## Japan-IMF Partnership on Capacity Development — Appendix 1 (jsa2025) ## Source details **Canonical URL:** [Japan-IMF Partnership on Capacity Development — Appendix 1 (jsa2025)](https://www.imf.org/-/media/files/capacity-developement/jsa-annual-reports/jsa2025.pdf) ## Other formats - [Markdown version](/-/media/files/capacity-developement/jsa-annual-reports/jsa2025.pdf.md) - [Structured JSON version](/-/media/files/capacity-developement/jsa-annual-reports/jsa2025.pdf.json) --- ### External partner contributions and funding composition - Figure: External partner contributions for capacity development, FY2017–2025 (Source: Capacity Development Information Management System (CDIMS); excludes in-kind contributions; funds received during FY2017–25, not adjusted for Regional Training Centers cost recovered directly). - Share of external partner contributions: - Japan 27% - European Commission 14% - Canada 7% - United Kingdom 6% - Switzerland 5% - Others 41% ### Japan’s aggregate contributions and activity breakdown (FY1990–2025) - TABLE 1. CONTRIBUTIONS BY JAPAN, FY1990–2025 (In millions of U.S. dollars) — key line items (as presented) - Japan’s Contributions (total FY1990 – 2025): 1 5 87. 333.7 30.4 33.7 44.359.417. 521.543.0870.8 - of which Capacity Development 2 473.82 7.9 25.5 28.6 38.353.812 . 816.538.8716.0 - of which, COVID-19 Initiative Window: 0.00.00.00.010.00.00.00.00.010.0 - Digital Money Window: 0.00.00.00.00.015.00.00.32.017. 3 - Regional Office for Asia and the Pacific: 32.52 .1 2.0 2 .1 2.22 .11.81.71.347.9 - Scholarships: 81.03.7 2.9 3.0 3.83.52.93.22.9106.9 - The Japan-IMF Scholarship Program for Asia: 53.7 2.8 2.4 2.4 3.02.82.22.62.474. 3 - Japan-IMF Scholarship Program for Advanced Studies: 27. 30.80.5 0.6 0.80.70.70.70.532.6 - Notes from Institute for Capacity Development, IMF: - Until FY10, contributions to the JSA and the Japan-IMF Scholarship Program for Advanced Studies were administered under the Japan Administered Account for Selected IMF Activities (JAA) and the Framework Administered Account for Selected IMF Activities (FAA), respectively. New contributions are now administered under the JSA under SFA. The JAA and the FAA accounts are closed, with the remaining funds transferred under the JSA under SFA. - Includes $154,603 transferred to finance the operations of the Office of the Executive Director for Japan in FY11, $324,344 transferred to SPR and OBP to cover expenses in support to Japan’s G20 Presidency in FY19–20, $187,179 transferred to SPR and OBP to cover for expenses in support to Japan’s G7 Presidency in FY23 and $125,441 transferred to SPR and OBP to cover for expenses in support to Japan’s G7 Presidency in FY24. ### Japan’s participation in multi-partner vehicles (FY2025) - TABLE 2. JAPAN’S PARTICIPATION IN IMF CD MULTI-PARTNER VEHICLES (In millions of U.S. dollars) - FY2025 Contributions to Multi-Partner Vehicles: 6.7 - Anti-Money Laundering and Combating the Financing of Terrorism Subaccount (AML/CFT) - Phase III: 0.6 - Pacific Financial Technical Assistance Center (PFTAC): 3.6 - Externally Financed Appointee Subaccount (EFA): 1.0 - Global Public Finance Partnership (GPFP): 1.5 ### Annual contributions by activity (FY1990–2025) - Figure 3: Japan annual contributions to capacity development by activity, FY1990–2025 (Source: Institute for Capacity Development, IMF). - Includes $154,603 transferred to finance the operations of the Office of the Executive Director for Japan in FY11, $324,344 transferred to SPR and OBP to cover expenses in support to Japan’s G20 Presidency in FY19-20, $187,179 transferred to SPR and OBP to cover for expenses in support to Japan’s G7 Presidency in FY23 and $125,441 transferred to SPR and OBP to cover for expenses in support to Japan’s G7 Presidency in FY24. ### Case study — Sri Lanka: Implementing economic reform agendas (FAD_LKA_2023_01, FAD_APD_2022_02, LEG_IMF_2024_07, ICD_IMF_2022_03) - Overall support and financing: - In FY2025, Japan contributed over $2m (78% of external financing) for CD delivery in Sri Lanka. - CD efforts were closely aligned with the IMF’s Extended Fund Facility (EFF) arrangement for Sri Lanka. - Public Financial Management (PFM) reforms and milestones: - New PFM Act enacted in August 2024. - PFM Act mandates a rolling five-year medium-term fiscal framework (MTFF) and an annual Fiscal Strategy Statement (FSS). - Binding primary-expenditure ceiling of 13 percent of GDP governs the budget cycle; any breach requires parliamentary approval and a published recovery plan. - Government guarantees capped at 7.5 percent of average GDP and subject to strict reporting. - Law enforces internationally aligned accounting standards, a unified chart of accounts, quarterly and mid-year fiscal reports, and clear disclosure timelines. - Law assigns responsibilities to the finance minister, treasury secretary, and cabinet and empowers