World Bank Approves $300 Mln in Aid for Afghanistan

The World Bank Group announced on Thursday that its executive board has approved a new approach to assist Afghanistan, involving the allocation of about $300 million from the bank's International Development Association (IDA) fund, which is designated for the world's poorest nations.

The funds will be channeled through United Nations agencies and other international organizations, bypassing the Taliban leadership in Afghanistan, to enhance vital basic services such as food, water, healthcare, education, and employment.

This marks the first instance of World Bank funds being directed to Afghanistan since the Taliban's takeover in August 2021.

Since then, the Afghanistan Reconstruction Trust Fund has redirected $1.5 billion in donor aid through partner organizations, benefiting nearly 25 million Afghans.

The IDA provides grants and highly concessional loans to the world's most impoverished countries, with donor nations replenishing their resources every few years.

The current replenishment cycle, set to conclude with $93 billion in 2025, has seen World Bank President Ajay Banga advocate for a record-breaking new sum in the next cycle to meet the increasing demand for financing.

The World Bank's new strategy for Afghanistan aims to deliver widespread essential services, including employment opportunities through microfinance for income-generating activities and the private sector's involvement in aid delivery.

The approach maintains the fund's focus on women, ensuring project activities are carried out by and for women. This aspect of international relief agency activities may conflict with Taliban policies, which deprive women of rights such as education.

According to a World Bank spokesperson, the available $300 million funding will last until June 30, 2025, covering the remainder of the current fiscal year and the entirety of the next fiscal year.