Washington, June 24, 2021— , strengthen governance, and mobilize private investment toward economic recovery.
It complements a $300 million grant from the Afghanistan Reconstruction Trust Fund (ARTF), a multi-donor trust fund managed by the World Bank on behalf of 34 donors.
“Today’s Board approval reaffirms the World Bank’s strong commitment to helping the Afghan people recover and build back better from the COVID-19 pandemic,” said Henry Kerali, World Bank Country Director for Afghanistan. “In these difficult times, the World Bank stands ready to work closely with the government of Afghanistan to maintain its reform momentum and sustain its progress toward inclusive growth and self-reliance.”
Amid political uncertainty, the COVID-19 pandemic has severely impacted Afghanistan’s economy, public finances, and social development outcomes. In 2020, the Afghan economy shrank by around 2 percent as lockdowns drove significant job losses, especially for informal and service workers. In recent months, poverty has likely increased further because of worsening droughts and difficult economic conditions, compounded by intensifying insecurity and political uncertainties.