Business
World Bank, Afghanistan Sign $691 Million Grant Package
Finance Minister Eklil Hakimi and World Bank Country Director Shubham Chaudhuri on Tuesday signed a new financing package worth $691million to help revitalize Afghanistan’s economy and improve access to quality healthcare.
The newly approved financing aims to help Afghanistan increase access to quality healthcare, modernize state-owned banks, and expand regional telecommunication connectivity, e-government services and create enabling environment for private sector investment.
“Improving the quality of health services, strengthening the banking infrastructure and digitizing government systems will enhance our ability to deliver better and quality services to our people,” Finance Minister Hakimi said.
“This contribution demonstrates the continued commitment and support of international community helping the government of Afghanistan implement priority reforms for sustainable development,” he added.
At the time of signing the agreement, Health Minister Ferozuddin Feroz, Minister of Communication and Information Shahzad Aryobee and Ethel Sennhauser, acting Vice President of World Bank for South Asia Region were also present.
Health Minister Ferozuddin Feroz said that part of the package will be spent on providing healthcare services to rural areas in the country.
The financing package includes grants of $231 million provided by the International Development Association (IDA), the World Bank’s fund for the poorest countries, as well as $425 million from the Afghanistan Reconstruction Trust Fund (ARTF), and $35 million from the Global Financing Facility (GFF), both managed by the World Bank.
“Afghanistan is implementing an ambitious reform program in a context of strong budget pressures imposed by low domestic revenue, though improving, massive security spending and enormous development needs,” said Shubham Chaudhuri, World Bank Country Director for Afghanistan.
“In this challenging environment, we remain committed to helping the Government of Afghanistan further improve service delivery to the Afghan people. For example, the new health project will improve health and nutrition services for the entire population of the country in all 34 provinces.”
The total support of $691 million consists of three grants:
- $600 million to the Afghanistan Sehatmandi (Health) Project to increase the utilization and quality of health, nutrition, and family planning services across Afghanistan. IDA will provide $140 million, while ARTF is expected to provide an additional $425 million, supplemented by a $35 million grant from GFF. The project will be implemented by the Ministry of Public Health;
- $51 million from IDA to the Afghanistan Digital CASA 1 Project to increase access to affordable internet, attract private investors to the sector, and improve the Government’s capacity to deliver digital government services, by supporting a regionally integrated digital infrastructure and creating enabling environment. The Ministry of Communications and Information Technology will be the implementing agency; and
- $40 million from IDA to the Modernizing Afghan State-Owned Banks Project that aims to strengthen corporate governance and enhance operational efficiency of state-owned banks. The project, to be implemented by the Ministry of Finance, will contribute to the modernization, transparency, and efficiency of the three Afghan state-owned banks: New Kabul Bank, Bank Millie Afghan and Pashtany Bank, and will modernize their IT infrastructure and develop sustainable business models to support inclusive growth.
The Ministry of Mines and Petroleum says that the head of the ministry has met with a number of visiting businessmen and representatives of oil and gas processing companies from the Republic of Tatarstan.
The ministry said at the recent meeting, the visiting businessmen outlined their experience and work in the field of oil and gas extraction and processing.
In a post on X, the ministry quoted the Tatarstan group as having acknowledged an “orderly system” in Afghanistan with complete security and favorable grounds to invest.
The visitors said at the meeting their companies are considering the possibility of investing in the survey, exploration and extraction processes of oil and gas in the country, as well as the refinement stage.
Shahabuddin Delawer, Acting Minister of Mines and Petroleum, welcomed the group’s enthusiasm and said “fortunately, Afghanistan has rich oil and gas resources in various areas,” adding that currently agreements are being drawn up regarding Herat’s oil and gas blocks – something which Tatarstan businessmen could invest in.
Delaware said that the Ministry of Mines and Petroleum is ready to cooperate in accordance with the relevant laws in order to facilitate investment.
Tatarstan, officially the Republic of Tatarstan, is a republic of Russia located in Eastern Europe.