the Parliamentary Budget Office. - Cabinet approved the country’s first FSS incorporating the 2025-29 MTFF and updated macro-fiscal projections through 2029. - FAD and World Bank CD mission in January 2025 developed roadmap for Fiscal Risks Statement (FRS); FAD provided STX assistance for FRS drafting. - PFM Act enactment was a structural benchmark (SB) under the EFF; the FSS and FRS are reform commitments under the EFF program. - Revenue administration reforms: - Sri Lanka achieved a five percent growth in FY2025, supported by intensive CD aligned with the EFF program. - IRD initiatives: - High-Wealth Individual Compliance Program established. - Tax Crimes Program implemented; HMRC expressed interest in continuing program. - Repeal of Simplified Value Added Tax (VAT) planned; transition to a traditional VAT refund model expected on October 1, 2025. - CD support via SARTTAC and the JSA Customs program, including long-term in-country advisor support and STX. - Public Debt Management Office (PDMO): - EFF program included two SBs: establish PDMO by end-2024 and full operationalization by end-2025. - Public Debt Management Act enacted on June 18, 2024. - New Director General of the PDMO appointed in November 2024. - PDMO officially established in December 2024, meeting the first EFF SB. - First MTDS published by the PDMO; dedicated website launched. - Public Debt Regulations and Guidelines in final stages of approval. - Additional TA in 2025: Domestic Debt Management mission (January 2025); Investor Relations Strategy and Communication Policy mission (March 2025); virtual support (February 2025) for MTDS drafting. - Ongoing TA focuses on operationalization of the PDMO and gradual transfer of debt management functions to meet the second EFF SB. - Governance and anti-corruption: - Sri Lanka Governance Diagnostic (GD) Report (September 2023) informed LEG TA and conditionality. - LEG missions: two-week mission in October 2024 to support launching CIABOC and asset declaration system; second in-country mission in January 2025 with STX for asset declaration implementation and form refinement. - LEG coordination with ADB, WB, JICA, and UNDP on CIABOC strategic plan and asset declaration rollout. - Macroeconomic frameworks (Ministry of Finance): - MoF requested TA to strengthen macroeconomic forecasting and policy analysis aligned with 2023 EFF objectives. - TA restructured in 2024 to customize the Macroeconomic Framework Tool (MFT) and build institutional capacity. - Timeline and missions: October 2024 hands-on training; virtual missions in November 2024, February 2025, and May 2025. - By May 2025, core team produced full-scale baseline projection and developed alternative policy and risk scenarios. - Outputs: MFT calibrated to Sri Lanka’s economic structure; user manual and training materials under development; establishment of forecasting calendar and core team. - Project funded by the JSA; MoF presented baseline projections and alternative scenarios in high-level meeting in Colombo in May 2025. ### Box 2 — Vietnam pension modeling and GDT tax statistics training - Country Specific Pension Model for Vietnam (FAD_VNM_2023_01, FAD_APD_2023_02) - Objective: develop country specific pension micro-simulation model and equip VSS experts for micro-simulation-based projections, sensitivity and scenario analysis. - Activities: remote bi-weekly meetings and in-person visits (October 2024); training on model use for policy analysis. - Outcomes: - VSS staff can support pension decision-making with micro-simulation projections and conduct sensitivity and scenario analysis. - Expected to facilitate informed policy decisions addressing ageing population pressures. - Policy implications: pension spending affects welfare, labor markets, tax compliance, and macro-fiscal landscapes; recommended integration of modeling tool into routine policy processes and continued training after public administration reshuffle. - IMF alignment: initiative aligns with IMF surveillance and lending frameworks emphasizing sound fiscal policies. - Training for Vietnam General Department of Taxation (GDT): Tax Statistics Analysis Workshop (February 2025) - Context: GDT collects electronic tax data but lacked integrated databases and models; governance practices restricted information flow. - Workshop: four-day workshop in February 2025 advising Tax Declaration and Accounting Department and others on establishing tax statistics analysis unit. - Tools presented: revenue forecasting models; corporate and personal income tax microsimulation models; VAT GAP model based on supply-and-use tables; indirect tax distribution models based on household consumption data. - Institutional progress: consolidation into new Tax Budget, Accounting and Statistics Department as part of wider reorganization. - Future CD: GDT expressed interest in further FAD Tax Policy