The World Bank's announcement of halting payments for operations in Afghanistan sends shockwaves through the country's already struggling business sector, grappling with soaring food prices due to its reliance on foreign aid.
Marcela Sanchez-Bender, the World Bank's spokesperson, expressed deep concerns over the situation in Afghanistan and its implications on the country's development prospects, particularly for women. The World Bank has provided over 5.3 billion dollars for development projects in Afghanistan, with the Afghanistan Reconstruction Trust Fund collecting well over 12.9 billion dollars.
Sanchez-Bender clarified that the World Bank had suspended payments for Afghanistan operations, observing and assessing the situation in accordance with their internal policies and procedures. The World Bank partly attributes Afghanistan's financial woes to political instability and economic isolation, both major challenges in a country heavily reliant on foreign aid.
The collapse of the U.S. supported regime in Kabul led to the plummet of the country's currency to historic lows and the looming threat of inflation. Warning of economic difficulties, the former Governor of the Afghan Central Bank, Ajmal Ahmadi, pleaded for continued international support, urging the need for increased humanitarian aid.
Once a beacon of economic stability in the region, Afghanistan now faces an uncertain future. The halt in financial aid from the World Bank adds to Afghanistan's mounting challenges, making it essential for the International community and Development partners to reconsider their engagement strategies and rally to support the Afghan people's plight.
