Recent reports suggest that the Taliban is able to raise $400 million each year to finance its governance and terrorism activities.
The Taliban raises funds in a variety of ways such as through the taxation of the opium trade, through taxation and extortion, as well as control of mines and mineral extraction. The group also receives significant funds from foreign state sponsors including Iran, Russia, and Pakistan. Private citizens from Saudi Arabia, the UAE, and Qatar are also believed to provide the group with funds.
Analysis: Like any terrorist organization that is able to hold territory, the Taliban likely derives the vast majority of its funds from taxation, extortion, and protection activities. The group likely taxes any economic activity within its area of control, including drug production.