CD on microsimulation modeling and distributional analysis. ### Box 7 — ICD Online Learning and blended innovations - IMF Financial Operations Online Course (launched July 2024) - Target audience: policymakers, government officials, general public. - FY2025 reach and outcomes: - Nearly 1,000 participants from over 140 countries. - Almost 800 completing the course. - Learner feedback rating: 4.6 out of 5. - Government officials’ average learning gain: 22 percentage points. - 84% of participants scored above 60% on the post-course test. - Overall course pass rate: 80%. - Visibility: featured in Peek-into-Training session at 2024 Annual Meetings (1,271 online views and 186 in-person attendees). - Macroeconomic Policy Communication blended course (January 2025) - Delivery: ten days online self-paced + one week interactive in-person. - Participation: 30 participants from 14 countries. - Pedagogy: simulation exercises, case studies, integration of Generative AI tools. - Outcomes: built participant skills and professional network. - Blended Climate in Macroframeworks (CMF) Course (pilot January–February 2025) - Structure: asynchronous online component + synchronous in-person component; AI tutor KIRON pilot supported DDT material. - Outcomes and metrics: - Average learner rating: 4.7 out of 5. - Average learning gain: 21 percentage points. - 73% of participants scored above 60% on the post-course test. - Cross-cutting innovations: - Since 2021, over 20 blended courses delivered by IMF. - Use of SCORM e-learning format and deployment of AI tutor KIRON. ### Box 12 — New Macroeconomic Policy Communications Course at STI (January 20–24, 2025) - Course design and objective: - Blended course to help officials handle real-life communication challenges; tailored to policymakers from low-income countries and fragile states. - Financial support from the Government of Japan. - Participation and format: - 30 participants from 14 countries; majority from central banks. - In-person week in Singapore: January 20–24, 2025. - Emphasis on practical simulation exercises; daily pulse surveys used. - Use of generative AI: - AI-supported question-generator pilot tool; participants used AI to summarize texts and refine drafts; instructors used AI for readability and consistency checks. - Reception: course very well received; sample participant comment praising relevance and practical application. ### Box 19 — Strengthening PFM in Selected Southeast Asian Countries (FAD_APD_2023_03) - Cambodia — MTFF, fiscal reporting, accrual transition: - IMF CDOT supported first MTFF in 2019; in FY2025 Cambodia published its first MTFF (2025–2027) with a section on fiscal rules and fiscal risks. - February 2025 mission assisted GDNT transition to accrual accounting by 2030; pilot accruals in 2024 financial statements decided. - Lao P.D.R. — Chart of Accounts (CoA) modernization: - Two missions in July 2024 and January 2025; MoF approved new CoA December 2024 for implementation in 2026 budget cycle. - Expected outcomes: enhanced fiscal transparency and digitalization enablers linked to TSA reforms. - Vietnam — Treasury management, cash management, and repo operations: - July 2024 TA assisted VST to assess progress toward full digitalization by 2030 and recalibrate priorities. - Achievements: consolidation of cash resources, improved cashflow forecasting, introduction of (reserve) repo for short-term cash surplus investment. - Cross-cutting recommendations: - Integrate MTFF into budget process. - Strengthen fiscal risk analysis and disclosure. - Transition to accrual accounting with piloting ahead of full implementation. - Use modern integrated CoA to improve transparency, resource allocation, digitalization of fiscal reporting, TSA reforms, and treasury system upgrades. - For treasury modernization: sustain progress toward full digitalization by 2030; consolidate cash to enable active cash and short-term investment management including repo; strengthen cashflow forecasting. ### OAP visibility, outreach, and JISPA metrics (Box 21 and related) - OAP strategic role and activities: - OAP established in Tokyo in 1997 as IMF’s regional presence hub for Asia and the Pacific. - Core functions: facilitate policy dialogue and CD; contribute to regional cooperation and surveillance; communicate Fund messages to Japanese and regional audiences; coordinate relations with regional forums. - Major events and outreach in FY2025: - High-level conference in Tokyo in March titled “Asia and the IMF: Resilience through Cooperation” with more than 600 participants (including online viewers). - Open Media House launched in September to train journalists on IMF macroeconomic data. - Active posting on Facebook, X, and OAP website in Japanese and English; recruitment outreach with social media campaign on X. - JISPA administration and outcomes: - About 65 junior officials