Saudi Press

Saudi Arabia and the world
Wednesday, Jul 09, 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

Saudi Press
0:00
0:00
Close
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
AI Raises Alarms Over Long-Term Job Security
Saudi Arabia Maintains Ties with Iran Despite Israel Conflict
Russia Formally Recognizes Taliban Government in Afghanistan
Mediators Edge Closer to Israel-Hamas Ceasefire Agreement
Emirates Airline Expands Market Share with New $20 Million Campaign
House Oversight Committee Subpoenas Former Jill Biden Aide Amid Investigation into Alleged Concealment of President Biden's Cognitive Health
Amazon Reaches Major Automation Milestone with Over One Million Robots
Meta Announces Formation of Ambitious AI Unit, Meta Superintelligence Labs
China Unveils Miniature Insect-Like Surveillance Drone
Marc Marquez Claims Victory at Dutch Grand Prix Amidst Family Misfortune
Iran Executes Alleged Israeli Spies and Arrests Hundreds Amid Post-War Crackdown
Trump Asserts Readiness for Further Strikes on Iran Amid Nuclear Tensions
Iran's Parliament Votes to Suspend Cooperation with Nuclear Watchdog
Trump Announces Upcoming US-Iran Meeting Amid Controversial Airstrikes
Trump Moves to Reshape Middle East Following Israel-Iran Conflict
NATO Leaders Endorse Plan for Increased Defence Spending
U.S. Crude Oil Prices Drop Below $65 Amid Market Volatility
Explosions Rock Doha as Iranian Missiles Target Qatar
“You Have 12 Hours to Flee”: Israeli Threat Campaign Targets Surviving Iranian Officials
Oman Set to Introduce Personal Income Tax, First in Gulf
Germany and Italy Under Pressure to Repatriate $245bn of Gold from US Vaults
Iran Intensifies Crackdown on Alleged Mossad Operatives After Sabotage Claims
Trump Praises Iran’s ‘Very Weak’ Response After U.S. Strikes and Presses Israel to Pursue Peace
WATCH: Israeli forces show the aftermath of a massive airstrike at Iran's Isfahan nuclear site
We have new information and breaking details to share about what is shaping up to be a historic air campaign tonight
Six Massive Bombs Dropped on Fordow; Trump: 'A Historic Moment for the U.S., Israel, and the World'
Fordow: Deeply Buried Iranian Enrichment Site in U.S.–Israel Crosshairs
United States Conducts Precision Strikes on Iran’s Nuclear Sites
US strikes Iran nuclear sites, Trump says
Pakistan to nominate Trump for Nobel Peace Prize.
Israel Confirms Assassination of Quds Force Commander in Tehran
16 Billion Login Credentials Leaked in Unprecedented Cybersecurity Breach
Senate hearing on who was 'really running' Biden White House kicks off
G7 Leaders Fail to Reach Consensus on Key Global Issues
Mass exodus in Tehran as millions try to flee following Trump’s evacuation order
Iranian Military Officers Reportedly Seek Contact with Reza Pahlavi, Signal Intent to Defect
Vietnam Emerges as Luxury Yacht Destination for Ultra‑Rich
China's Iranian Oil Imports Face Disruption Amid Escalating Middle East Tensions
Trump Demands Iran's Unconditional Surrender Amid Escalating Conflict
Israeli Airstrike Targets Iranian State TV in Central Tehran
President Trump is leaving the G7 summit early and has ordered the National Security Council to the Situation Room
Netanyahu Signals Potential Regime Change in Iran
Analysts Warn Iran May Resort to Unconventional Warfare
Iranian Regime Faces Existential Threat Amid Conflict
Energy Infrastructure Becomes War Zone in Middle East
Iran Conducts Ballistic Missile Launches Amid Heightened Tensions with Israel
Iran Signals Openness to Nuclear Negotiations Amid Ongoing Regional Tensions
Shock Within Iran’s Leadership: Khamenei’s Failed Plan to Launch 1,000 Missiles Against Israel
×