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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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6.1-magnitude earthquake hits Afghanistan, epicenter in Badakhshan

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A 6.1-magnitude earthquake struck Afghanistan on Saturday afternoon, according to the United States Geological Survey (USGS).

The quake’s epicenter was reported in Jurm district of Badakhshan province, with a depth of 208.3 kilometers.

So far, there have been no immediate reports of casualties or damage following the tremor.

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Delawar says Afghanistan has achieved security and unity after 47 years

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Shahabuddin Delawar, Head of the Commission for Contact with Afghan Personalities, says Afghanistan has achieved security, unified governance, brotherhood, and progress for the first time in 47 years under the administration of the Islamic Emirate of Afghanistan (IEA).

Speaking at a meeting in Kabul on Saturday, Delawar said Afghanistan had lacked a unified system over the past four decades, but added that with the return of the Islamic Emirate, the issue has now been resolved.

Referring to Ashura commemorations held on Friday, he said the occasion was observed peacefully across the country under full security.

Delawar also urged exiled Afghan politicians to return, saying the commission was established to serve Afghans and address the concerns of returning figures. He added that any legal disputes involving returnees would be handled exclusively through the commission.

He further said the Islamic Emirate has expanded treatment centers and intensified anti-narcotics efforts since regaining power, claiming this has led to a significant decline in drug addiction.

Addressing the issue of international legitimacy, Delawar said he understood why the United States has not recognized the Islamic Emirate, arguing that Washington suffered a defeat in Afghanistan that it cannot easily overlook.

“They have suffered a major defeat that they cannot forget; if they recognize us, they will face questions from their own people,” Delawar said.

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EU announces major funding to support Afghan small businesses

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The European Union says it is implementing hundreds of millions of euros in projects to support small and medium-sized enterprises (SMEs) in Afghanistan and help expand economic opportunities across the country.

Speaking to Ariana News, EU Chargé d’Affaires in Kabul, Veronika Boskovic Pohar, said the programs are aimed at creating jobs for skilled workers, women, youth, and returnees, while also strengthening the private sector. She added that alongside international support, Afghan authorities also have a role in facilitating economic growth.

According to Pohar, the EU is currently implementing projects worth €156 million focused on livelihoods, durable solutions, job creation, and women’s economic empowerment. She said an additional €40 million program specifically designed to support returnees will be launched in the near future.

She noted that the EU is gradually shifting its focus from emergency humanitarian aid toward long-term sustainable solutions, particularly for internally displaced people and returnees in Afghanistan.

Meanwhile, the United Nations, marking World Day of Small and Medium Enterprises, said SMEs account for more than 90 percent of businesses worldwide and play a critical role in employment and economic growth.

UN spokesperson Stéphane Dujarric stressed that stronger investment, innovation, and sustainable industrial development are essential to help businesses withstand economic challenges and build resilient economies.

Afghan private sector representatives and economic analysts say greater support for SMEs could help the country address economic challenges faster, increase employment, and promote sustainable long-term development.

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