pursue graduate studies in Japan each year (JISPA). - 915 alumni since 1993. - For 2025 academic year (October 1, 2024 to September 30, 2025): 38 new scholarships awarded and 66 scholars supported in total, including one PhD candidate. - Alumni distribution (FY1993–2025): - 504 (55%) Central Bank - 200 (22%) Ministry of Finance/Tax Authority - 114 (12%) Economic Affairs Ministry and Agency - 41 (4%) Statistics Bureau - 24 (3%) Trade/Commerce Ministry - 7 (1%) Cabinet Office - 25 (3%) Others - Program lifetime totals: 1005 scholarships awarded; 915 scholars graduated. - Box 22 — CBDC and digital money peer-to-peer events: - High-level workshop in Tokyo with over 40 senior officials from 17 Asia-Pacific countries; participant rating: 4.9/5. - LEG roundtable on legal readiness for CBDC in Asia: March 18–19, 2025 (roundtable date: 19 March 2025), 26 senior CBDC experts from 14 central banks; participant rating: 4.8/5. ### FY2025 Program portfolio (selected programs and budgets) - Examples of FY2025 selected programs and budgets (millions of U.S. dollars): - APD/FAD/FAD JSA Domestic Revenue Mobilization (Tax Policy) in PIC — 2.0 - APD/FAD/FAD JSA Customs Reform and Modernization Program for Selected Countries in APD — 2.8 - APD/FAD 14th IMF-Japan High-Level Tax Conference for Asian Countries — 0.3 - Global LEG Improving Legal Frameworks in Public Debt Management — 2.0 - APD/AFR LEG Strengthening Rule of Law and Reducing Corruption — 3.2 - APDS TA Improving External Sector Statistics in the Asia-Pacific Region — 3.4 - AFR STA Strengthening the Quality of Public Debt Statistics in Africa — 1.4 - Note: List includes programs under the regular JSA, COVID-19 and Digital Money windows. ### FY2024 and FY2023 selected program budgets (highlights) - FY2024 selected programs (millions of U.S. dollars): - APD/FAD/FAD JSA Strengthening PFM in Selected Southeast Asian Countries FY24-26 — 4.9 - Global ICD The Japan-IMF Flagship Partnership on Online Learning — 7.7 - APD/MCM Strengthening Macroprudential Policy Implementation in Mongolia — 2.1 - APD/MCM Strengthening Debt Management in Sri Lanka, Maldives and Lao PDR- LTX Based in SARTTAC — 2.0 - FY2023 selected programs (millions of U.S. dollars): - AFR FAD Strengthening Fiscal Sustainability in Fragile States — 8.0 - APD FAD Revenue Mobilization Support (Tax Administration) for Selected Asian Countries — 5.7 - Global FAD Infrastructure Governance Facility II — 9.9 - Global MCM JSA CBDC CD Work — 5.0 - Global MCM JSA CBDC Analytics and Development — 5.4 ### Financial snapshot — Administered Accounts: Japan Financial Statement (FY2025, in thousands of U.S. dollars) - Balance Sheet as of April 30, 2025, 2024 and 2023 - Assets — Cash and cash equivalents: 74,047 75,810 96,961 - Total assets: 74,047 75,810 96,961 - Resources — Total resources: 74,047 75,810 96,961 - Income Statements and Changes in Resources for the Years Ended April 30, 2025, 2024 and 2023 - Balance, beginning of the year: 75,810 96,961 116,525 - Income earned on investments: 3,498 4,859 3,485 - Contributions received: 42,974 21,334 17,315 - Contributions transferred (net): (6,700) (3,600) (3,100) - Operating expenses: (41,535) (43,745) (37,264) - Net changes in resources: (1,763) (21,151) (19,564) - Balance, end of the year: 74,047 75,810 96,961 - Note: The IMF arranges for an annual audit of the JSA to be undertaken by its external auditors, in connection with their annual audit of the IMF’s own accounts, and for a separate certificate of completion to be provided to the Japanese authorities. - Footnote: 1 Net of accruals. The financial statement of the Administered Accounts in the IMF annual report, which includes this Subaccount, reports year end accruals separately. ### ANNEX I — Portfolio detailed (selected program financials and outcomes) - Selected program financials (millions of U.S. dollars) — examples: - FAD Domestic Revenue Mobilization (Tax Policy) in Pacific Island Countries (JPN143; FAD_APD_2024_01): Overall Program Budget: 2.0; Approved Budget through FY2025 1/: 0.7; Expenses through FY2025: 0.5 - FAD Customs Reform and Modernization Program in APD (JPN144; FAD_APD_2024_02): Overall Program Budget: 2.8; Approved Budget through FY2025 1/: 0.8; Expenses through FY2025: 0.3 - ICD Supporting Development of Macroeconomic Frameworks in Central Africa (JPN213; ICD_AFR_2025_01): Overall Program Budget: 1.5; Approved Budget through FY2025 1/: 0.5; Expenses through FY2025: 0.1 - Joint APD-ICD Building Macroeconomic Capacity for Cambodia, Lao P.D.R and Vietnam: ICD component Overall Program Budget: 2.7; Approved Budget through FY2025 1/: 1.1; Expenses through FY2025: 1.0. APD component Overall Program Budget: 2.2; Approved Budget through FY2025 1/: 0.7; Expenses through FY2025: 0.5 - LEG Improving Legal Frameworks in Public Debt Management (JPN305; LEG_AFR_2024_03): Overall Program Budget: 2.0; Approved