The World Bank has committed more than $5.3 billion to development projects in Afghanistan

The World Bank has stopped funding for projects in Afghanistan after the Taliban’s takeover of the country.

Speaking to the BBC a spokesperson from the financial institution said, “We have paused disbursements in our operations in Afghanistan and we are closely monitoring and assessing the situation in line with our internal policies and procedures”.

“We will continue to consult closely with the international community and development partners. Together with our partners, we are exploring ways we can remain engaged to preserve hard-won development gains and continue to support the people of Afghanistan.”

They also mentioned concerns over the impact that the takeover will have over “the country’s development prospects, especially for women”.

The decision by the World Bank to suspend payments to Afghanistan is the latest financial blow to the country’s new government.

This move comes only days after the International Monetary Fund (IMF) halted payments to Afghanistan.

An IMF spokesperson said it was due to a “lack of clarity within the international community” over recognizing a government in Afghanistan.

Around $440m of new monetary reserves had been set to be made available to the country from 23 August.

The Biden administration has also frozen the assets of Afghanistan’s central bank that are held in the US, amounting to roughly $9 billion.

The Washington-based financial institution has committed more than $5.3 billion to development projects in Afghanistan.

The story was filed by the News Desk.
The Desk can be reached at info@thecorrespondent.com.pk.

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