Islamic Republic of Afghanistan


Book Description

This paper discusses the main features of the Staff-Monitored Program (SMP) for Afghanistan. The SMP is designed to support the authorities’ reform agenda with a framework to address economic vulnerabilities and facilitate engagement with the international community to sustain donor support. The SMP will foster continued close engagement with Afghanistan, address immediate fiscal and banking vulnerabilities, and help manage risks. The SMP will also preserve buffers, maintain low inflation and competitiveness, and lay the basis for high and inclusive growth. Under the SMP, fiscal policy will focus on mobilizing domestic budget revenue to finance projected expenditure and rebuild the treasury’s cash balance.







The Islamic Republic of Afghanistan


Book Description

This paper discusses Afghanistan’s Request for a Three-Year Arrangement Under the Extended Credit Facility (ECF). The program sets out a structural reform agenda that focuses on institution building, fiscal and financial reforms, and measures to combat corruption to lay the foundations for scaled up private sector development. The envisaged reforms dovetail with Afghanistan’s National Development Framework currently being finalized. The program aims to preserve macro-financial stability by implementing prudent fiscal, monetary, and financial policies, and by maintaining external buffers and a flexible exchange rate regime. The IMF staff supports the authorities’ request for an ECF arrangement under an IMF-supported program.




Islamic Republic of Afghanistan


Book Description

This Technical Assistance paper assesses Islamic Republic of Afghanistan government’s finance statistics (GFS). The mission updated the AFMIS bridge tables to enable producing Budgetary Central Government data according to the GFSM 2014 classifications including the economic (object) and functional classifications, reviewed government debt compilation, assisted developing bridge tables for extrabudgetary units, and provided hands-on training for GFS compilers in compiling the data for the general government. Despite good outcomes, the capacity for GFS compilation remains slim and securing support of the management remains critical for both maintaining the current achievements and further improving the government financial data consistent with the GFSM 2014 methodology. Afghanistan has made good steps toward further improving GFS and starting to provide supplementary accrual information, while there have been issues with the quality of the source data. The mission suggests that a GFS Technical Working Group should be set up to coordinate the GFS reforms, address the issues in applying the GFSM 2014 methodology, and advise the Ministry of Finance management on important matters requiring attention.




The Islamic State in Khorasan


Book Description

So-called Islamic State began to appear in what it calls Khorasan (Afghanistan, Pakistan, Central Asia, Iran and India) in 2014. Reports of its presence were at first dismissed as propaganda, but during 2015 it became clear that IS had a serious presence in Afghanistan and Pakistan at least. This book, by one of the leading experts on Islamist insurgency in the region, explores the nature of IS in Khorasan, its aim and strategies, and its evolution in an environment already populated by many jihadist organisations. Based on first-hand research and numerous interviews with members of IS in Khorasan, as well as with other participants and observers, the book addresses highly contentious issues such as funding, IS's relationship with the region's authorities, and its interactions with other insurgent groups. Giustozzi argues that the central leadership of IS invested significant financial resources in establishing its own branch in Khorasan, and as such it is more than a local movement which adopted the IS brand for its own aims. Though the central leadership has been struggling in implementing its project, it is now turning towards a more realistic approach. This is the first book on a new frontier in Islamic State's international jihad.




Islamic Republic of Afghanistan


Book Description

Afghanistan has made important achievements in recent years. The 2011 Article IV Consultation highlights that authorities have taken steps to lay the foundation for economic stability and growth, despite a very difficult security situation and the challenges associated with building political and economic institutions. Directors agreed that the Extended Credit Facility (ECF)-supported program, accompanied by a technical assistance agenda, provides an appropriate framework for addressing the considerable challenges lying ahead and a basis for continued engagement with the donor community.