The World Bank has officially opened its new office in Kabul and begun disbursing $50 million in loans to Afghan logistics and construction companies, marking a pivotal step in supporting the nation’s economic recovery.

The decision comes after several rounds of high-level negotiations between the World Bank and the Afghan Ministry of Finance (MoF), which have paved the way for renewed financial cooperation.

According to a statement from the World Bank, the $50 million will be distributed in four phases, beginning with a first installment of $10.8 million that will be transferred directly to the eligible companies starting Monday. The remaining $39.11 million will be channeled through the Ministry of Finance in three additional stages, under strict oversight and coordination.

The Ministry of Finance welcomed the development, describing it as a “major financial milestone” for the country. Officials said the funds will help kick-start key infrastructure and development projects that have been stalled due to financial constraints, while also generating much-needed employment opportunities.

“We believe this initiative will revitalize the private sector, particularly in construction and logistics, and strengthen the foundation of Afghanistan’s national economy,” a Ministry spokesperson said.

The move signals a cautious but important re-engagement by the World Bank in Afghanistan’s economic landscape, as international institutions seek new ways to support development in the country amid ongoing humanitarian and financial challenges. (ILKHA)