Mystery of Taliban funds

Editorial: DAILY TIMES

The US special envoy to Afghanistan and Pakistan, Mr Richard Holbrooke, says that Taliban militants are receiving more funding from their sympathisers abroad than from Afghanistan’s illegal drug trade. This statement contradicts the sole Pakistani source that has been forthcoming on the subject: Governor NWFP Mr Owais Ghani thinks that the Taliban in FATA and other tribal areas are spending a budget of Rs 14 billion annually, and the money comes, primarily, from drugs smuggling from Afghanistan.

Mr Holbrooke says: “More money is coming from the Gulf than is coming from the drug trade to the Taliban”. He didn’t say it but he must mean: Iran, Oman, Saudi Arabia, Qatar, the United Arab Emirates and Iraq. He is clearly relying on what NATO military officials in Afghanistan think: the Taliban raise USD60-100 million a year from the trade in illegal narcotics. He says: “What I believe happens is that the Taliban fund local operations in the Pashtun belt out of drug money, but the overall effort gets massive amounts of money from outside Afghanistan”.

He thinks the governments in the Gulf are not involved, but that sympathisers from all over the world are — “with the bulk of it appearing to come from the Gulf”. When a Pakistani representative says the Taliban are getting drug money there are layers of meaning in it. First of all, it is a matter of record that during the Taliban rule in Afghanistan, the militia had successfully curbed poppy cultivation in many parts of the country under their control. The arrival of the Americans in Afghanistan has strengthened the warlords and their “business” of poppy cultivation in the country. What is also on record is the fact that the family of the Afghan president Mr Karzai is involved in the drug trade.

The fact is that the insurgency is very likely to have multiple sources of funding, not just one. Not even one source which caters to the bulk of funds being used to sustain the insurgency and terrorist operations across the region. It is difficult to estimate how much of the money is coming from what source. What makes eminent sense though is to have more than one channel to ensure that the supply doesn’t dry out if one particular source is detected.

Also, we may be forgetting Al Qaeda in all this. Al Qaeda has its old “gold stream” coming into Pakistan and Afghanistan from the UAE in general and Dubai in particular. It started with the purchase of gold and diamonds all over the world — Aafiya Siddiqi was allegedly a part of that network — and then converting them into whatever currency was needed in the area of operation. The half a million dollars supposed to have been spent on the 9/11 operation had allegedly gone to the US from Dubai via Pakistan. Carrying large amounts of currency on flights to and from the UAE is more dangerous than carrying gold. And the institution of hawala is not dead yet.

One cannot ignore the “income” the Taliban count on through criminal activities. Not only do they allow criminal groups to kidnap people for huge ransoms, they levy their own taxes and “protection money” in the areas where they have replaced the writ of the state. And that includes Peshawar itself where the Governor NWFP has his residence. One reason the “emirate” took shape under Baitullah Mehsud was the need to create his own source of revenue through taxing the transporters of the area. Warlord Fazlullah was tolerated by the Taliban and Al Qaeda even when he became “excessive” — which finally led to his ouster from Swat — because he had a good source of revenue from the state-owned emerald mines he had taken over.

Opposition to the Taliban among the local influential groups in Pakistan has grown because of the need of the Taliban to extort money from them to make up the funds for the purchase of weapons and explosives, paying off its foot-soldiers and compensating the families of the “martyr” Taliban.