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EU and IFC launch €5 million program to support Afghanistan’s private sector

The initiative is part of broader cooperation between the EU and the World Bank Group to promote inclusive, private sector–led economic recovery in Afghanistan.

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The European Union has launched a new €5 million programme in partnership with the International Finance Corporation (IFC), a member of the World Bank Group, aimed at stabilising Afghanistan’s private sector and supporting job creation across the country.

Under a newly signed administration agreement, the funding will support the Afghanistan Private Sector Stabilisation Programme, which seeks to boost small and medium-sized enterprises (SMEs), encourage entrepreneurship and expand access to financial services.

The initiative is part of broader cooperation between the EU and the World Bank Group to promote inclusive, private sector–led economic recovery in Afghanistan.

The program places a strong emphasis on the economic participation of women, youth and returnees, and will work closely with private sector actors to improve the business environment and create sustainable livelihoods.

It is designed to complement existing EU efforts, particularly in rural development and microfinance, and will be reinforced by future World Bank initiatives.

Scheduled to begin next month and run for 42 months, the program will focus on five key areas: strengthening private sector coordination and advocacy; building the capacity of SMEs and start-ups, especially those involving women, returnees and internally displaced persons; improving financial inclusion; mobilizing private capital to generate jobs in key sectors; and expanding women’s economic participation through greater private sector engagement.

EU Chargé d’Affaires to Afghanistan, Veronika Boskovic Pohar, said the initiative reflects the EU’s comprehensive support for the Afghan population, ranging from humanitarian assistance to longer-term economic recovery. She said the program is intended to promote job creation and entrepreneurship in strategic value chains, with a particular focus on women, youth and returnees.

IFC Regional Director for the Middle East, Pakistan and Afghanistan, Khawaja Aftab Ahmed, said the agreement underscores a shared commitment to supporting Afghan entrepreneurs.

He noted that strengthening businesses is a practical way to protect livelihoods and help Afghans rebuild their economy with dignity, even amid ongoing challenges.

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Red Cross official meets Afghan foreign minister to discuss aid

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Alexander Matheou, the Asia-Pacific Regional Director of the International Federation of Red Cross and Red Crescent Societies (IFRC), met with Afghanistan’s Acting Foreign Minister, Mawlawi Amir Khan Muttaqi, to discuss humanitarian assistance and cooperation.

The meeting focused on emergency aid for returning Afghan refugees and people affected by natural disasters, as well as support for basic needs and the health sector, according to a statement released by Foreign Ministry.

Muttaqi said the Islamic Emirate has given special attention to managing the return of refugees and has mobilized available resources to support the process. He also thanked the IFRC for its assistance to returnees and disaster-affected communities, and praised Afghan institutions for ensuring the timely delivery of aid.

Matheou briefed the minister on the IFRC’s humanitarian activities in Afghanistan over the past year, noting that global humanitarian funding has declined. He said his visit aimed to collect relevant information and engage with partners to help reduce gaps in humanitarian assistance.

He described cooperation with Afghan authorities—particularly the Afghan Red Crescent Society—as effective and expressed hope for further strengthening collaboration.

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Over 1,000 Afghans to be denied entry to Germany despite earlier promises

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More than 1,000 Afghans who were promised entry to Germany following the Islamic Emirate’s return to power in Kabul will be refused permission to resettle, according to a report by Neue Osnabrücker Zeitung on Tuesday.

Citing figures from a parliamentary inquiry, the report stated that nearly half of the 2,308 Afghans awaiting decisions on their applications are now set to be denied entry. Many have been stranded in Pakistan for months or even years, hoping to leave under a German resettlement programme.

Shortly after taking office in May, German Chancellor Friedrich Merz’s conservative-led coalition moved to suspend resettlement schemes for vulnerable Afghans as part of a broader crackdown on migration. The situation became more urgent after Pakistan announced plans to deport Afghan nationals, including those who had already received approval for German resettlement.

Despite the policy shift, around 788 Afghans have managed to resettle in Germany since May, many after successfully challenging the government in court. Another 410 are still in the process of leaving the country.

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Trump again criticizes U.S. withdrawal from Afghanistan, calls Biden ‘very stupid’

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U.S. President Donald Trump has once again criticized the withdrawal of American forces from Afghanistan under former President Joe Biden, calling Biden “very stupid.”

Trump made the remarks on Tuesday during a press conference marking the first anniversary of his second presidential term. During the event, he referred to the 2021 bombing at Kabul International Airport that killed 13 U.S. service members, calling it “the lowest point in the history of our country.”

He said that while he also supported ending the U.S. military presence in Afghanistan, the withdrawal should have been conducted with “dignity and strength.”

Trump argued that U.S. forces should have withdrawn via Bagram Airfield rather than Kabul airport, suggesting that the choice of exit strategy contributed to the chaos surrounding the final days of the evacuation.

The U.S. withdrawal from Afghanistan in August 2021 ended America’s longest war but has remained a subject of sharp political debate, particularly over security failures and the handling of the evacuation process.

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