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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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IEA cabinet approves development budget spending report

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The cabinet of the Islamic Emirate of Afghanistan (IEA) has approved a report on the spending of the national development budget, following deliberations at its 14th meeting chaired by Prime Minister Mullah Mohammad Hassan Akhund.

According to a statement issued by the Arg on Tuesday, the cabinet endorsed the development budget expenditure report and instructed relevant ministries and departments to ensure that allocated funds are spent on planned projects in a timely manner and in line with approved development plans.

The meeting also reviewed a range of key economic, social and cultural issues. Cabinet members emphasized the need for proper implementation of development activities and adherence to established timelines.

In addition, discussions were held on challenges facing refugees, with relevant authorities directed to identify and implement appropriate solutions to address their concerns.

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FM Muttaqi and Turkish envoy discuss strengthening Kabul-Ankara ties

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Sadin Ayyıldız, the new head of Turkey’s diplomatic mission in Kabul, met in an introductory visit with Amir Khan Muttaqi, the Foreign Minister of the Islamic Emirate, to discuss the development of bilateral relations between the two countries.

During the meeting, Ayyıldız described relations between Afghanistan and Turkey as positive and emphasized the expansion of cooperation in economic and health fields, the Afghan Foreign Ministry said in a statement on Tuesday.

Muttaqi also wished Ayyildiz success, described Turkey as a close friend of Afghanistan, and assessed bilateral relations as being on a path of progress.

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Afghan, Indonesian sports officials discuss expanding cooperation

Indonesian officials said the deputy minister plans to visit Afghanistan in the future to further advance cooperation.

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Ahmadullah Wasiq, head of Afghanistan’s National Olympic and Physical Education Committee, met Indonesia’s Deputy Minister of Youth and Sports, Taufiq Hidayat, during an official visit to Indonesia held alongside the Asian Cup competitions.

The talks focused on strengthening sports cooperation, including improving access for Afghan athletes living in Indonesia to local leagues and training camps.

Hidayat described the meeting as a positive step toward closer sporting ties and stressed the need for continued engagement.

Afghanistan’s ambassador to Indonesia, Saadullah Baloch, also attended the meeting, highlighting the role of sports diplomacy in bilateral relations. Indonesian officials said the deputy minister plans to visit Afghanistan in the future to further advance cooperation.

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