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Commercial banks to finance public welfare projects under new mechanism

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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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Deputy PM Baradar urges world to expand economic ties with IEA instead of sanctions

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Mullah Abdul Ghani Baradar, the Deputy Prime Minister for Economic Affairs, has urged the countries in the region and around the world to soften and expand their economic relations with the Islamic Emirate instead of imposing sanctions and undue pressure.

In a statement issued by the deputy PMs office, Baradar made these remarks on Saturday during a speech at the inauguration ceremony of a commercial market in Balkh province.

Baradar added that a prosperous and strong Afghanistan is not to the detriment of other countries in the region; rather, it contributes to the welfare and strengthening of other nations.

He said: “The Islamic Emirate believes in comprehensive economic and political authenticity in the field of regional and international cooperation, provided that there is mutual respect for major values and fundamental principles.”

He stated that IEA’s engagement with the private sector in large-scale and long-term projects—based on public-private partnerships or other types of contracts—conveys a clear message that the environment for domestic and foreign investment in Afghanistan is favorable, and that anyone can take advantage of this opportunity.

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Pakistan summons Afghan diplomat over deadly attack in North Waziristan

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Pakistan on Friday summoned Afghan Deputy Head of Mission in Islamabad to convey “strong demarche” over a deadly attack on a military camp in North Waziristan District that killed four Pakistani soldiers.

In a statement, Pakistan’s Ministry of Foreign Affairs said the attack was carried out by a faction of Tehreek-i-Taliban Pakistan (TTP).

The statement said that Pakistan conveyed “grave concern over the continued support and facilitation” provided by the Islamic Emirate to TTP.

Pakistan has demanded “a full investigation and decisive action against the perpetrators and facilitators of the terrorist attacks launched against Pakistan from Afghan soil.”

It urged the Islamic Emirate “to take immediate, concrete and verifiable measures against all terror groups operating from its territory, including their leadership, and deny the continued use of Afghan soil for terrorism against Pakistan.

According to the statement, the Islamic Emirate has been “categorically informed that Pakistan reserves the right to defend its sovereignty and protect its citizens, and will take all necessary measures to respond to terrorism originating from Afghan soil.”

Pakistani officials have repeatedly claimed that attacks in the country are originated from Afghan soil, a charge the Islamic Emirate denies.

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Uzbek president stresses Afghanistan’s role in regional economic projects

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President of Uzbekistan Shavkat Mirziyoyev has underscored Afghanistan’s continued importance in regional cooperation, saying the country remains one of the key areas of interaction among regional partners.

Addressing the first summit of the “Central Asia Plus Japan” dialogue, Mirziyoyev said participating countries share a common aspiration to see Afghanistan become peaceful, stable, and oriented toward meaningful development.

The Uzbek president praised Japan’s longstanding and consistent support for Afghanistan, noting that Tokyo has for many years been among the leading donors and partners assisting the Afghan people.

He expressed confidence that coordinated efforts and joint contributions by regional countries and Japan would help improve living standards in Afghanistan, advance socio-economic and infrastructure development, and facilitate the country’s active involvement in regional economic projects.

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