, UN Secretary General’s special representative for Afghanistan, told the Security Council there would be “a severe economic downturn” if the funds are not released.

"The economy must be allowed to breathe for a few more months, giving the Taliban a chance to demonstrate flexibility and a genuine will to do things differently this time, notably from a human rights, gender, and counter-terrorism perspective," Lyons said.

The funds have been held from the group to have leverage over the Taliban, but Lyons said safeguards can be put on the money to ensure it is used correctly.