In a significant development for Afghanistan’s struggling economy, the World Bank has officially reopened its office in Kabul and announced the phased resumption of payments to local logistics and construction companies.
According to a statement released by the Afghan Ministry of Finance on Monday, nearly 50 million U.S. dollars will be disbursed to firms that have awaited long-overdue payments since the disruption of aid programs in 2021.
The reopening follows months of constructive negotiations between Afghan finance ministry officials and World Bank representatives. The bank’s return to Afghanistan signals a cautious but important step toward re-engagement with the international financial system.
The World Bank, along with other international donors, had suspended financial aid to Afghanistan after the Taliban took control of the country in August 2021. That decision led to the freezing of major development projects and halted economic progress in a nation already facing deep humanitarian and infrastructure challenges.
The Finance Ministry’s statement confirmed that the World Bank will disburse the funds in four phases. In the initial phase, 10.8 million U.S. dollars will be delivered to eligible companies, with the remaining 39.11 million dollars scheduled for release over three additional installments.
The phased approach is designed to ensure transparency and effective tracking of funds as the World Bank evaluates the operational capacity and governance standards of institutions within Afghanistan. The Ministry noted that this support would play a key role in restarting stalled development projects and reviving business confidence among local contractors and suppliers.
By reopening its office in Kabul, the World Bank reaffirms its commitment to supporting the people of Afghanistan, even amid complex political and security conditions. This step also raises hopes for the gradual resumption of broader development initiatives that are critical for stabilizing the country’s fragile economy and restoring international trust in its financial systems.