Afghanistan’s Swiss-Based Sovereign Fund Grows to $4.2 Billion Amid Legal Battles for Frozen Reserves

KABUL — Afghanistan’s sovereign assets held in a dedicated trust fund in Switzerland have grown to $4.2 billion, following the accrual of approximately $700 million in investment returns, a senior official confirmed on Sunday.

Anwar-ul-Haq Ahadi, a member of the Special Trust Fund for Afghanistan (STFA), revealed the figure during the 70th online conference of the Association of Afghan Scholars and Specialists, held under the theme “Afghanistan’s Economic and Political Situation: Realities and Future Outlook.”

Ahadi emphasized that none of the Swiss-held funds have been disbursed since the trust was established. “The money is being carefully preserved for the exclusive benefit of the Afghan people,” he said, adding that the principal and returns remain fully intact and will continue to be safeguarded until legal and political conditions permit their transfer to Da Afghanistan Bank, the country’s central bank.

The STFA was created in 2022 as a compromise mechanism to shield a portion of Afghanistan’s overseas reserves from potential seizure or political pressure, while preserving them for future use in stabilizing the Afghan economy. The fund is administered with oversight from international partners, including Switzerland, the United States, and other stakeholders, to ensure transparency and accountability.

Turning to the larger outstanding balance, Ahadi noted that approximately $3.5 billion in Afghan central bank assets remain frozen in the United States. He expressed growing optimism about their eventual release, citing favorable rulings from two U.S. courts that have already sided with Afghanistan’s claims to the funds. “We are confident that the third and final court will also order the release of these assets,” Ahadi said, adding that a unified legal victory would allow all overseas reserves to be protected and ultimately returned for the benefit of the Afghan populace.

The legal proceedings in the U.S. have been closely watched by international financial institutions and Afghan economists, who view the resolution of the frozen assets as critical to addressing Afghanistan’s liquidity crisis and supporting long-term reconstruction efforts. While the Swiss-based fund provides a modest financial buffer, economists argue that full access to the U.S.-held reserves is essential for restoring confidence in Afghanistan’s banking system and facilitating humanitarian trade.

Ahadi’s remarks come at a time of heightened uncertainty over Afghanistan’s economic trajectory, with the country grappling with persistent inflation, currency volatility, and limited foreign investment. The STFA’s growing value, he stressed, demonstrates the potential for prudent asset management, even amid political isolation, but he reiterated that the funds are not a substitute for broader economic reforms and international engagement.

As the legal process in the United States moves toward a final resolution, Afghan stakeholders continue to urge the international community to prioritize the return of the frozen assets, framing it not as a political concession but as a moral and legal obligation to the Afghan people.

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