World Bank approves $1bn to fund urgent needs in Afghanistan

Funds will be disbursed through UN and aid agencies, bypassing the Taliban, to ease worsening humanitarian crisis.

A displaced Afghan woman holds her child
Funding cuts have accelerated an economic collapse in the country [File: Zohra Bensemra/Reuters]

The executive board of the World Bank has approved a plan to use more than $1bn from a frozen Afghanistan trust fund to finance urgently needed education, agriculture, health and family programmes, the bank has announced.

The plan, which will bypass sanctioned Taliban authorities by disbursing the money through United Nations agencies and international aid groups, will provide a major boost to efforts to ease the country’s worsening humanitarian and economic crises, the bank said on Tuesday.

The approach “aims to support the delivery of essential basic services, protect vulnerable Afghans, help preserve human capital and key economic and social services, and reduce the need for humanitarian assistance in the future,” the bank said in a statement.

Afghanistan Reconstruction Trust Fund (ARTF) was frozen in August when the Taliban overran Kabul as the last United States-led international troops departed after 20 years of war.

Foreign governments ended financial aid constituting more than 70 percent of government expenditures while the US led in the freezing of some $9bn in Afghan central bank funds.

The funding cuts accelerated an economic collapse, worsening a cash crunch and deepening a humanitarian crisis that the United Nations says has pushed more than half of Afghanistan’s population of 39 million people to the verge of starvation.

The World Bank statement said that as a first step, ARTF donors will decide on four projects worth about $600m that will support “urgent needs in education, health and agricultural sectors, as well as community livelihoods”.

There will be a “strong focus on ensuring that girls and women participate and benefit from the support,” the statement continued.

The Taliban has unravelled gains in rights made by women during the last two decades, including restricting them from working and limiting their travel unless accompanied by a close male relative.

Most girls have been barred from going to school beyond seventh grade since the Taliban takeover. The group says that all girls will be allowed to return to classrooms later this month.

Source: Reuters