Afghanistan and Turkmenistan companies have signed more than 10 contracts and two memorandums of understanding on construction materials, including iron bars, paint, marble and food materials.
The contracts were signed during the trip of a Turkmen business delegation to Herat province and in the presence of Nooruddin Azizi, Acting Minister of Industry and Commerce.
“There is excellent opportunity for the expansion of trade and economic relations between Afghanistan and Turkmenistan, which both sides should take full advantage of,” Azizi said at the signing ceremony of these contracts, according to a statement released by the Ministry of Industry and Commerce on Tuesday.
The Ministry of Industry and Commerce pointed out that the contracts were inked as a follow-up to visit of the acting minister to Turkmenistan and meeting with its national leader Gurbanguly Berdi Mohammadov.
Earlier, the delegation from Turkmenistan’s private sector said that their goal is to expand economic relations between the private sectors of the two countries. They said they are hoping to buy hundreds of tons of construction materials from Afghan industrialists every year.
Union of Turkmen industrialists is interested in a contract with Herat industrialists in the field of construction materials. The economic delegation of Turkmenistan, which has been in Herat for the past three days, has visited various plants including marble and iron and also paint manufacturers.
The delegation, which is from Turkmenistan’s private sector, says that their goal is to expand economic relations between the private sectors of the two countries.
They said they are hoping to buy hundreds of tons of construction materials from Afghan industrialists every year.
Contracts for the sale of marble, paint and iron bars between the two countries are expected to be signed soon.
“During this trip that we were in Herat and the products that we saw in the factories and especially the works that were handicrafts in the field of marble and onyx, these are really amazing, naturally, in the world of industries handicraft is said to be one of the most expensive and popular products, so we were surprised by the products we saw here,” said a member of the delegation from Turkmenistan.
Herat Chamber of Industries and Mines says that there is now the capacity in Herat Industrial City to produce enough goods in various sectors to export abroad. At present, there are about 40 companies operating in the marble processing sector.
An agreement with the Turkmenistan union for construction materials could be a valuable step for Herat business owners.
Some factory owners also believe that the production of construction materials has improved in recent years, and that the capacities in the production and processing of marble and iron bars have also increased.
Herat Chamber of Industries and Mines says that currently more than 800 factories are active in the industrial town of this province.
IED explosion in Badakhshan leaves 8 dead and wounded
Tatarstan businessmen keen to invest in Afghanistan’s oil and gas sector
Khurasan beats Istaqlal 1-0 in ACL; Sorkh Poshan thrash Sarsabz Yashlar 4-1
Delhi down Rajasthan to stay in IPL play-off race
Pakistan is using its territory against Afghanistan: MoD
Indian foreign ministry advises against travel to Iran, Israel
Commerce ministry inks 10 MoUs to boost development of small and medium-sized businesses
Rashid Khan threatens BBL pullout after Australia postpones Afghanistan T20I series
Biden says Netanyahu’s approach to war in Gaza is a ‘mistake’
Rashid Khan named AWCC’s brand ambassador
Tahawol: Israeli attack on Rafah city discussed
Saar: Afghanistan’s caretaker govt criticizes world for creating challenges
Saar: Afghanistan calls for WHO to hand over its seat
Tahawol: Participation of IEA delegation in OIC meeting discussed
Saar: UNHRC approves Afghanistan’s national human rights report
-
Science & Technology5 days agoChina launches historic mission to retrieve samples from far side of the moon
-
Latest News4 days agoTrans-Afghan railway project expected to be completed by end of 2027: Uzbek official
-
Sport5 days agoAino Mina and Khorasan secure 2-1 wins in Friday’s ACL matches
-
Sport3 days agoDu Plessis, Kohli help Bengaluru stay in IPL play-off race
-
World4 days agoHamas, CIA director to hold talks in Cairo on Gaza truce
-
Latest News5 days agoAWCC launches telecom services in Kunar’s Noor Gul district
-
Latest News5 days agoAfghan journalists ‘must be celebrated, supported and protected’: UNAMA
-
Latest News3 days agoBan on opium cultivation in Afghanistan cost farmers $1.3 billion