By News Desk
Washington: Western Union announced on Thursday said that it would resume its money transfer service to Afghanistan, allowing vital remittances into the country as it faces economic hurdles following the Taliban´s takeover last month.
"Western Union is pleased to share that it is resuming its money transfer services into Afghanistan, starting September 2, so that our customers can once again send money and support their loved ones at this time," a spokesperson said.
The world's largest money-transfer firm and MoneyGram International Inc, another global remittance provider, suspended services in Afghanistan two weeks ago after the Islamist militia captured Kabul at lightning speed. read more
But an easing of security concerns following the completion of the Taliban's conquest of the country opened the way for the reopening this week of banks, which the money-transfer firms rely on to dispense and collect funds.
"We understand the urgent needs of our customers and their families and are committed to supporting them," the spokesperson said, adding that Western Union would waive transfer fees from September 3 through 17.
Jean Claude Farah, Western Union's president in Asia, Europe, the Middle East and Africa, said the reopening of banks, plus a push by the United States to facilitate humanitarian assistance to the Afghan people, had given the American company confidence to resume services on Thursday.
"Much of our business involving Afghanistan is low-value family and support remittances that support basic needs of the people there, so that's the grounding that we have and why we want to reopen our business," Farah said.
"We've engaged with the U.S. government, which has conveyed that allowing humanitarian activities, including remittances, to continue are consistent with U.S. policy."
The flow of funds from migrant workers overseas is a key lifeline for many Afghans and has helped the economy of one of the world's poorest nations weather years of violence and instability. The United Nations says about half of the population requires aid amid the second drought in four years.
Remittances from Afghans living abroad are crucial for the impoverished country´s economy and amounted to almost $789 million in 2020, according to the World Bank -- some four percent of the country´s estimated $19.8 billion GDP that year.
The Washington-based development bank last week announced it would suspend aid to the country, saying it was "deeply concerned about the situation in Afghanistan and the impact on the country´s development prospects, especially for women."
The IMF announced shortly after the Taliban´s takeover that it would suspend its assistance to the country, citing uncertainty surrounding its leadership.
The Islamist militants, who have pledged a softer brand of rule than during their brutal reign of 1996-2001, are expected to soon form a new government.