In this exclusive interview, Forpol’s Mark Kinra sat down with Afghan banking professional Ahmadullah Ghurzang, educated abroad and now witnessing the country’s financial transformation firsthand, reflects on how Afghanistan’s banking sector has changed from a globally connected system to one struggling in isolation.
Q: Mr. Ghurzang, how would you describe the difference between Afghanistan’s banking sector before and after the Taliban takeover?
Before the Taliban (Pre-2021):
According to Ahmadullah Ghurzang, the banking sector prior to 2021, while young and developing, was far more connected to international finance.
“Banks operated through SWIFT, managed international trade transactions, provided corporate loans, and supported economic diversification,” he explains. “Most formal trade and business activities relied on regulated banking channels. There was trust, and there were partnerships with foreign financial institutions.”
After the Taliban (Post-2021):
“Everything changed overnight,” Ghurzang says. “Once the previous government collapsed, Afghan banks were immediately cut off from global financial networks. Correspondent banking was frozen. SWIFT access became severely restricted. We shifted from service and growth to pure crisis management.”
He adds that banking work today is dominated by liquidity control, sanctions compliance, frozen assets, and the struggle to rebuild public trust. “The workload has tripled, but capacity has shrunk.”
Q: Sanctions and frozen assets are often mentioned as the main constraints. From your perspective, how do they affect the banking sector?
Ahmadullah Ghurzang outlines five major impacts:
- International Sanctions:
“Sanctions prevent Afghan banks from connecting to global markets. Foreign institutions are unwilling to interact with us, and even basic transactions face scrutiny.” - Frozen National Reserves:
“Billions of dollars in Afghanistan’s central reserves are held abroad, mainly in the US. These funds were vital for stabilizing currency and supporting the economy. Their absence cripples the banking sector.” - Blocked Aid & Remittances:
“Aid inflows and remittances — once major sources of liquidity — are delayed or rerouted. Families struggle, banks struggle.” - Liquidity and Currency Constraints:
“Every day is a liquidity crisis. Limited access to foreign exchange makes even domestic operations unstable.” - Economic Fallout:
“With formal banking weakened, people turn to informal systems. Poverty rises, transparency falls, and the national economy contracts.”
Q: Before the Taliban, up to 90% of transactions happened via Hawala. What is the situation now?
“Hawala hasn’t disappeared- it has expanded,” says Ghurzang.
Before 2021:
Hawala accounted for an estimated 60–90% of financial transactions due to cultural trust and poor banking penetration.
Today:
“After banks lost access to international systems and liquidity, more individuals, traders, even some agencies, returned fully to Hawala. In many rural areas, it’s the only functioning financial lifeline.”
While Hawala keeps the economy alive, Ghurzang warns it also bypasses regulation:
“It sustains survival, but it undermines long-term financial reform.”
Q: In your opinion, does the Taliban need greater international recognition to restore economic stability?
“Yes,” Ghurzang responds firmly.
“Recognition does not mean political approval, it means financial functionality. Without international engagement, Afghanistan remains locked out of the global financial system.”
He argues that even limited diplomatic recognition could reopen:
- Correspondent banking relationships
- Access to reserves
- Foreign direct investment
- Humanitarian funds
“Without recognition, our banks will remain disconnected, and our people will remain in crisis.”
Q: As someone educated in India, do you believe the Taliban must prioritise education, including for girls, and allow students to study abroad?
Ghurzang emphasises education as the cornerstone of national revival.
“No country can rebuild without human capital. Education is not optional, it is foundational.”
He highlights three key reasons:
- Human Development: Educated citizens contribute to innovation, governance, and economic stability.
- Gender Inclusion: “Educating girls strengthens families, communities, and future generations. Excluding them is national self-harm.”
- International Legitimacy: Support for education, especially girls’ education, improves Afghanistan’s global standing and opens doors for aid and cooperation.
He strongly encourages scholarships and foreign study opportunities:
“Sending Afghan students abroad creates globally aware leaders. This is how nations evolve.”
In reflecting on Afghanistan’s financial future, Ahmadullah Ghurzang makes it clear that the country’s banking sector is trapped between survival and uncertainty. While informal systems like Hawala keep the economy breathing, they cannot replace the trust, stability, and international access that formal banking provides. Without meaningful engagement with the global community, renewed focus on education, and gradual diplomatic recognition, Afghanistan risks remaining isolated and economically fragile. The way forward, he suggests, lies not in resistance to the world, but in reconnecting with it.
Note : This interview was taken before the recent announcement by the MEA regarding updating India’s Kabul Presence to full Embassy.
