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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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Afghan health minister calls for medical cooperation between Kabul and New Delhi

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Afghanistan’s Health Minister, Noor Jalal Jalali, held a meeting on Saturday with officials from Pharmaceuticals Export Promotion Council (PharmEXCIL) to discuss expanding cooperation and bilateral relations in the fields of medicines, medical products, and health equipment between Kabul and New Delhi.

In a statement issued by the Afghan Health Ministry, both sides also emphasized strengthening the pharmaceutical industry’s capacity and the importance of providing affordable, high-quality medicines to the public.

The talks also focused on boosting cooperation in medicines, medical products, and healthcare equipment, highlighting affordable and quality drug access.

Jalali called PharmEXCIL’s support crucial for strengthening Afghanistan’s healthcare system and delivering standardized services.

He added the partnership is strategically important for drug safety, quality assurance, and sustainable health services.

PharmEXCIL outlined its work in pharmaceuticals, vaccines, biologics, medical devices, diagnostics equipment, herbal medicines, contract manufacturing, and R&D.

The council, under India’s Ministry of Commerce, oversees the promotion, regulation, and export of Indian medicines and health products.

PharmEXCIL also donated around 100,000 patches to Afghanistan to support treatment of seasonal illnesses.

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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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Karzai urges reopening of girls’ schools and universities for Afghanistan’s bright future

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Former Afghan President Hamid Karzai says knowledge and education are the primary pillars of progress and dignity in any society.

In a post marking the end of the academic year and the preparation of 12th-grade graduates for the Kankor (university entrance) exam, Karzai said on Saturday that Afghanistan needs hundreds of thousands of female and male doctors, engineers, economists, technology specialists, and experts in other fields to become self-reliant.

He called on all students to make greater efforts and to reach higher levels in scientific and social sciences.

He once again emphasized: “I hope that, for a bright future for Afghanistan, girls’ schools and universities should be reopened so that our daughters can stand on their own feet and become worthy of serving the country.”

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