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Commercial banks to finance public welfare projects under new mechanism
The Economic Deputy of the Prime Minister’s Office announced on Wednesday that a new financing mechanism has been signed between the Ministry of Finance and the central bank, Da Afghanistan Bank (DAB), paving the way for commercial banks to play a direct role in funding public welfare projects.
According to the statement, the document was developed under Article 2, Clause 5 of the Rules of Procedure of the Economic Commission. Its purpose is to provide a legal framework for mobilizing commercial banks in support of public-interest projects, while simultaneously creating opportunities for domestic investment and boosting banks’ revenues.
Under the new mechanism, the Ministry of Finance will identify and prioritize public welfare projects through consultations with relevant sectoral institutions, after which it will prepare the required financial models.
Da Afghanistan Bank, in turn, will encourage and guide commercial banks to participate in financing and implementing these initiatives.
Officials say the move is designed to ensure that critical development projects — particularly in infrastructure, healthcare, and education — can be supported through private sector involvement, easing pressure on limited state resources.
The approach also aims to provide commercial banks with sustainable investment opportunities at home, reducing dependency on foreign funding streams.
Afghanistan’s financial sector has struggled since the collapse of the former republic in 2021, when international sanctions and the freezing of central bank reserves triggered a banking crisis.
Although some stability has returned in recent years, liquidity challenges and restricted access to global markets remain key obstacles. By integrating commercial banks into public financing, the government hopes to stimulate economic activity and strengthen confidence in the country’s financial system.
The statement emphasized that the new mechanism will not only benefit public services but also build a foundation for a more resilient banking sector, capable of contributing to Afghanistan’s long-term development goals.
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Baradar approves action plan for establishing special economic zones
The action plan for establishing special economic zones across the country was approved on Wednesday by Mullah Abdul Ghani Baradar, Deputy Prime Minister for Economic Affairs.
According to a decree issued by the Supreme Leader of the Islamic Emirate, these special economic zones will be established in the provinces of Kabul, Balkh, Nangarhar, Kandahar, Herat, Paktia, and Kunduz.
Under the plan, the Ministry of Industry and Commerce, in cooperation with other relevant ministries and government agencies, will identify the land required for these zones, determine the necessary sectoral activities and services, and create the conditions needed to attract investment.
The establishment of these special economic zones is aimed at attracting new investments, achieving a relative balance between exports and imports, and expanding production activities in a suitable environment, paving the way for a new phase of economic development in the country.
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Russian deputy prime minister to visit Kabul with high-level economic delegation
The visit aims to strengthen economic and trade relations between Afghanistan and Russia, explore investment opportunities and discuss potential joint economic projects.
Russian Deputy Prime Minister Alexei Overchuk is scheduled to visit Kabul on Thursday, leading a high-level economic delegation, Afghanistan’s Ministry of Foreign Affairs has announced.
According to a statement by the ministry, the visit aims to strengthen economic and trade relations between Afghanistan and Russia, explore investment opportunities and discuss potential joint economic projects.
The visit is expected to provide an opportunity for officials from both countries to discuss ways of expanding bilateral economic cooperation and identifying new areas for trade and investment.
The ministry did not provide further details about the delegation’s programme or the specific projects expected to be discussed during the visit.
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UNESCO warns Afghanistan risks losing an entire generation of professionals as girls’ education ban continues
An estimated 2.4 million girls in Afghanistan are currently excluded from secondary education, while no girls enrolled in universities in 2026.
The United Nations Educational, Scientific and Cultural Organization (UNESCO) has warned that continued restrictions on girls’ and women’s education in Afghanistan could deprive the country of an entire generation of skilled professionals, particularly in education, healthcare and other essential sectors.
Hoda Jaberian, UNESCO’s Education in Emergencies Programme Coordinator, said Afghanistan cannot afford to lose another generation of learners, stressing the urgent need to restore access to education for girls and women.
According to a United Nations report published in November, an estimated 2.4 million girls in Afghanistan are currently excluded from secondary education, while no girls enrolled in universities in 2026.
Since the Islamic Emirate of Afghanistan returned to power in 2021, girls have been barred from attending secondary schools beyond Grade Six. Restrictions were further expanded in December 2022, when women were prohibited from attending universities, followed by a ban on women’s education at medical institutions in December 2024.
Jaberian emphasized that the immediate priority must be reopening schools to girls and allowing women to return to the formal education system, noting that alternative learning opportunities cannot replace regular schooling.
She also called for greater support for teachers, improved educational materials, stronger teaching standards and better data collection and planning to strengthen Afghanistan’s education system.
UNESCO warns that prolonged restrictions could have serious consequences for Afghanistan’s future, limiting the country’s ability to train the teachers, doctors and other qualified professionals needed for national development.
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