e-Ariana - Todays Afghan News
 Home 
 News 
 Articles 
 Cartoons 
 Feedback 
 Opinion  
 Contact Us  
 An Ariana Media Publication 09/03/2010
 IMF warns of slippage in Afghan economic program

Reuters
02/13/2007
By Lesley Wroughton

[Printer Friendly Version]

WASHINGTON - An International Monetary Fund staff mission to Afghanistan expressed concern on Monday that the government's determination to stick to targets set by an IMF economic program "might be waning" amid spending pressures from rising social and security needs.

"The political environment surrounding the program is becoming increasingly complex," the IMF mission said in a statement following a visit to Kabul between Jan. 21 to Feb. 1 to assess the country's eligibility for debt relief.

"Multiple and competing demands pose a challenge for the authorities and complicate policy decisions," the Fund said.

Despite significant support from donors, jobs were scarce and progress slow in improving the lives of ordinary Afghanis, the IMF mission said.

It also pointed to increasing budget outlays from a volatile security situation and urged the government to prioritize its spending.

Afghanistan is facing its bloodiest violence since the Taliban government was toppled by U.S.-led forces in 2001, which has raised concern for the country after optimism generated by successful elections in 2004 and 2005.

Analysts have cautioned that unemployment and poverty are the main reasons for a rise in support for a Taliban insurgency in the country's south, where violence is increasing.

During a Jan. 30 conference in Berlin, the IMF said Afghanistan's finance minister said that IMF conditions, security needs and development targets were putting "conflicting" pressures on the government.

"The mission is concerned that, in this environment, the authorities' determination to deliver on commitments under the IMF-supported program -- notable in the past -- might be waning," it added.

The IMF said the government had met all targets agreed during a mission in November, but was unable for the first time since agreeing to an IMF program to meet its revenue target. Changes in Afghanistan's customs tariff system were also "moving in the wrong direction," the Fund said.

Domestic revenue at the end of the third quarter was 4.3 percent of gross domestic product, below the program target for December 2006, the fund said.

"The uncertainty of recurrent expenditures and the dependency on donor grants underscore the importance of focusing on revenue measures," the IMF said.

The fund said fiscal policy for the remainder of 2006-07 would likely be in line with the IMF program, but security demands would put pressure on the 2007-08 budget.

It urged the authorities to develop a strategy to modernize the tax and customs administration to meet long-term revenue objectives.

Back to Top



Other Stories:


Life in Talibanistan - Part One: Throw these infidels in jail
Asia Times (09/03/2010)

The disconnect between pipelines and transparency
Globe and Mail, Canada (09/03/2010)

Of women, cosmetics & electioneering
Pajhwok (09/03/2010)

Karzai orders huge shakeup in Ministry of Interior
Pajhwok (09/03/2010)

Afghan banker warns of 'revolution'
United Press International (09/03/2010)

Karzai tells Afghans not to panic in rush for withdrawals
The Washington Post (09/03/2010)

What Led Kabul To Sack Ambassador To U.S.?
RFE/RL (09/02/2010)

Karzai's brother calls for U.S. to shore up Kabul Bank as withdrawals accelerate
The Washington Post (09/02/2010)

Interviews With Said Jawad, Afghan Ambassador To U.S
CNN, The Situation Room (09/02/2010)

Afghans Pull Money From Weakened Bank
The New York Times (09/02/2010)

Afghan finance minister: "Every penny of the deposits would be guaranteed by the government"
The Associated Press (09/02/2010)

Lessons in Crony Capitalism
The Huffington Post (09/02/2010)

Too Corrupt to Fail?
The New Yorker (09/02/2010)

A.Q. Khan
Newsweek (09/02/2010)

'It's premature to begin pulling troops' from Afghanistan, says Greg Mortenson
Pioneer Press (09/02/2010)

Lonq queues at Afghan bank amid corruption claims
AFP (09/02/2010)

14 Candidates Removed from Parliamentary Elections List
Tolo News (09/02/2010)

Few signs of run on Afghanistan's Kabul Bank
The Associated Press (09/02/2010)

Nervous Afghans pull money from Kabul Bank, raising fears
The Washington Post (09/02/2010)

Afghan ambassador to US to leave post, slams smears
AFP (09/01/2010)

Afghanistan takes over biggest private bank to avert collapse
AFP (09/01/2010)

Karzai in panic as graft probe closes in
Global Post (09/01/2010)

Where Did The Money Go?
Yahoo News (09/01/2010)

Afghanistan's biggest bank in near disastrous collapse
World News (09/01/2010)

After Obama's Iraq Speech, Afghans Worry About U.S. Commitment
TIME (09/01/2010)

Afghan Police's Lack of Guns and Gas Shows U.S. Exit Plan Flaw
Bloomberg (09/01/2010)

"Afghan concern about Pak is legitimate" - Gen. Petraeus
The Associated Press (09/01/2010)

Birthplace of the Taliban: the next battleground
The Associated Press (09/01/2010)

Afghan Ambassador Said T. Jawad leaving his post in Washington
The Washington Post (09/01/2010)

Afghanistan bomb attacks kill twenty-one US soldiers in 48 hours
The Telegraph (09/01/2010)


Back to Top