World Bank reopens Kabul office after hiatus, agrees to repay $50 mn for previous project works

KABUL, May 19 : The World Bank has reopened its Kabul office nearly four years after suspending operations in Afghanistan, following the US’ retreat from the country and the Taliban’s return to power in August 2021.
The Taliban-led Ministry of Finance announced that the World Bank has agreed to repay around 50 million dollars ( 39m) owed to Afghan logistics and construction companies for work carried out under previous projects, reports Khamma News.
The payments, the ministry said, will be made in four instalments, with an initial $10.8 million ( 8.5m) to be disbursed directly to the companies. The remaining $39.1 million will be routed through the Ministry of Finance in three further phases.
The international body’s re-engagement with the country is a cautious one, as it resumes its oversight of pre-existing development programmes rather than launching new initiatives.
The repayment scheme is being portrayed by the de facto government as a step towards restoring stalled infrastructure and public service projects, many of which were frozen or abandoned after the fall of the Western-backed administration.
The ministry claims the renewed funding will help revive employment, support local businesses, and generate modest economic activity in a country teetering on the brink of collapse.
The World Bank has so far made no public comment on the debt repayments or its decision to reopen the office. Its original withdrawal in 2021 followed a freeze in international aid and recognition, as donors grappled with how to engage with the Taliban without legitimising its rule or breaching sanctions.
Afghanistan remains in the grip of a deepening humanitarian crisis. According to the United Nations, more than 23 million people over half the population are in need of urgent assistance. Years of conflict, economic isolation, and climate-induced drought have left basic services in tatters. Food insecurity, lack of access to clean water and overwhelmed health systems are pushing many Afghans into extreme poverty.
International aid has dwindled, with many NGOs forced to scale back operations due to funding shortfalls, restrictions on female staff and concerns over transparency. Humanitarian agencies continue to urge the international community to increase support while finding new channels to deliver aid without empowering the Taliban.
The World Bank’s re-entry, though limited, will be closely watched by donors and governments weighing how to maintain support for the Afghan people under an unrecognised regime.
(UNI)