Taliban Gains Money, Al-Qaida Finances Recovering

Because of demands from the International Monetary Fund, Pakistan has removed restrictions on the amount of money that can be brought into the country, said Pakistani financial intelligence director, Azhar Quereshi. But Pakistan has limited to $10,000 the money that can leave the country, cracking down on some of the biggest hawala dealers.

"Once the money is inside the country, it is difficult to locate it. Smugglers and transporters help finance the Taliban either out of sympathy for their cause or because they are being forced to give a share," said the Pakistani security official who asked not to be identified.

Militants also said a cartel of Pakistani honey dealers are back in business, laundering money and moving drugs to support al-Qaida. The scale is smaller than in 2001, but revenues to the terrorists are steady.

A former fighter with Afghanistan's wanted guerrilla leader Gulbuddin Hekmatyar said honey is sent from Pakistan with an inflated price tag to markets in the Middle East — mostly Saudi Arabia,Dubai and Kuwait. The profits are returned and couriered to al-Qaida.

Honey dealers in Peshawar who didn't want to be identified for fear of harassment by the authorities said that there is no al-Qaida link to their sales. One honey dealer said the outlawed Al Shifa Honey Press still operates in Pakistan's most populous Punjab province but said he knew of no al-Qaida affiliation.