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Japan pledges over $122 million in aid to Afghanistan for 2021

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(Last Updated On: February 1, 2021)

Japan has announced its decision to provide over $122 million to support humanitarian and development programs in Afghanistan for the year 2021.

In a statement issued on Monday, by the Japanese Embassy in Kabul, this aid “is a vigorous step forward in realizing Japan’s pledge delivered at the Geneva Conference in November 2020, where Foreign Minister Mr. Motegi Toshimitsu affirmed Japan’s long-lasting friendship with and support for the people of Afghanistan, and pledged financial assistance up to 180 million USD per year between 2021 and 2024, a figure
comparable to the past four years.”

The embassy stated that this $122.2 million contribution forms a part of Japan’s assistance to Afghanistan to be disbursed in 2021.

“It will enable implementation of 17 humanitarian and development assistance projects orchestrated by various organizations throughout the country, aiming for the betterment of livelihoods through multiple approaches,” read the statement.

“Enhanced security sector plays an essential role in the Afghan-led nation building as we gaze at peace on the horizon. Our continuous contribution to the Law and Order Trust Fund for Afghanistan (LOTFA) exemplifies Japan’s commitment for a peaceful Afghanistan, as LOTFA is a significant multi donor program that plays a vital role in strengthening the country’s security sector,” said Japan’s Ambassador to Afghanistan OKADA Takashi.

“In light of the global pandemic, we also believe that assistance for vulnerable segment of the population who are most severely affected is essential. We truly hope that this new support will contribute to bringing about as many joyous smiles of Afghan people as possible,” he said.

Japan has been assisting Afghanistan’s nation-building efforts in various
fields including security, agriculture, rural development, human capacity
development, education, health, infrastructure, culture and humanitarian
assistance for many years.

With the upcoming disbursement of $122.2 million, the cumulative Japanese assistance to Afghanistan since 2001 will amount to $6.9 billion.

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World Bank works to redirect frozen funds for humanitarian aid only

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(Last Updated On: November 30, 2021)

The World Bank is finalizing a proposal to deliver up to $500 million from a frozen Afghanistan aid fund to humanitarian agencies, people familiar with the plans told Reuters, but it leaves out tens of thousands of public sector workers and remains complicated by U.S. sanctions.

Board members will meet informally on Tuesday to discuss the proposal, hammered out in recent weeks with U.S. and U.N. officials, to redirect the funds from the Afghanistan Reconstruction Trust Fund (ARTF), which has a total of $1.5 billion, Reuters reported.

Afghanistan’s 39 million people face a collapsing economy, a winter of food shortages and growing poverty three months after the the former government collapsed.

Afghan experts said the aid will help, but big gaps remain, including how to get the funds into Afghanistan without exposing the financial institutions involved to U.S. sanctions, and the lack of focus on state workers, the sources said.

The money will go mainly to addressing urgent health care needs in Afghanistan, where less than 7% of the population has been vaccinated against the coronavirus, they said.

For now, it will not cover salaries for teachers and other government workers, a policy that the experts say could hasten the collapse of Afghanistan’s public education, healthcare and social services systems.

They warn that hundreds of thousands of workers, who have been unpaid for months, could stop showing up for their jobs and join a massive exodus from the country.

The World Bank will have no oversight of the funds once transferred into Afghanistan, said one of the sources familiar with the plans. A U.S. official stressed that UNICEF and other recipient agencies would have “their own controls and policies in place.”

“The proposal calls for the World Bank to transfer the money to the U.N. and other humanitarian agencies, without any oversight or reporting, but it says nothing about the financial sector, or how the money will get into the country,” the source said, calling U.S. sanctions a major constraint.

While the U.S. Treasury has provided “comfort letters” assuring banks that they can process humanitarian transactions, concern about sanctions continues to prevent passage of even basic supplies, including food and medicine, the source added.

“We’re driving the country into the dust,” said the source. Crippling sanctions and failure to take care of public sector workers will “create more refugees, more desperation and more extremism.”

A State Department spokesperson confirmed that Washington is working with the World Bank and other donors on how to use the funds, including potentially paying those who work in “critical positions such as healthcare workers and teachers.”

The spokesperson said the U.S. government remains committed to meeting the  critical needs of the  Afghan people, “especially across health, nutrition, education, and food security sectors … but international aid is not a silver bullet.”

Established in 2002 and administered by the World Bank, the ARTF was the largest financing source for Afghanistan’s civilian budget, which was more than 70% funded by foreign aid.

The World Bank suspended disbursements after the Islamic Emirate of Afghanistan (IEA) takeover. At the same time, Washington stopped supplying U.S. dollars to the country and joined in freezing some $9 billion in Afghan central bank assets and halting financial assistance.

One major problem is the lack of a mechanism to monitor disbursements of funds in Afghanistan to ensure Taliban leaders and fighters do not access them, a third source said.

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Export of Afghanistan’s talc resumes: Industrial Association

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(Last Updated On: November 29, 2021)

Afghanistan Industrial Association said Monday that Kabul recently exported 500 tons of talc powder to a number of countries including China, Spain and the UK.

Abdul Jabbar Safi, the head of the association, said: “Afghanistan has recently exported talc to Pakistan, Turkey, India, China, Spain, and the UK. Exports have resumed and we want to expand our exports.”

The association meanwhile also called for the Islamic Emirate of Afghanistan (IEA) to focus on the mining sector and provide facilities for the extraction of minerals in order to boost investment.

They also called on government to establish new policies around mining, also to boost investment in the sector.

Safi meanwhile said that since the mid-August takeover by the IEA, “illegal extractions of mines, as well as smuggling, have been prevented.”

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TAPI project suspended in Afghanistan until situation ‘stabilizes’

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(Last Updated On: November 27, 2021)

The implementation of the TAPI (Turkmenistan – Afghanistan – Pakistan – India) project has been suspended until the situation in Afghanistan stabilizes, Pakistan’s Federal Minister for Economic Affairs Omar Ayub Khan told Russia’s TASS news agency this week.

“The work on the TAPI, as well as on other projects like CASA-1000 (power transmission system project), is on hold due to the situation in Afghanistan.

“According to the information that we have, at the moment no one is working on this project in Afghanistan as well as on other projects. Many people have been evacuated, and representatives of the World Bank are no longer represented in Afghanistan,” Khan told TASS.

“After stabilizing the situation, we will be able to return to the issue of construction. But for now, the project has been suspended until the situation is cleared up,” he added.

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