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This remote mission provided the authorities with advice in fiscal risk management. The mission covered three interrelated topics: (i) the Public Finance and Expenditure Management (PFEM) Law and fiscal risks oversight and management; (ii) the Stated-Owned Corporations (SOC); and (iii) the Public-Private Partnerships (PPP). This report focuses especially on reforms that could be implemented during the life of the next IMF program.
Since end-2001, the Government of Afghanistan (GoA) has focused on crisis management, establishing or rebuilding fundamental institutions and basic government services, and maintaining economic stability with the help of the international community. The authorities have made significant strides in fiscal and monetary policies. The new constitution, adopted by the Loya Jirga and signed into law in January 2004, is a critical step to re-establish a unified state and strengthen the institutional framework. The authorities recognize that the domestic revenue target included in the 2004/05 operating budget is very ambitious.