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World Bank works to redirect frozen funds for humanitarian aid only

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The World Bank is finalizing a proposal to deliver up to $500 million from a frozen Afghanistan aid fund to humanitarian agencies, people familiar with the plans told Reuters, but it leaves out tens of thousands of public sector workers and remains complicated by U.S. sanctions.

Board members will meet informally on Tuesday to discuss the proposal, hammered out in recent weeks with U.S. and U.N. officials, to redirect the funds from the Afghanistan Reconstruction Trust Fund (ARTF), which has a total of $1.5 billion, Reuters reported.

Afghanistan’s 39 million people face a collapsing economy, a winter of food shortages and growing poverty three months after the the former government collapsed.

Afghan experts said the aid will help, but big gaps remain, including how to get the funds into Afghanistan without exposing the financial institutions involved to U.S. sanctions, and the lack of focus on state workers, the sources said.

The money will go mainly to addressing urgent health care needs in Afghanistan, where less than 7% of the population has been vaccinated against the coronavirus, they said.

For now, it will not cover salaries for teachers and other government workers, a policy that the experts say could hasten the collapse of Afghanistan’s public education, healthcare and social services systems.

They warn that hundreds of thousands of workers, who have been unpaid for months, could stop showing up for their jobs and join a massive exodus from the country.

The World Bank will have no oversight of the funds once transferred into Afghanistan, said one of the sources familiar with the plans. A U.S. official stressed that UNICEF and other recipient agencies would have “their own controls and policies in place.”

“The proposal calls for the World Bank to transfer the money to the U.N. and other humanitarian agencies, without any oversight or reporting, but it says nothing about the financial sector, or how the money will get into the country,” the source said, calling U.S. sanctions a major constraint.

While the U.S. Treasury has provided “comfort letters” assuring banks that they can process humanitarian transactions, concern about sanctions continues to prevent passage of even basic supplies, including food and medicine, the source added.

“We’re driving the country into the dust,” said the source. Crippling sanctions and failure to take care of public sector workers will “create more refugees, more desperation and more extremism.”

A State Department spokesperson confirmed that Washington is working with the World Bank and other donors on how to use the funds, including potentially paying those who work in “critical positions such as healthcare workers and teachers.”

The spokesperson said the U.S. government remains committed to meeting the  critical needs of the  Afghan people, “especially across health, nutrition, education, and food security sectors … but international aid is not a silver bullet.”

Established in 2002 and administered by the World Bank, the ARTF was the largest financing source for Afghanistan’s civilian budget, which was more than 70% funded by foreign aid.

The World Bank suspended disbursements after the Islamic Emirate of Afghanistan (IEA) takeover. At the same time, Washington stopped supplying U.S. dollars to the country and joined in freezing some $9 billion in Afghan central bank assets and halting financial assistance.

One major problem is the lack of a mechanism to monitor disbursements of funds in Afghanistan to ensure Taliban leaders and fighters do not access them, a third source said.

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Pakistan says trade with Afghanistan will remain suspended until security assurances

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Pakistan’s Foreign Ministry spokesperson, Tahir Andarabi, stated on Friday that trade with Afghanistan will remain suspended until Islamabad receives firm assurances from Kabul.

The crossings “will remain closed until we receive firm assurances from the Afghan side that violence, violent elements, and terrorists from their soil will not cross over into Pakistan to perpetrate the crimes they have committed,” Andarabi said.

He emphasized that the concern is not limited to the TTP, but also includes Afghan nationals involved in attacks inside Pakistan.

The crossings were closed on October 12 following Pakistani airstrikes in Afghanistan and deadly clashes near the Durand Line.

Despite the closure, Pakistan has allowed the return of refugees and the passage of humanitarian assistance.

Islamabad has repeatedly cited militancy as a key reason for restricting movement along the Durand Line and has called for stronger cooperation from Kabul to prevent attacks and ensure regional security.

The Islamic Emirate has, however, has said it cannot be held responsible for security inside Pakistan.

IEA spokesman Zabihullah Mujahid recently said that trade routes will reopen when strong assurances are obtained from the Pakistani government that it will not use closure as a mean to apply political pressure.

 

 

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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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