World Bank Approves $400 Million to Sustain Afghanistan’s Reform Momentum, Mitigate COVID-19 Crisis

Washington, May 7, 2020— [tweetquote:[tweetText=The World Bank Board of Executive Directors today approved a $400 million grant to help Afghanistan sustain the pace of key economic and public finance reforms, and support the country to manage current risks and uncertainties compounded by the COVID-19 crisis.,tweetData=WorldBankSAsia,tweetHash=]]

The Incentive Program Development Policy Grant comprises $160 million from the International Development Association (IDA), the World Bank Group’s fund for the poorest countries, and $240 million from the Afghanistan Reconstruction Trust Fund (ARTF), managed by the World Bank on behalf of 34 donors.

[tweetquote:[tweetText=The Incentive Program Development Policy Grant will support a range of key reforms to improve business regulation and encourage private investment, expand social inclusion and support civil service reforms,tweetData=WorldBankSAsia,tweetHash=]], increase resilience to natural disasters, improve tax administration and public financial management, and safeguard fiscal sustainability.

“Today’s Board approval is a strong indication that the World Bank is redoubling its efforts to help Afghanistan and its people beyond the current COVID-19 crisis,” said Henry Kerali, World Bank Country Director for Afghanistan. “This assistance will help Afghanistan maintain its reform momentum throughout a difficult period and provide vital financial support to the government to manage revenue shortfalls arising from coronavirus impacts.”

Afghanistan faces major challenges and uncertainties in 2020. The global COVID-19 pandemic has had an immediate negative impact on Afghanistan. Border closures have severely impacted government customs receipts, while measures to contain the spread of the virus are likely to have a strong negative impact on economic activity. Poverty remains deep and widespread, while security and political uncertainties continue.

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