Budget through FY2025 1/: 0.5; Expenses through FY2025: 0.2 - LEG Strengthening Rule of Law and Reducing Corruption (JPN304; LEG_IMF_2024_07): Overall Program Budget: 3.2; Approved Budget through FY2025 1/: 1.3; Expenses through FY2025: 1.6 - MCM Debt management CD to FCS and LICs (JPN427; MCM_IMF_2024_05): Overall Program Budget: 0.6; Approved Budget through FY2025 1/: 0.3; Expenses through FY2025: 0.3 - STA Improving External Sector Statistics in the Asia-Pacific Region (JPN518; STA_APD_2024_01): Overall Program Budget: 3.4; Approved Budget through FY2025 1/: 1.1; Expenses through FY2025: 0.9 - STA Strengthening the Quality of Public Debt Statistics in Africa (JPN517; STA_AFR_2024_01): Overall Program Budget: 1.4; Approved Budget through FY2025 1/: 0.6; Expenses through FY2025: 0.3 - Key program findings and outcomes (selected): - FAD Domestic Revenue Mobilization in PIC: Fiji TE inventory and costing; Kiribati VAT amendment drafting; Marshall Islands VAT transition analysis with legislation planned by October 2026; Palau reform assessment and modernization options identified. - FAD Customs Reform in APD: regional workshops and bilateral engagements in Cambodia, Maldives, Vietnam, and Maldives progress in cargo management digital applications. - ICD Central Africa macro frameworks: needs assessments in Equatorial Guinea, Republic of Congo, Gabon, Cameroon; ongoing Chad support; regional FPP course in Ghana. - Joint APD-ICD CLV program: Cambodia produced first MTFF; Lao PDR approved new CoA December 2024; Vietnam customized macro framework tool and core group presented findings. - LEG public debt management and anti-corruption programs: legal reviews, TA missions, Governance Diagnostics across Sri Lanka, Burundi, Burkina Faso, Pakistan, Sierra Leone, Zambia, Benin; regional training and course offerings. - Debt management CD to FCS and LICs: master analytical template for 76 eligible countries; initial findings: 47 countries had some data; 3 excluded; 44 remaining with 21 requiring additional due diligence; Somalia published 2024 annual debt management report and drafted MTDS for late 2025 publication. - STA external sector statistics (Asia-Pacific): prioritized Cambodia, Lao PDR, Vietnam, Papua New Guinea; Kiribati compiled quarterly BOP and IIP for 2023; blended specialized courses delivered. - STA PSDS in Africa: PSDS quality assessments completed for Malawi, Tanzania, Zambia, Zimbabwe with country-specific recommendations. ### Cross-cutting implementation features and programmatic priorities - Programmatic, sequenced CD delivery to ensure continuity and sustainability (examples: Somalia debt management; macro frameworks advisor in Central Africa). - Blended learning and tailored regional workshops complement in-country TA; measured learning gains and high satisfaction scores reported (examples: monetary policy course learning gain 34 percentage points; Macroeconomic Diagnostics 28.2 percentage points; STI average learning gains 25 percentage points). - Emphasis on legal and institutional reform design, operationalization, and publication of outputs to enhance transparency (examples: Sri Lanka PFM Law and FSS; Somalia publications; PSDS diagnostic reports). - Coordination with regional and development partners (PFTAC, OCO Secretariat, World Bank, Commonwealth Secretariat, UNCTAD, ADB, ATI, AFRITACs). _Annual Report — Japan-IMF Partnership on Capacity Development — Appendix 1 summary_ ### Appendix 1 presents a summary of all JSA ### Appendix 1 presents a summary of all JSA programs ### External partner contributions and composition of funding - Figure: External partner contributions for capacity development, FY2017–2025 (Source: Capacity Development Information Management System (CDIMS); excludes in-kind contributions; funds received during FY2017–25, not adjusted for Regional Training Centers cost recovered directly). - Share of external partner contributions: - Japan 27% - European Commission 14% - Canada 7% - United Kingdom 6% - Switzerland 5% - Others 41% ### Japan’s contributions (aggregate figures and activity breakdown) - TABLE 1. CONTRIBUTIONS BY JAPAN, FY1990–2025 (In millions of U.S. dollars) - F Y1990 – 2017F Y2018F Y2019FY2020FY2021FY2022FY2023FY2024FY2025 - Tot al F Y1990 – 2025 - Japan’s Contributions - 1 5 87. 333.7 30.4 33.7 44.359.417. 521.543.0870.8 - of which Capacity Development 2 473.82 7.9 25.5 28.6 38.353.812 . 816.538.8716.0 - of which, COVID-19 Initiative Window 0.00.00.00.010.00.00.00.00.010.0 - Digital Money Window 0.00.00.00.00.015.00.00.32.017. 3 - Regional Office for Asia and the Pacific 32.52 .1 2.0 2 .1 2.22 .11.81.71.347.9 - Scholarships 81.03.7 2.9 3.0 3.83.52.93.22.9106.9 - The Japan-IMF Scholarship Program for Asia 53.7 2.8 2.4 2.4 3.02.82.22.62.474. 3 - Japan-IMF Scholarship Program for Advanced Studies 27. 