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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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Herat governor urges UN to prioritize Afghan domestic products in food purchases

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Noor Ahmad Islamjar, the governor of Herat, has urged the United Nations to give priority to domestic Afghan products when procuring food and essential goods.

According to a statement from the Herat governor’s office, Islamjar met with Indrika Ratwatte, the UN humanitarian coordinator in Afghanistan, and Arafat Jamal, Representative of the UN High Commissioner for Refugees (UNHCR) office in Afghanistan.

During the meeting, the governor praised the UN’s cooperation and described the support provided during the first wave of returning migrants as a significant success. He emphasized that the local administration is fully prepared to address the needs of any potential new wave of migrants.

Islamjar also stressed the importance of international support in expanding foreign markets for Afghan agricultural and industrial products, and called for easing banking restrictions, facilitating visa issuance, and improving online services for the private sector and local traders.

In response, Indrika Ratwatte welcomed the governor’s proposals and assured that the UN would strive to source necessary goods from Afghan domestic products in the future, while continuing its cooperation with the local administration across various sectors.

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Four civilians killed in Khost overnight in Pakistani military attacks

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Hamdullah Fetrat, Deputy Spokesperson of the Islamic Emirate, reported on Thursday that four civilians were killed overnight in Khost province during artillery and mortar shelling by the Pakistani military.

The attacks occurred around 4:00 a.m. in Alishir-Trezi district.

The victims were members of a nomadic family, including a man, a woman, and two children. Three additional children were injured in the strikes.

The Pakistani military also carried out attacks in Kunar province last night. While no casualties were reported there, several homes and private properties were damaged.

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China urges de-escalation in Iran crisis and Afghanistan–Pakistan tensions

Wang noted that China’s Special Envoy for Afghan Affairs is currently shuttling between the two countries to help promote dialogue and reconciliation.

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China has called for restraint and dialogue amid rising regional tensions, saying diplomatic efforts are needed to prevent further escalation in both the Iran crisis and the border clashes between Afghanistan and Pakistan.

According to China’s Foreign Ministry, Wang Yi, the Foreign Minister of China, held a phone conversation with Mohammad Ishaq Dar, Pakistan’s Deputy Prime Minister and Foreign Minister, to discuss recent developments.

During the call, Wang said the key to preventing further escalation in Iran lies in halting military operations by the United States and Israel. He said China does not condone attacks on Gulf states and strongly condemns strikes against civilians and civilian infrastructure.

The discussion also addressed the recent clashes between Afghanistan and Pakistan.

Wang noted that China’s Special Envoy for Afghan Affairs is currently shuttling between the two countries to help promote dialogue and reconciliation.

He emphasized that the immediate priority is to prevent further escalation and ensure a swift return to negotiations between the two sides.

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