Aid agencies call for Afghan cash flows to be unblocked to relieve crisis

The latest western efforts to boost cash flows to Afghanistan will do little to tackle the country’s growing humanitarian crisis without wider reforms to get money to ordinary people, aid agencies have warned. Matt Reed, chief executive of the Aga Khan Foundation in the UK, said: “Sanctions and the freezing of the banking system have had a chilling effect. Even if a bank makes transfers, there is a liquidity problem, with not enough money circulating for the economy to function. It’s important that the banking sector steps up. We can’t do this without them.” International aid made up about 80 per cent of the previous Afghan government’s budget. David Pitts from Crown Agents Bank, which transfers money into Afghanistan for the Aga Khan Foundation, said: “It’s no good having all the best humanitarian efforts and actors trying to find solutions if the underlying economy is not operating. If you can’t import basic foodstuffs, fuel and medical equipment, all good efforts will be undermined.”