30.80.5 0.6 0.80.70.70.70.532.6 - Notes from Institute for Capacity Development, IMF: - Until FY10, contributions to the JSA and the Japan-IMF Scholarship Program for Advanced Studies were administered under the Japan Administered Account for Selected IMF Activities (JAA) and the Framework Administered Account for Selected IMF Activities (FAA), respectively. New contributions are now administered under the JSA under SFA. The JAA and the FAA accounts are closed, with the remaining funds transferred under the JSA under SFA. - Includes $154,603 transferred to finance the operations of the Office of the Executive Director for Japan in FY11, $324,344 transferred to SPR and OBP to cover expenses in support to Japan’s G20 Presidency in FY19–20, $187,179 transferred to SPR and OBP to cover for expenses in support to Japan’s G7 Presidency in FY23 and $125,441 transferred to SPR and OBP to cover for expenses in support to Japan’s G7 Presidency in FY24. ### Japan’s participation in multi-partner vehicles (FY2025) - TABLE 2. JAPAN’S PARTICIPATION IN IMF CD MULTI-PARTNER VEHICLES (In millions of U.S. dollars) - FY2025 Contributions to Multi-Partner Vehicles6.7 - Anti-Money Laundering and Combating the Financing of Terrorism Subaccount (AML/CFT) - Phase III0.6 - Pacific Financial Technical Assistance Center (PFTAC)3.6 - Externally Financed Appointee Subaccount (EFA) 1.0 - Global Public Finance Partnership (GPFP) 1.5 ### Annual contributions by activity (FY1990–2025) - Figure 3: Japan annual contributions to capacity development by activity, FY1990–2025 (Source: Institute for Capacity Development, IMF). - Includes $154,603 transferred to finance the operations of the Office of the Executive Director for Japan in FY11, $324,344 transferred to SPR and OBP to cover expenses in support to Japan’s G20 Presidency in FY19-20, $187,179 transferred to SPR and OBP to cover for expenses in support to Japan’s G7 Presidency in FY23 and $125,441 transferred to SPR and OBP to cover for expenses in support to Japan’s G7 Presidency in FY24. ### Case study — Sri Lanka: Implementing economic reform agendas (FAD_LKA_2023_01, FAD_APD_2022_02, LEG_IMF_2024_07, ICD_IMF_2022_03) - Overall support and financing: - In FY2025, Japan contributed over $2m (78% of external financing) for CD delivery in Sri Lanka. - CD efforts were closely aligned with the IMF’s Extended Fund Facility (EFF) arrangement for Sri Lanka. - Public Financial Management (PFM) reforms: - The new PFM Act was enacted in August 2024. - The PFM Act mandates a rolling five-year medium-term fiscal framework (MTFF) and an annual Fiscal Strategy Statement (FSS). - A binding primary-expenditure ceiling of 13 percent of GDP now governs the budget cycle; any breach requires parliamentary approval and a published recovery plan. - Government guarantees are capped at 7.5 percent of average GDP and subject to strict reporting. - The law enforces internationally aligned accounting standards, a unified chart of accounts, quarterly and mid-year fiscal reports, and clear disclosure timelines. - The law assigns explicit responsibilities to the finance minister, treasury secretary, and cabinet and empowers the Parliamentary Budget Office. - Cabinet approved the country’s first FSS, which incorporated the 2025-29 MTFF and updated macro-fiscal projections through 2029. - FAD, in collaboration with the World Bank, conducted a CD mission in January 2025 to develop a roadmap for the Fiscal Risks Statement (FRS) and introduce analytical tools; FAD continued support including short-term expert (STX) assistance for FRS drafting. - The PFM Act enactment was a structural benchmark (SB) under the EFF; the FSS and FRS are reform commitments under the EFF program. - Revenue administration reforms: - Sri Lanka achieved a five percent growth in FY2025, supported by intensive CD aligned with the EFF program. - Key Inland Revenue Department (IRD) initiatives: - High-Wealth Individual Compliance Program established to enhance compliance among high-wealth individuals. - Tax Crimes Program implemented to combat tax evasion and fraud; HMRC has expressed interest in continuing the program. - Repeal of Simplified Value Added Tax (VAT) planned, with transition to a traditional VAT refund model; implementation expected on October 1, 2025. - CD support channeled through South Asia Regional Training and Technical Assistance Center (SARTTAC) and the JSA Customs program, including long-term in-country advisor support and STX. - Public Debt Management Office (PDMO) establishment and operationalization: - EFF program included two SBs: establish PDMO by end-2024 and full operationalization by end-2025. - TA supported drafting the Public Debt Management Act and Regulations, institutional structure, job descriptions, and MTDS formulation. - Participation in regional MTDS workshop in New Delhi in September 2024. - Public Debt Management Act enacted on June 18, 2024. - New Director