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Coronavirus: World Bank grants $100.4 Million in aid to Afghanistan
The World Bank on Thursday approved a $100.4 million grant for Afghanistan to fight the pandemic COVID-19 in the country.
The World Bank said in a statement that the aid is dedicated to Afghanistan for the COVID-19 Emergency Response and Health Systems Preparedness Project to help Afghanistan take effective action to respond to the threat posed by COVID-19 and strengthen its public health preparedness.
“This new fast track package will cover all 34 Afghan provinces and reinforce essential health care services to slow down the spread of COVID-19 across Afghanistan and deliver optimum care in the case of a surge in demand for treatment,” the statement said.
The statement noted that the financing will support infected people, at-risk populations, medical and emergency personnel as well as service providers, medical and testing facilities, and national health agencies.
The project is financed by a grant from the International Development Association (IDA), the World Bank Group’s fund for the poorest countries, in the amount of $100.4 million, of which $19.4 million is provided from the World Bank’s COVID-19 Fast-Track Facility. It will be implemented by the Ministry of Public Health supported by UN agencies and service providers already working under the Sehatmandi project.
“The World Bank stands firm with the Afghan government and people to fight the spread of COVID-19 in the country,” said , World Bank Country Director for Afghanistan.
“This emergency support package will help Afghanistan’s health system mitigate the impact of an outbreak and strengthen health services. The World Bank, together with the Government of Afghanistan and other partners, will work tirelessly to implement this project and is committed to helping Afghanistan lessen the impact posed by COVID-19 in the most effective way,” Kerali added.
The project will also help address significant negative externalities expected in the event of a widespread COVID-19 outbreak, including comprehensive health awareness and behavior change campaigns.
It comes as the number of positive cases for the Coronavirus has risen to 274 with six deaths in Afghanistan.
Nooruddin Azizi, Minister of Industry and Commerce of the Islamic Emirate of Afghanistan (IEA), during his official visit to Termez, Uzbekistan, met with Jamshid Khodjayev, Deputy Prime Minister of Uzbekistan, to discuss expanding bilateral economic ties.
The meeting was attended by Mohammad Yousuf Wafa, Governor of Balkh, Abdul Ghaffar Bahr, Afghan Ambassador to Tashkent, and several representatives from Afghanistan’s private sector. The two sides held extensive talks on enhancing trade relations, increasing trade volumes, expanding transit routes, removing trade barriers, and promoting joint economic initiatives.
Minister Azizi emphasized the growing partnership between the two countries and stressed the need to accelerate the implementation of agreements while providing greater support and facilities for traders and investors.
Deputy Prime Minister Khodjayev welcomed the Afghan delegation, highlighting the interest of Uzbek investors in sectors such as agriculture, mining, transport, infrastructure, and health. He also announced Uzbekistan’s readiness to deploy technical teams to support the execution of joint projects.
Azizi expressed Afghanistan’s full commitment to cooperating on shared economic initiatives, while representatives from the Afghan private sector shared their proposals, emphasizing the importance of closer collaboration between the two countries’ private sectors.
The meeting also included participation from Uzbekistan’s Ministers of Transport, Agriculture, Energy, and Health, the First Deputy Minister of Foreign Affairs, and several provincial governors, who joined online.
Rail freight between Iran and Afghanistan has increased 17-fold during the 1404 solar year, underscoring a sharp rise in cross-border trade and transit activity, Iranian officials say.
Shahryar Naqizada, Director General of Foreign Trade for Iran’s Railway, told state news agency IRNA that between March 2025 and February 2026, some 650,000 tons of goods were transported to Afghanistan by rail.
Of that total, approximately 150,000 tons consisted of transit cargo — goods originating in third countries and routed through Iran before entering Afghanistan.
The surge reflects Tehran’s broader push to strengthen regional connectivity and position itself as a key trade corridor linking Central Asia to international markets.
Rail links between the two neighbors have become increasingly important as Afghanistan seeks alternative trade routes and more cost-effective import channels.
A major driver of this growth is the Khaf–Herat railway line, which connects northeastern Iran to western Afghanistan and has gradually expanded commercial operations in recent years.
The line reduces transport costs and transit times compared to road freight, while also improving reliability for bulk commodities such as construction materials, fuel, food products, and industrial goods.
Looking ahead, Naqizada said Iran aims to move two million tons of cargo through the Shamtigh border crossing in the 1405 solar year (2026–2027), calling the target achievable given current momentum.
The increase in rail shipments comes amid expanding economic engagement between the two countries, including discussions on infrastructure investment, transit cooperation, and agricultural trade.
Analysts say improved rail connectivity could further integrate Afghanistan into regional supply chains, particularly if complementary customs and logistics systems are strengthened on both sides of the border.
Iran is exploring ways to deepen economic engagement with Afghanistan, focusing on contract farming and trade, as discussions continue over potential formal recognition of the Islamic Emirate of Afghanistan (IEA) government, a senior Iranian business official said.
According to Iran News Daily, Mahmoud Siadat, head of the Iran–Afghanistan Joint Chamber of Commerce, said recognition of the Islamic Emirate of Afghanistan would boost investor confidence and facilitate long-term projects, including rail links connecting Iran to China via Afghanistan.
While no formal recognition has been confirmed, Siadat noted that bilateral relations have steadily improved.
Iran exports over $3 billion in goods and services annually to Afghanistan, including technical and engineering services, while Afghan exports to Iran remain limited at around $100 million.
Siadat highlighted agriculture as a key growth area, with plans for contract farming where Iranian firms would provide technology, expertise, and guaranteed purchase agreements for Afghan crops and livestock.
“Instead of importing legumes from Canada, we can source them from Afghanistan,” he said, noting that structured agricultural cooperation could benefit both countries.
Remittances from Afghans working in Iran, he added, further underline the strong economic ties between the neighbors.
Even without formal recognition, trade remains robust, but Siadat emphasized that a clear diplomatic framework could unlock more investment and strategic projects.
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