World Bank Rejects Taliban’s Claim of Owing $50 Million to Afghan Firms

KABUL, AFGHANISTAN – The World Bank has denied the Taliban’s claim that it owes $50 million to Afghan companies, saying that the outstanding debts belong to the former Afghan government, not the bank.

The Taliban Ministry of Finance announced on Monday that the World Bank would resume operations in Afghanistan. It also claimed the bank would pay $50 million owed to Afghan logistics and construction firms.

The ministry described this as a “major financial breakthrough,” saying it would help restart stalled development projects and create jobs.

In a statement on Tuesday, the World Bank clarified that the contracts were signed between the contractors and the former republic government. Therefore, the responsibility for paying these debts lies with that government, not the World Bank.

The bank added that the contracting companies completed their work on World Bank-funded projects before the Taliban took power in August 2021 but have not yet been paid.

The World Bank stressed that it was not a party to these contracts. It said it is only facilitating the payment process on an “exceptional basis” after thorough validation and independent third-party verification.

The bank also rejected the Taliban Ministry of Finance’s claim about resuming previous projects, saying no agreement or discussion has taken place.

Since the Taliban takeover, the World Bank has allocated over $1.7 billion in aid to Afghanistan, focusing mainly on supporting women and girls. The bank highlighted that all funds have been distributed independently of Taliban authorities.

Furthermore, the World Bank confirmed its financial support for the CASA-1000 energy project, based on requests from Afghanistan’s neighboring countries and board approval, with financing kept outside Taliban control.