General of the PDMO appointed in November 2024. - PDMO officially established in December 2024, meeting the first EFF SB. - First MTDS published by the PDMO and a dedicated website launched to improve transparency and investor outreach. - Public Debt Regulations and Guidelines on Public Debt Management are in final stages of approval. - Additional TA delivered in 2025: Domestic Debt Management mission in January 2025 to support transfer of functions from the Central Bank, March 2025 mission on Investor Relations Strategy and Communication Policy, and virtual support in February 2025 to assist in drafting Sri Lanka’s first MTDS. - Ongoing TA focuses on operationalization of the PDMO and gradual transfer of debt management functions to meet the second EFF SB. - Governance and anti-corruption reforms: - Following the Sri Lanka Governance Diagnostic (GD) Report (September 2023), LEG provided targeted TA to implement GD recommendations; recommendations fully integrated into the IMF-supported program and form core governance- and corruption-related conditionality for Sri Lanka. - LEG coordinated a two-week mission to Colombo in October 2024 to support launching the Commission to Investigate Allegations of Bribery and Corruption (CIABOC) and implement an asset declaration system for senior public officials. - A second in-country LEG mission occurred in January 2025; STX provided hands-on support implementing the asset declaration system and refining the asset declaration form to align with regional and international good practices. - LEG collaborated with development partners including ADB, WB, JICA, and UNDP to support CIABOC strategic plan implementation and asset declaration system rollout. - Macroeconomic frameworks technical assistance (Ministry of Finance): - MoF requested TA to strengthen macroeconomic forecasting and policy analysis capacity in line with the 2023 EFF objectives. - TA restructured in 2024 to focus exclusively on MoF needs, centering on customizing the Macroeconomic Framework Tool (MFT) and building institutional capacity for medium-term forecasting and scenario analysis. - Timeline and activities: - Hands-on training mission in October 2024 introducing Financial Programming and Policies (FPP) concepts and the MFT. - Virtual missions in November 2024, February 2025, and May 2025 focused on customizing the MFT, refining behavioral equations, and clarifying forecasting team roles. - By May 2025, the core team produced a full-scale baseline projection and developed alternative policy and risk scenarios. - Outputs and sustainability measures: - MFT calibrated to reflect Sri Lanka’s economic structure, including fiscal-monetary interactions and external vulnerabilities. - A user manual and training materials are under development to support institutionalization. - Establishment of a forecasting calendar and core team; emphasis on documentation, scenario analysis, and integration into institutional workflows. - The project supports IMF surveillance and program engagement by improving the quality of macroeconomic projections used in Article IV consultations and EFF reviews. - The project is funded by the JSA and acknowledged by mission team and authorities; MoF presented baseline projections and alternative scenarios in a high-level meeting in Colombo in May 2025. _ Japan-IMF Partnership on Capacity Development Annual Report — Appendix 1 summary_ ### Box 2. Country Specific Pension Model for Vietnam and Training (FAD_VNM_2023_01, FAD_APD_2023_02) ### Box 2. Country Specific Pension Model for Vietnam and Training (FAD_VNM_2023_01, FAD_APD_2023_02) ### Objective - Develop a country specific pension micro-simulation model for Vietnam to support policy making. - Equip Vietnam Social Security (VSS) experts with the skills to use the model for micro simulation-based projections, sensitivity and scenario analysis. ### Activities and training - FAD conducted a program combining remote activities (bi-weekly meetings) and in-person visits (October 2024). - Training provided to VSS covered the use of the country specific pension micro-simulation model. - Emphasis on enabling the VSS team to assist in policy making through model-based projections, sensitivity analyses, and scenario analysis. ### Outcomes and capacity built - VSS staff are now able to: - Support pension-related decision-making processes with data-driven insights using micro-simulation-based projections. - Conduct sensitivity and scenario analysis to assess long-term implications for the public pension system. - The implementation of the pension modeling tool is expected to: - Facilitate more informed policy decisions addressing challenges posed by an aging population in Vietnam. - Promote prudent decision making and ensure long-term viability of the social security system when integrated into regular decision-making processes. - The CD