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World Bank board backs using $1 billion in frozen Afghan funds for aid

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The executive board of the World Bank on Tuesday approved a plan to use more than $1 billion from a frozen Afghanistan trust fund to finance urgently needed education, agriculture, health and family programs, the bank announced.

The plan, which will bypass sanctioned Islamic Emirate of Afghanistan (IEA) authorities by disbursing the money through U.N. agencies and international aid groups, will provide a major boost to efforts to ease the country’s worsening humanitarian and economic crises, Reuters reported.

The approach “aims to support the delivery of essential basic services, protect vulnerable Afghans, help preserve human capital and key economic and social services, and reduce the need for humanitarian assistance in the future,” the bank said in a statement.

Afghanistan Reconstruction Trust Fund (ARTF) was frozen in August when the IEA overran Kabul as the last U.S.-led international troops departed after 20 years of war.

According to the report foreign governments ended financial aid constituting more than 70% of government expenditures while the United States led in the freezing of some $9 billion in Afghan central bank funds.

The funding cuts accelerated an economic collapse, fueling a cash crunch and deepening a humanitarian crisis that the United Nations says has pushed more than half of Afghanistan’s population of 39 million to the verge of starvation, read the report.

The World Bank statement said that as a first step, ARTF donors will decide on four projects worth about $600 million that will support “urgent needs in education, heath and agricultural sectors, as well as community livelihoods.”

There will be a “strong focus on ensuring that girls and women participate and benefit from the support,” the statement continued.

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6.1-magnitude earthquake hits Afghanistan, epicenter in Badakhshan

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A 6.1-magnitude earthquake struck Afghanistan on Saturday afternoon, according to the United States Geological Survey (USGS).

The quake’s epicenter was reported in Jurm district of Badakhshan province, with a depth of 208.3 kilometers.

So far, there have been no immediate reports of casualties or damage following the tremor.

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Delawar says Afghanistan has achieved security and unity after 47 years

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Shahabuddin Delawar, Head of the Commission for Contact with Afghan Personalities, says Afghanistan has achieved security, unified governance, brotherhood, and progress for the first time in 47 years under the administration of the Islamic Emirate of Afghanistan (IEA).

Speaking at a meeting in Kabul on Saturday, Delawar said Afghanistan had lacked a unified system over the past four decades, but added that with the return of the Islamic Emirate, the issue has now been resolved.

Referring to Ashura commemorations held on Friday, he said the occasion was observed peacefully across the country under full security.

Delawar also urged exiled Afghan politicians to return, saying the commission was established to serve Afghans and address the concerns of returning figures. He added that any legal disputes involving returnees would be handled exclusively through the commission.

He further said the Islamic Emirate has expanded treatment centers and intensified anti-narcotics efforts since regaining power, claiming this has led to a significant decline in drug addiction.

Addressing the issue of international legitimacy, Delawar said he understood why the United States has not recognized the Islamic Emirate, arguing that Washington suffered a defeat in Afghanistan that it cannot easily overlook.

“They have suffered a major defeat that they cannot forget; if they recognize us, they will face questions from their own people,” Delawar said.

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EU announces major funding to support Afghan small businesses

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The European Union says it is implementing hundreds of millions of euros in projects to support small and medium-sized enterprises (SMEs) in Afghanistan and help expand economic opportunities across the country.

Speaking to Ariana News, EU Chargé d’Affaires in Kabul, Veronika Boskovic Pohar, said the programs are aimed at creating jobs for skilled workers, women, youth, and returnees, while also strengthening the private sector. She added that alongside international support, Afghan authorities also have a role in facilitating economic growth.

According to Pohar, the EU is currently implementing projects worth €156 million focused on livelihoods, durable solutions, job creation, and women’s economic empowerment. She said an additional €40 million program specifically designed to support returnees will be launched in the near future.

She noted that the EU is gradually shifting its focus from emergency humanitarian aid toward long-term sustainable solutions, particularly for internally displaced people and returnees in Afghanistan.

Meanwhile, the United Nations, marking World Day of Small and Medium Enterprises, said SMEs account for more than 90 percent of businesses worldwide and play a critical role in employment and economic growth.

UN spokesperson Stéphane Dujarric stressed that stronger investment, innovation, and sustainable industrial development are essential to help businesses withstand economic challenges and build resilient economies.

Afghan private sector representatives and economic analysts say greater support for SMEs could help the country address economic challenges faster, increase employment, and promote sustainable long-term development.

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