The Taliban are thought to be one of the wealthiest insurgent groups in the world, and after two decades of fighting US and partner forces, the militants now control Afghanistan.
The Taliban ruled Afghanistan from 1996 until late 2001, when they were overthrown by US forces. Despite the 20-year conflict that followed the group's territorial control and military strength has increased in recent years. By mid-2021 they had an estimated 70,000-100,000 fighters. Maintaining this level of insurgency has required a great deal of funding from sources both inside and outside of Afghanistan.
The group's annual income from 2011 onwards has been estimated at around $400m (£290m) by the United Nations (UN). But by the end of 2018 this may have increased significantly, to as much as $1.5bn a year, according to BBC investigations.
BBC interviews carried out inside Afghanistan and abroad (reported by Dawood Azami, BBC World Service & Reality Check) indicate the group is running a sophisticated financial network. They have developed a number of income sources.
1. Foreign donations
Several Afghan and US officials have long accused certain countries - including Pakistan, Iran and Russia - of giving financial aid to the Taliban. In addition, private citizens from Pakistan and several Gulf countries including Saudi Arabia, the United Arab Emirates and Qatar are considered to be the largest individual contributors.
According to experts it could be as much as $500m a year.
2. Drug trade
The Taliban have long been thought to run a taxation system to cover their insurgent operations, including on the illegal drug trade. Afghanistan is the world's largest producer of opium, which can be refined to make heroin. With an estimated annual export value of $1.5-$3bn, opium is big business, supplying the overwhelming majority of heroin worldwide.
A 10% cultivation tax is collected from opium farmers, according to Afghan government officials.
Taxes are also reportedly collected from the laboratories converting opium into heroin, as well as the traders who smuggle the illicit drugs.
Estimates of the Taliban's annual earnings from the illicit drug economy range from $100m-$400m. The drug trade accounts for up to 60% of the Taliban's annual revenue, said US commander General John Nicholson in the 2018 Special Inspector General for Afghan Reconstruction (Sigar) report.
3. Expanding areas of control
The Taliban's financial network extends well beyond taxing the opium business.
The Taliban have warned Afghan traders to pay their taxes on various goods - including fuel and construction material - when travelling through areas they control. After ousting the Afghan government, the Taliban now controls all the major trade routes in the country, as well as border crossings - creating more potential sources of revenue from imports and exports. Over the past two decades, a significant amount of Western money has also unintentionally ended up in Taliban pockets.
4. Mines and minerals
Afghanistan is rich in minerals and precious stones, much of it under-exploited as a result of the years of conflict. The mining industry in Afghanistan is worth an estimated $1bn annually, according to Afghan government officials. Most of the extraction is small scale and much of it is done illegally.
The Taliban like the former Caliphate in Syria-Iraq have their own sources of revenue to sustain operations and add more fighters into their fold. The U.S., in 20 years, could have reduced these resources by devising strategies to eliminate opium, foreign donations and local taxes. The other area that could have helped was to get Pakistan and maybe Iran not to provide safe sanctuary for Taliban fighters. Alas, now is too late!
Source: https://freedomhouse.org
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