The Afghan government and the German KfW Development Bank signed a financial agreement on Thursday in which Germany will provide 6.44 billion AFs in aid to government.

The budget will be allocated to the Afghanistan Reconstruction Trust Fund (ARTF), administered by the World Bank, the German Cooperation with Afghanistan said in a press release on Thursday. 

Since the fund’s creation in 2002, Germany has contributed almost 47 billion AFs, the statement said. 

“Helping the Afghan people to overcome poverty and to strengthen their self-reliance is of genuine interest to German Cooperation. We are looking forward to a continuous collaboration with the ARTF to achieve these goals,” the head of the German Cooperation at the German Embassy in Kabul, Uwe Gehlen, said. 

“The government of Afghanistan appreciates Germany’s support in assisting Afghanistan on its path to building a stable democracy. By contributing to the Afghanistan Reconstruction Trust Fund - ARTF, these agreements help the government of Afghanistan to move towards efficiency and self-sustainability,” the Afghan Minister of Finance, Eklil Hakimi said.  

The program seeks to assist in stabilizing Afghanistan and thereby contributes to reducing poverty. 

By providing financial support, it intends to help ensure the proper functioning of the civil service and thus guarantees basic social services and supports the implementation of the Afghan government’s development priorities. 

The intention is to enable the country to generate higher revenue by improving general economic conditions and the tax system and implementing a transparent system of governance under the rule of law. The long-term goal is for Afghanistan to finance its budget independently of external subsidies and deploy budgetary funding efficiently and with a focus on development. Additionally, the ARTF offers a platform for political dialogue between the international community and the Afghan government.

According to the press release, the Afghan government will use the budget for developing and implementing projects in the areas of good governance, agriculture, rural development, infrastructure, as well as human and social development. In 2016 alone, 9.3 million AFs benefited from such projects. 

At least 3.22 billion AFs is set aside for the Citizens’ Charter Afghanistan Project that aims to reduce poverty and boost citizens’ confidence in the Afghan government by improving public services for all Afghans. 

Community Development Councils are the linchpin of the CCAP. 8.5 million Afghans shall benefit from the program’s first phase. It also includes a component that focuses on refugees and internally displaced Afghans as well as the communities that receive and host them, the statement read. An additional 1.5 million Afghans will benefit from this module.