Afghan banks to finance Herat–Mazar railway project

Afghanistan’s central bank has announced that commercial banks will participate in financing the planned Herat–Mazar-e-Sharif railway project, a major infrastructure initiative estimated to cost nearly 55 billion afghanis ($780 million).

The announcement came during a joint meeting between officials from Da Afghanistan Bank, the Ministry of Finance and representatives of commercial banks, chaired by First Deputy Governor of Da Afghanistan Bank, Sediqullah Khalid.

According to the central bank, a financing mechanism for national development projects has recently been finalized in coordination with the Economic Deputy Office of the Prime Minister and the Ministry of Finance, creating a framework for commercial banks to invest directly in large-scale infrastructure projects.

Khalid said the banking sector could play a significant role in strengthening the national economy and accelerating the implementation of development projects through domestic investment.

He noted that discussions during the meeting focused on the Herat–Mazar-e-Sharif railway project, which is expected to stretch 657 kilometers across Afghanistan. The project is intended to boost economic growth, expand trade links and improve regional connectivity.

Khalid also said improved security conditions in the country have created a favorable environment for implementing major infrastructure projects, adding that the central bank would provide the necessary support and facilities to encourage private-sector participation.

Representatives of commercial banks expressed readiness to invest in the railway project, describing participation in national development initiatives as both an opportunity and a responsibility to contribute to Afghanistan’s economic growth.