Following negotiations between the Ministry of Finance and representatives of the World Bank, the organization’s office in Kabul has reopened.
The World Bank announced that it will begin repaying its debts to Afghan companies. According to an official statement, the bank owes $50 million to logistics and construction companies in Afghanistan. These payments will be made to the companies in three phases.
Ahmad Wali Haqmal, spokesperson for the Ministry of Finance, said: “Based on figures verified by the World Bank, the institution owes approximately $50 million to logistics and construction companies in Afghanistan. These confirmed debts will be paid to the respective companies in four stages through the Ministry of Finance.”
The start of debt repayments by the World Bank could pave the way for the resumption of development projects, job creation, and economic growth in the country.
Some experts said that other financial institutions should also be persuaded by the Islamic Emirate to resume their activities in Afghanistan.
Mir Shakeeb Mir, an economic analyst, said: “The World Bank’s repayment of debts to companies that implemented projects during the Republic era, but were unable to receive their dues, is a highly positive step. This move could also play a major role in restoring donor confidence.”
Mir Shakir Yaqubi, another economic analyst, stated: “In the current situation, it is absolutely necessary for the Islamic Emirate to use every possible option to convince major international institutions to resume their projects in Afghanistan, as the country’s economic conditions, overall situation, and commercial needs require these offices to be active within the country.”
Following the political changes in August 2021, many international organizations, including the World Bank, suspended their financial operations and development projects in Afghanistan.
In recent months, with the initiation of consultations between the Ministry of Finance and representatives of the World Bank, hopes have risen for the revival of economic relations and the continuation of debt repayments.