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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.
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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Afghan, Saudi foreign ministers discuss bilateral ties and regional issues in phone call
Afghanistan’s Foreign Minister, Amir Khan Muttaqi, held a phone conversation with his Saudi counterpart, Prince Faisal bin Farhan Al-Saud, focusing on strengthening bilateral relations, addressing the concerns of Afghan nationals in Saudi Arabia, and discussing key regional developments.
During the call, Muttaqi described the expansion of ties between Kabul and Riyadh as important and expressed appreciation for Saudi Arabia’s efforts to support regional stability, according to a statement released the by Afghan Foreign Ministry.
He also thanked Saudi authorities for facilitating services for Afghans residing in the kingdom, particularly in areas related to consular support and information-sharing. He emphasized the need to further strengthen human resources and capacity within diplomatic missions.
The Saudi foreign minister, in turn, underscored the importance of enhancing diplomatic relations between the two countries and welcomed efforts aimed at improving the capacity of Afghan diplomatic representations.
Both sides highlighted the importance of regional stability for all countries and stressed that challenges should be addressed through dialogue and diplomatic engagement.
The conversation concluded with an agreement to continue mutual engagement and to arrange in-person meetings at a suitable time.
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Six Pakistani soldiers killed in clashes with Afghan forces in Kandahar
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Bayat Power extends gas supply deal with Afghan Gas
Bayat Power is currently the country’s largest private electricity producer and operates Bayat Power-1, Afghanistan’s first modern gas-to-electricity plant.
Bayat Power has renewed its natural gas supply agreement with Afghan Gas, securing the continued production of 40 megawatts of electricity for the next ten years.
The extension ensures that power generated from domestic gas will continue to be distributed through the country’s power utility, Da Afghanistan Breshna Sherkat (DABS), supporting households and contributing to economic activity nationwide.
A senior official from Bayat Power, Haji Ismael, welcomed the agreement, stating:
“We are very pleased to witness today the extension of the gas purchase and sale contract with Afghan Gas Company.
“As you know, Bayat Power Company has been generating forty megawatts of electricity from gas in Sheberghan Province for several years, and it is distributed through Breshna Company. This process will continue for another ten years with the extension of the contract. I would like to thank Afghan Gas Company and its leadership” he said.
Ismael added that the agreement aligns with the company’s long-term vision of supporting Afghanistan’s development through reliable, locally generated energy.
Officials from Afghan Gas in Jawzjan reaffirmed their commitment to maintaining a stable gas supply, noting that domestic energy production remains an important pillar for long-term stability and self-reliance.
Bayat Power’s facility in northern Afghanistan continues to play a key role in the country’s energy mix.
The renewed agreement follows a separate extension signed earlier this year between DABS and Bayat Power, which also secured power production for an additional ten years—reinforcing a key public-private partnership in Afghanistan’s energy sector.
Alongside the extension, the two sides signed a technical memorandum of understanding aimed at strengthening operational cooperation.
Bayat Power is currently the country’s largest private electricity producer and operates Bayat Power-1, Afghanistan’s first modern gas-to-electricity plant. At the time of the earlier agreement, Chairman Ehsanullah Bayat said the company remains committed to delivering reliable, affordable and sustainable electricity, while also exploring opportunities to expand production capacity.
The project itself represents a major milestone in Afghanistan’s energy development. Built as a public-private partnership, it brings together Bayat Power, Siemens Energy, Afghan government institutions—including the Ministries of Mines and Petroleum and Energy and Water—Afghan Gas, and DABS. The facility uses Siemens Energy’s advanced SGT-A45 mobile gas turbine, known for its efficiency and flexibility, and remains a cornerstone of the country’s push toward greater energy independence.
Overall, the renewed agreement is seen as a significant step toward strengthening domestic energy production, reducing reliance on imports, and supporting Afghanistan’s long-term economic development.
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