New grant agreements worth around 350 Million US Dollars were signed between Afghanistan and World Bank with an aim to support the reforms in Afghanistan.
The World Bank in a statement said the grant agreements were signed by Mohammad Humayon Qayoumi, Afghanistan’s acting Minister of Finance, and Shubham Chaudhuri, World Bank Country Director for Afghanistan.
The statement further added that the reforms are designed to improve efficiency and effectiveness in government operations for better revenue mobilization and service delivery. The new financing package supports reforms in the business environment, the energy sector, and land administration to promote economic growth and employment and reduce poverty for all Afghans.
According to World Bank, the new agreements include $300 million for the Incentive Program Development Policy Grant (IP-DPG), including $90 million from the International Development Association (IDA), the World Bank Group’s fund for the poorest countries, and $210 million from the Afghanistan Reconstruction Trust Fund (ARTF), administered by the World Bank on behalf of 34 donors.
The IP-DPG aims to help the Government of Afghanistan continue maintaining a stable macroeconomic environment and pursue an ambitious program of policy reforms to support economic growth, private sector investment, poverty reduction, and improved public financial management.
$50 million for the Public-Private Partnerships and Public Investment Advisory Project, which aims to develop a pipeline of feasible private and publicly funded projects to further develop Afghanistan’s infrastructure, World Bank said, adding that the project will be financed by a $20 million grant from IDA and $30 million co-financing from ARTF.