The World Bank has agreed to reopen its office in Kabul, nearly four years after shutting down operations in Afghanistan. The move follows months of discussions between the bank and Afghanistan’s Ministry of Finance and was welcomed by the Taliban-led government, which sees the return of the institution as a step toward economic recovery and national reconstruction.
As part of the agreement, the World Bank, which is an institution within the United Nations, will also pay $50 million in outstanding debts owed to Afghan companies for work completed on previous development projects.
The World Bank closed its Kabul office in August 2021 and suspended operations in the country following the Taliban's return to power after the collapse of the U.S.-backed Afghan government. The abrupt withdrawal halted numerous World Bank–financed initiatives, including projects in infrastructure, energy, transportation, agriculture, and healthcare. Since then, the Afghan government has struggled to independently restart many of these efforts due to lack of funding, despite domestic appeals to resume them.
The bank’s return is widely expected to lead to the resumption of some of these stalled projects. Additionally, the World Bank, which previously raised alarms over worsening food security in Afghanistan, may now play a role in addressing the country’s ongoing humanitarian challenges.
Monday’s announcement comes amid a broader push by the Taliban-led government to normalize its international standing. Over the past year, Afghanistan has made strides in gaining limited diplomatic recognition and international engagement. Countries such as Russia, Kazakhstan, and Kyrgyzstan have removed the Taliban from their lists of banned organizations, and Afghan officials are increasingly participating in global forums.
This week, Afghan Foreign Minister Amir Khan Muttaqi visited both China and Iran to strengthen bilateral ties with neighboring countries. In Tehran, Muttaqi met with Iranian President Massoud Pezeshkian and attended the Tehran Dialogue Summit. Meanwhile, Afghan Justice Minister Abdul Hakim Sharaei is in Russia for the International Legal Forum in St. Petersburg.
The expanded international engagement is likely part of a broader strategy by the Afghan government to build support within the United Nations for eventual formal recognition by the UN General Assembly—an outcome that would allow a Taliban-appointed ambassador to assume Afghanistan’s seat at the UN. and seal the Taliban-led governments legitimacy.