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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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Malaysian PM welcomes temporary Afghanistan–Pakistan truce, urges lasting peace
Malaysian Prime Minister Anwar Ibrahim has welcomed the temporary ceasefire between Pakistan and Afghanistan announced in connection with the Eid-ul-Fitr celebrations, calling for continued efforts to reduce tensions and achieve lasting peace.
Anwar shared the message during a telephone conversation with his Pakistani counterpart, Shehbaz Sharif. In a Facebook post, Anwar emphasized the importance of dialogue and de-escalation, while also expressing concern over rising tensions in the Middle East, particularly involving Iran, and urging all parties to prioritize peaceful solutions.
Pakistan said it had temporarily suspended military operations in Afghanistan at the request of Saudi Arabia, Qatar, and Turkey. Afghan authorities likewise announced a halt to operations during Eid, citing goodwill and similar requests from regional partners.
The ceasefire follows weeks of heightened tensions between Afghanistan and Pakistan, including Durand Line clashes and airstrikes.
Separately, Turkey President Recep Tayyip Erdogan in a phone call discussed regional developments with Pakistani Prime Minister Shehbaz Sharif, reaffirming Turkey’s commitment to peace and stability and stressing continued cooperation for long-term security.
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Mojtaba Khamenei calls for improved Afghanistan–Pakistan relations, offers help
In his Persian New Year message, Iran’s new supreme leader, Mojtaba Khamenei, on Friday highlighted the importance of Afghanistan and Pakistan, saying the two neighbors were “very close” to Iran.
Khamenei also made a direct appeal for improved relations between Afghanistan and Pakistan, describing them as “two brotherly countries.” He urged both nations to work toward better cooperation and understanding, stressing that such efforts are important “for the sake of divine pleasure and to avoid division among Muslims.”
Underscoring his commitment, he added that he is personally “ready to take the necessary steps” to help facilitate stronger ties between the two countries.
In recent months, tensions between Afghanistan and Pakistan have risen over security issues, with cross-Durand Line clashes, airstrikes, and accusations about militant activity.
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India sends 2.5-ton medical shipment to Afghanistan
Randhir Jaiswal, spokesperson for India’s Ministry of External Affairs, announced on Friday that a 2.5-ton consignment, including emergency medicines, medical disposables, kits, and equipment has been delivered to Kabul.
According to him, the aid shipment is intended to support the swift recovery of those injured in the recent airstrike by Pakistan’s military regime.
He emphasized that India stands with the people of Afghanistan and will continue to provide all possible humanitarian assistance.
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