Back in 2012, when I started a long mission at the United Nations’ mission for Afghanistan (UNAMA), I couldn’t help wondering how much money had the Taliban to support all the activities they sponsored. Not only how much, but also where was it coming from. The reason for my questioning was because I learned the Taliban had a proper Government in exile (in Pakistan) with ministers, cabinets, “Provinces’ Taliban shadow Governors” ,etc.; they also sponsored a great number of religious schools (madrassas), where the recruited children had not to pay anything and were had all they needed (food, dressing, accommodation, education, etc.) for free; and then there was, off course, the payment of the jihadists’ salaries, running costs of all their (many)insurgent operations, buying weapons and ammunition, paying compensation money for the families of the suicide attackers, etc. etc.
In practical terms, it must require a lot of Money – millions – to run such an organization. Sure enough I found that the yearly Taliban budget (for that year) was well over 400 million USD. That was the answer for “how much” … now I had to find “where was it coming from”. The information was right there, floating in every “open source” report. The Taliban
There were seven incoming flows to the Taliban treasury: Donations from friendly Islamic countries; voluntary donations from rich private people in the diaspora; violent extortion or ransoms from businessmen (allowing them to maintain their business/families); illegal taxes from the population in the areas they dominated; corruption over the donations (for development projects) by the International Community; and, of course, drug trafficking.

The “Shadow Government” would keep 275 million USD for running expenses and the rest of the money was to be distributed throughout their warfighting activities. It was estimated the Taliban military operations would cost them between 100 and 155 million USD per year.
The extortion of large amounts of money was basically done over the mobile phone operators (or else their antennas would be destroyed); civil construction enterprises (allowing them to carry-on building roads and other large infrastructures; minerals exploration companies; distributors of electricity and water (in urban areas); and all sort of entities (national and international) dedicated to implement field development projects and humanitarian aid. Even the transportation companies (fuel trucks & cargo lorries) were on the list. The schemes had reach the ridiculous situation that the Taliban would be payed to let pass the fuel and ammunition transports for ISAF (across the Afghan/Pakistan border) to furnish the very same ISAF soldiers they would be fighting against, on the next morning. In fact, the Afghan/Pakistan border was one of the most important revenue sources not only for the Taliban, but for all sort of insurgency groups, criminality and corruption schemes. It was said that the amount of money made at the border control to the Afghan treasure was absolutely ridiculous compared with other entities were making. As long as the money would flow, the Jihad and the religious fundamentalism would fade out.
As far as the illegal taxation over the population on the areas dominated by the Taliban, there were two types of taxes: 10% over the crops and/or commercial profits; and 2,5% over the personal/private savings. People refusing to pay would be targeted for kidnaping and ransom.
The Drugs trafficking was one of the most important revenues for the Taliban. It was estimated they would make between 155 and 200 million USD per year with that activity. That alone was more than enough to sponsor their warfighting expenses. The Taliban would impose special taxation to opium farmers and chemistry labs (for heroine production), they would be payed to guard and escort drugs loads and transportation; etc. Afghanistan was well known to be the largest producer of opium in the world, generating 3,6 to 4 trillion USD a year. Taken those vast sums into consideration, if the Taliban were making “only” 200 million out of it … they were not abusing the system!
