The World Bank's management has approved a plan to use about $1 billion in a frozen Afghanistan trust fund for education, agriculture, health and family programmes, according to a bank paper and two sources, in what would be a major boost to efforts to ease the country's worsening humanitarian and economic crises.
The plan, outlined in the paper seen by Reuters on Friday, is to bypass sanctioned Taliban authorities by disbursing the money in the World Bank-administered Afghanistan Reconstruction Trust Fund (ARTF) through UN agencies.
It is set to be discussed by the World Bank board on March 1, the sources familiar with the plan told Reuters. Donors to the fund would then need to give approval for the release of any money.
The move would follow a successful disbursement of $280 million from the same trust fund to the World Food Program (WFP) and UN children's agency Unicef to support nutrition and health in Afghanistan over the past few months.
The World Bank paper says the plan is to "make available just over US$1 billion in ARTF resources in calendar year 2022". Recognising that the situation remains fluid, the plan aims for flexibility by making four disbursals of a total $600m and the remainder "on a priority basis" for the rest of the year.
The aim "is to protect the vulnerable, help preserve human capital and key economic and social institutions and reduce the need for future humanitarian assistance," according to the World Bank paper. It called for the fund to be used for food security, health and education programmes.
UN Secretary General Antonio Guterres last month called for the release of the remaining $1.2 billion in the fund to help Afghanistan's people survive the winter, stressing: "Time is of the essence."
The United Nations says that nearly 23 million Afghans – about 55 per cent of the impoverished country's population – are facing extreme levels of hunger, with nearly 9 million at risk of starvation.
Billions of dollars in Afghan central bank reserves, the World Bank-administered trust fund and foreign financial aid were frozen to keep it out of Taliban hands. The Islamist group seized power in August as foreign troops left after Afghanistan's most recent war, which lasted 20 years.
Graeme Smith, senior consultant for the International Crisis Group think tank, said the World Bank plan would provide urgently needed money while circumventing the Taliban, whose leaders are under US and UN sanctions.
"This helps to unstick a big chunk of money. It will get us rolling forward," he said, adding that further efforts were needed to unfreeze the central bank assets.
The World Bank's plan sets "minimum conditions for access and equity" aimed at ensuring girls are allowed in schools, female teachers can work, women are included in community councils, women-headed households receive food aid and female health workers are allowed to work.
It calls for about $150m to be distributed through Unicef for stipends to more than 200,000 teachers who have not been paid for more than six months. Another $100m would be earmarked to improve community resilience, $150m to $200m for food security, and $150m for health programmes.
The United States last week announced plans to free up half of the $7 billion in frozen Afghan central bank assets at the Federal Reserve Bank of New York to help the Afghan people. The rest was held to potentially satisfy terrorism-related lawsuits against the Taliban.
Biography
Favourite book: Zen and the Art of Motorcycle Maintenance
Holiday choice: Anything Disney-related
Proudest achievement: Receiving a presidential award for foreign services.
Family: Wife and three children.
Like motto: You always get what you ask for, the universe listens.
What the law says
Micro-retirement is not a recognised concept or employment status under Federal Decree Law No. 33 of 2021 on the Regulation of Labour Relations (as amended) (UAE Labour Law). As such, it reflects a voluntary work-life balance practice, rather than a recognised legal employment category, according to Dilini Loku, senior associate for law firm Gateley Middle East.
“Some companies may offer formal sabbatical policies or career break programmes; however, beyond such arrangements, there is no automatic right or statutory entitlement to extended breaks,” she explains.
“Any leave taken beyond statutory entitlements, such as annual leave, is typically regarded as unpaid leave in accordance with Article 33 of the UAE Labour Law. While employees may legally take unpaid leave, such requests are subject to the employer’s discretion and require approval.”
If an employee resigns to pursue micro-retirement, the employment contract is terminated, and the employer is under no legal obligation to rehire the employee in the future unless specific contractual agreements are in place (such as return-to-work arrangements), which are generally uncommon, Ms Loku adds.
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Key features of new policy
Pupils to learn coding and other vocational skills from Grade 6
Exams to test critical thinking and application of knowledge
A new National Assessment Centre, PARAKH (Performance, Assessment, Review and Analysis for Holistic Development) will form the standard for schools
Schools to implement online system to encouraging transparency and accountability
Company profile
Name: Thndr
Started: October 2020
Founders: Ahmad Hammouda and Seif Amr
Based: Cairo, Egypt
Sector: FinTech
Initial investment: pre-seed of $800,000
Funding stage: series A; $20 million
Investors: Tiger Global, Beco Capital, Prosus Ventures, Y Combinator, Global Ventures, Abdul Latif Jameel, Endure Capital, 4DX Ventures, Plus VC, Rabacap and MSA Capital
Shubh Mangal Saavdhan
Directed by: RS Prasanna
Starring: Ayushmann Khurrana, Bhumi Pednekar
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
What is dialysis?
Dialysis is a way of cleaning your blood when your kidneys fail and can no longer do the job.
It gets rid of your body's wastes, extra salt and water, and helps to control your blood pressure. The main cause of kidney failure is diabetes and hypertension.
There are two kinds of dialysis — haemodialysis and peritoneal.
In haemodialysis, blood is pumped out of your body to an artificial kidney machine that filter your blood and returns it to your body by tubes.
In peritoneal dialysis, the inside lining of your own belly acts as a natural filter. Wastes are taken out by means of a cleansing fluid which is washed in and out of your belly in cycles.
It isn’t an option for everyone but if eligible, can be done at home by the patient or caregiver. This, as opposed to home haemodialysis, is covered by insurance in the UAE.
