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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.
Rana Sanaullah, Pakistan Prime Minister’s Special Assistant on Political Affairs, says Islamabad does not seek to impose war on Afghanistan or occupy any part of its territory.
Speaking at a press conference on Saturday, he stated that Pakistan’s primary expectation is for Afghanistan to prevent militant groups from using its soil to launch attacks against Pakistan. He warned that failure to address this concern could lead to the continuation of Pakistani operations targeting such groups.
Pakistani officials have long maintained that militant attacks in Pakistan are planned from Afghan territory. However, the Islamic Emirate has rejected the claim, insisting that Afghanistan is not responsible for what it describes as Pakistan’s “security failures.”
Afghanistan has once again been ranked the least happy country in the world, according to the latest edition of the World Happiness Report.
The report, which measures people’s overall life satisfaction across 147 countries, placed Afghanistan at the bottom of the global ranking for another year, with a score 1.4 out of 10. Researchers assess factors such as income levels, social support, freedom to make life choices, perceptions of corruption, and overall quality of life.
For the ninth consecutive year, Finland ranked as the world’s happiest country, with a score of 7.7. Iceland and Denmark followed it, as Nordic nations continued to dominate the top of the index.
A notable development came from Costa Rica, which climbed to fourth place — the highest ranking ever recorded for a Latin American country.
Other countries with low rankings included Sierra Leone, Malawi, Zimbabwe and Botswana.
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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