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World Bank provides $200 million for Afghanistan to protect people, support businesses amid COVID-19

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Last Updated on: October 25, 2022

The World Bank Board of Executive Directors on Thursday approved a $200 million grant to help Afghanistan mitigate COVID-19 impacts and provide relief to vulnerable people and businesses.

In a statement released on Thursday, the World Bank said that the Afghanistan COVID-19 Response Development Policy Grant comprises $100 million from the International Development Association (IDA), the World Bank Group’s fund for the poorest countries, and $100 million from the Afghanistan Reconstruction Trust Fund (ARTF), managed by the World Bank on behalf of 34 donors.

The Afghanistan COVID-19 Response Development Policy Grant will support the government of Afghanistan to strengthen policies that promote faster recovery and keep basic infrastructure such as water, electricity, and telecommunications afloat and running, the statement said.

“The program will provide vital fiscal resources to manage the impacts of the pandemic in the context of rapidly slowing economic growth and declining government revenues,” said Henry Kerali, World Bank Country Director for Afghanistan.

“Policy actions supported by the program will both help mitigate the impacts of the current crisis on the poor and vulnerable and also lay critical foundations for longer-term recovery. The World Bank will continue to stand with the people of Afghanistan through this crisis,” Kerali added.

The World Bank said that the COVID-19 pandemic has had significant adverse health, social, and economic impacts in Afghanistan, shrinking the economy and driving down public revenue.

“The grant will support changes in regulations to increase access to finance for small and medium-sized enterprises, protect healthcare workers, and raise awareness on gender-based violence in schools,” it stated.

The organization added that it will also support plans to encourage students to return to school when educational institutions are to reopen after the COVID-19 crisis.

It comes as the number of COVID-19 cases has risen to 33,908 with 957 and 20,847 recoveries in Afghanistan.

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Ariana Afghan Airlines boost air trade with arrival of new cargo aircraft

The Ariana Afghan Airlines press office says this achievement marks an important stride toward strengthening national trade and promoting Afghanistan’s path to economic self-reliance.

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Ariana Afghan Airlines has announced a major development in the country’s air-transport sector, confirming that a long-awaited charter cargo aircraft has been officially contracted and will arrive in Afghanistan soon. The move is being hailed as a “significant and facilitative breakthrough” for national traders.

Bakht-ur-Rahman Sharafat, the head of Ariana Afghan Airlines, says the finalization of this contract reflects the leadership’s firm commitment to supporting Afghanistan’s growing trade sector. “This new cargo aircraft is part of Ariana’s broader plan to strengthen exports and provide fast, reliable, and competitive air-transport services for Afghan traders,” Sharafat stated.

According to Ariana officials, the addition of the new cargo aircraft will greatly enhance commercial air-transport services. It is expected to ensure timely delivery of goods, reduce transportation costs, and significantly increase the country’s export capacity.

Economic experts believe this step will not only offer substantial facilities to traders but will also play a key role in Afghanistan’s economic development and the expansion of its export markets.

Ariana’s leadership says the cargo aircraft will open new avenues for accelerating and securing the movement of both export and import goods, while fostering healthy competition within the nation’s aviation sector.

The Ariana Afghan Airlines press office says this achievement marks an important stride toward strengthening national trade and promoting Afghanistan’s path to economic self-reliance.

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IEA demands assurances from Islamabad before trade routes reopen

Mujahid noted that Afghanistan is currently meeting its essential import needs through a range of regional partners, and therefore will not rush to resume commerce with Pakistan without clear assurances.

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The Islamic Emirate of Afghanistan (IEA) has said that the reopening of trade and transit routes with Pakistan will depend on Islamabad providing firm guarantees that these corridors will not again be used as instruments of political pressure.

In a statement released on social media, IEA spokesperson Zabihullah Mujahid accused Pakistan of having “illegally and politically” closed key border routes in recent months, a move he said caused “serious harm to the people on both sides of the Durand Line.”

Mujahid noted that Afghanistan is currently meeting its essential import needs through a range of regional partners, and therefore will not rush to resume commerce with Pakistan without clear assurances.

He said the IEA wants trade to take place in a “dignified and mutually beneficial” manner and made clear that any reopening will require Islamabad to commit to keeping commercial corridors free from political interference.

“Trade routes with Pakistan will only be reopened once strong assurances are received from the Pakistani government,” he said, adding that the guarantees must ensure Pakistan cannot again weaponise transit access or disrupt legitimate trade.

According to the IEA, the priority is to safeguard traders’ rights, stabilise cross-border transit, and ensure that the economic needs of the population are not influenced by political disputes.

The IEA said any step toward reopening the routes must be built on mutual respect and a long-term commitment to cooperation.

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Ariana Airlines deepens cooperation with Turkish Airlines

Both sides agreed to form joint technical and operational teams to advance cooperation and strengthen the regional air transport network.

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Ariana Afghan Airlines and Turkish Airlines have moved to strengthen their aviation partnership following a high-level meeting between Ariana CEO Bakht-ur-Rahman Sharafat and Turkish Airlines CEO Bilal Ekşi.

According to Ariana Afghan Airlines, the discussions centered on expanding air transport connectivity, improving passenger and cargo services, and increasing the exchange of technical and operational expertise between the two carriers.

Sharafat praised Turkish Airlines for its global reach and operational standards, noting that the airline’s experience could play a vital role in enhancing air travel, trade, and tourism between Afghanistan and Turkey.

Ekşi commended Ariana’s recent improvements and said Turkish Airlines would support capacity-building initiatives, including technical training, aircraft maintenance, and operational enhancement programs.

Both sides agreed to form joint technical and operational teams to advance cooperation and strengthen the regional air transport network. The move marks a significant step toward deeper aviation collaboration between the two countries.

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