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World Bank to Inject $350 Million into Afghan Financial Sector

According to the World Bank, there is the possibility that economic growth in the country could slump next year in the face of elections and drought.

The Ministry of Finance (MoF) and the World Bank (WB) on Monday signed a new package of grant agreements aimed at supporting the Afghan government’s reform agenda. The agreements, valued at around $300 million, will be spent on improving efficiency and effectiveness in government operations for better revenue mobilization and service delivery.

Afghanistan’s ministry of finance has said that the package will help in supporting efficiency and effectiveness in government operations.

“The Ministry of Finance and World Bank today signed a new package of grant agreements in support of reforms valued at $350 million. The reforms are designed to improve efficiency and effectiveness in government operations for better revenue mobilization and service delivery. The new financing package supports reforms in the business environment, the energy sector, and land administration to promote economic growth and employment and reduce poverty for all Afghans,” the World Bank said in a statement on Monday.

Mohammad Humayon Qayoumi, Afghanistan’s acting Minister of Finance, and Shubham Chaudhuri, World Bank Country Director for Afghanistan signed the new package of grant agreements.

“This new World Bank support is fully aligned with the Afghanistan National Peace and Development Framework, which will strengthen the policy framework to support state effectiveness, private sector investment, growth, poverty reduction, and improve public financial management ,” said Qayoumi at the signing ceremony.

The money will also cover areas such as development of the private sector, investment opportunities and boosting small businesses.

According to the World Bank, there is the possibility that economic growth in the country could slump next year in the face of elections and drought.

Qayoumi meanwhile thanked the World Bank and donors of the Afghanistan Reconstruction Trust Fund (ARTF) and said he hopes they continue their contributions in areas that are vital to Afghanistan’s economic growth.

Today’s signed package includes:

•          $300 million for the Incentive Program Development Policy Grant (IP-DPG), including $90 million from the International Development Association (IDA), the World Bank Group’s fund for the poorest countries, and $210 million from the Afghanistan Reconstruction Trust Fund (ARTF), administered by the World Bank on behalf of 34 donors. The IP-DPG aims to help the Government of Afghanistan continue maintaining a stable macroeconomic environment and pursue an ambitious program of policy reforms to support economic growth, private sector investment, poverty reduction, and improved public financial management.

•          $50 million for the Public-Private Partnerships and Public Investment Advisory Project, which aims to develop a pipeline of feasible private and publicly funded projects to further develop Afghanistan’s infrastructure. The project will be financed by a $20 million grant from IDA and $30 million co-financing from ARTF.

The agreements were signed in the presence of Hartwig Schafer, a newly appointed World Bank Vice President for South Asia, who is currently visiting Afghanistan to discuss reforms and development progress in the country with the Afghan government and its international partners.

Speaking about the Public-Private Partnerships and Public Investment Advisory Project, Hartwig Schafer said: “This is a step towards maximizing the financing available for Afghanistan’s development. By mobilizing private capital for large investments, this project can boost progress towards some of Afghanistan’s key development priorities. It is a way to create partnerships that can benefit not only the Government and private sector businesses, but most importantly the people of Afghanistan.”

World Bank is one of Afghanistan's key donors and has so far provided billions of dollars for various projects in the country.

Officials at the ministry of finance have said that the money will be spent through Afghanistan’s national budget.v

Business

World Bank to Inject $350 Million into Afghan Financial Sector

According to the World Bank, there is the possibility that economic growth in the country could slump next year in the face of elections and drought.

Thumbnail

The Ministry of Finance (MoF) and the World Bank (WB) on Monday signed a new package of grant agreements aimed at supporting the Afghan government’s reform agenda. The agreements, valued at around $300 million, will be spent on improving efficiency and effectiveness in government operations for better revenue mobilization and service delivery.

Afghanistan’s ministry of finance has said that the package will help in supporting efficiency and effectiveness in government operations.

“The Ministry of Finance and World Bank today signed a new package of grant agreements in support of reforms valued at $350 million. The reforms are designed to improve efficiency and effectiveness in government operations for better revenue mobilization and service delivery. The new financing package supports reforms in the business environment, the energy sector, and land administration to promote economic growth and employment and reduce poverty for all Afghans,” the World Bank said in a statement on Monday.

Mohammad Humayon Qayoumi, Afghanistan’s acting Minister of Finance, and Shubham Chaudhuri, World Bank Country Director for Afghanistan signed the new package of grant agreements.

“This new World Bank support is fully aligned with the Afghanistan National Peace and Development Framework, which will strengthen the policy framework to support state effectiveness, private sector investment, growth, poverty reduction, and improve public financial management ,” said Qayoumi at the signing ceremony.

The money will also cover areas such as development of the private sector, investment opportunities and boosting small businesses.

According to the World Bank, there is the possibility that economic growth in the country could slump next year in the face of elections and drought.

Qayoumi meanwhile thanked the World Bank and donors of the Afghanistan Reconstruction Trust Fund (ARTF) and said he hopes they continue their contributions in areas that are vital to Afghanistan’s economic growth.

Today’s signed package includes:

•          $300 million for the Incentive Program Development Policy Grant (IP-DPG), including $90 million from the International Development Association (IDA), the World Bank Group’s fund for the poorest countries, and $210 million from the Afghanistan Reconstruction Trust Fund (ARTF), administered by the World Bank on behalf of 34 donors. The IP-DPG aims to help the Government of Afghanistan continue maintaining a stable macroeconomic environment and pursue an ambitious program of policy reforms to support economic growth, private sector investment, poverty reduction, and improved public financial management.

•          $50 million for the Public-Private Partnerships and Public Investment Advisory Project, which aims to develop a pipeline of feasible private and publicly funded projects to further develop Afghanistan’s infrastructure. The project will be financed by a $20 million grant from IDA and $30 million co-financing from ARTF.

The agreements were signed in the presence of Hartwig Schafer, a newly appointed World Bank Vice President for South Asia, who is currently visiting Afghanistan to discuss reforms and development progress in the country with the Afghan government and its international partners.

Speaking about the Public-Private Partnerships and Public Investment Advisory Project, Hartwig Schafer said: “This is a step towards maximizing the financing available for Afghanistan’s development. By mobilizing private capital for large investments, this project can boost progress towards some of Afghanistan’s key development priorities. It is a way to create partnerships that can benefit not only the Government and private sector businesses, but most importantly the people of Afghanistan.”

World Bank is one of Afghanistan's key donors and has so far provided billions of dollars for various projects in the country.

Officials at the ministry of finance have said that the money will be spent through Afghanistan’s national budget.v

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