The World Bank has declared the discontinuing of aid to Afghanistan, following the Taliban’s sudden takeover of the nation.
The World Bank declared that it is “deeply concerned” by the circumstances in Afghanistan and the influence on the country’s development view, particularly concerning women’s rights.
The World Bank spokesperson said that the bank has suspended payments in its operations in Afghanistan and strictly controls and values the situation in line with its internal policies and procedures.
The spokesperson continued stating that the World Bank will remain to discuss closely with the international community and development associates and investigate methods to remain engaged to protect hard-won growth gains and extend to assist the people of Afghanistan.
The World Bank has given almost $5.3 billion to Afghanistan since 2002, frequently in grants. It also has over two dozen continuing improvement projects in the country.
World Bank leaves Kabul-based team
The World Bank has drawn out all its staff and their direct families from Afghanistan. The Kabul-based organisation of the World Bank was carefully evacuated to Pakistan on August 20, 2021, as per sources.
Background
The stoppage of funds supports the Taliban’s forceful takeover of Afghanistan in the wake of the removal of US and NATO troops from the country.
Significance
•The World Bank’s progress of suspending aid to Afghanistan comes less than a week after the International Monetary Fund suspended payments to Afghanistan.
•The International Monetary Fund (IMF) has discontinued works with Afghanistan, including an existing $370 million loan program and $340 million that Kabul was due to receive from the release of Special Drawing Rights (SDR), the lender’s basket of currencies.
•The United States also suspended billions of dollars worth of assets from American accounts held in Afghanistan’s central bank. The US also declared that it will refuse the Taliban entrance to the country’s gold and cash reserves, most of which is taken overseas.
