Islamic Republic of Afghanistan: First Review Under the Under the Extended Credit Facility Arrangement and Request for Modification of Performance Criteria-Press Release; Staff Report; and Statement by the Executive Director for Islamic Republic of Afghanistan

Afghanistan is confronting the Covid-19 pandemic and its socioeconomic fallout amid rising insecurity. Supported by donors, authorities boosted health social spending to cushion pandemic’s impact on vulnerable. Policy measures kept output contraction 2 percent in 2020, but poverty rose fiscal deficit widened. Political uncertainty has risen as peace talks between government Taliban stalled U.S., NATO, allies announced withdrawal of their troops September. In a strong sign support for Afghanistan’s development reforms, donors pledged some US$12 billion civilian grants over 2021–24 at Geneva conference November 2020.