engagement has been highly valued by the authorities, reflecting strong commitment to improving the social security system. ### Policy implications and institutional considerations - Pension spending influences welfare in old age, labor markets, tax compliance, and the macroeconomy and fiscal landscapes; rigorous quantitative analysis is essential as Vietnam is rapidly ageing and social security faces increasing pressure. - Integration of the pension modeling tool into routine policy processes is recommended to support prudent, long-term fiscal and social security policy choices. - With recent reshuffling of the public administration in Vietnam, continued training for newly appointed staff and updates to the pension modeling tool are important to capture significant implications of the reform. ### IMF alignment - The initiative aligns with the IMF’s broader surveillance and lending frameworks, emphasizing sound fiscal policies to maintain economic stability and promote growth. --- ### Training for Vietnam General Department of Taxation (GDT): Tax Statistics Analysis Workshop (February 2025) - Context: - The General Department of Taxation (GDT) collects extensive electronic tax data but lacks integrated databases and models for ready interpretation. - Governance practices restrict information flow within GDT and between agencies (e.g., Department of Customs and MoF Tax Policy Department), limiting analytical responsiveness to MoF requests for tax policy analysis and revenue estimates for legislative proposals. - Workshop activities: - FAD Tax Policy conducted a mission including a four-day workshop in February 2025 advising the Tax Declaration and Accounting Department and several other GDT departments on establishing a tax statistics analysis unit. - Presented tools and techniques to enhance analytical capacity, including: - revenue forecasting models, - corporate and personal income tax microsimulation models, - a VAT GAP model based on supply-and-use tables, - indirect tax distribution models based on household consumption data. - Advised on organizational reforms to improve internal and interagency information sharing and access to broad tax datasets for analytical work. - Institutional progress: - Since the workshop, GDT consolidated analytical functions of several former departments into a new Tax Budget, Accounting and Statistics Department as part of a broader government reorganization. - Consolidation is intended to improve internal information flow and cross-cutting analysis of tax administration and policy issues. - Future capacity development: - Deepening internal and interorganizational data access remains important to secure results. - Improved tax statistics should facilitate IMF surveillance and more tailored CD advice. - GDT expressed interest in further FAD Tax Policy CD on microsimulation modeling and distributional analysis in particular. *Source: Japan-IMF Partnership on Capacity Development Annual Report — Box 2 (FAD_VNM_2023_01, FAD_APD_2023_02).* ### Box 7. ICD Online Learning ### Box 7. ICD Online Learning ### Strengthening Global Understanding of IMF Financial Operations - IMF Financial Operations Online Course launched in July 2024 as the first FIN–ICD collaboration in online course design. - Target audience: policymakers, government officials, and the general public to demystify the IMF’s financial operations and international monetary system. - Key content features: - Real-world case studies spotlighting how different countries utilized their 2021 SDR allocations. - Interviews with three IMF Executive Directors. - Cross-departmental development: multiple FIN divisions, strong front office support, and contributions from the IMF Young Professionals Group. - Reach and outcomes (FY2025): - Nearly 1,000 participants from over 140 countries. - Almost 800 completing the course. - Learner feedback rating: 4.6 out of 5. - Government officials’ average learning gain: 22 percentage points. - 84% of participants scored above 60% on the post-course test. - Overall course pass rate: 80%. - Visibility and uptake: - Featured in the Peek-into-Training session during the 2024 Annual Meetings of the IMF and WB. - Peek-into-Training session: 1,271 online views and 186 in-person attendees; second most-viewed capacity development event at the 2024 Annual Meetings. - Incorporated into the Internal Economics Training curriculum for IMF staff; modular format facilitated internal adaptation. ### Macroeconomic Policy Communication: IMF’s First Custom-Built Blended Course - Course delivery: January 2025. - Significance: - First time communication was offered as a self-contained, comprehensive course in IMF CD and training curriculum. - First IMF training course intentionally designed in a blended format from inception. - Rationale: demand from country authorities, particularly from low-income and FCS, for tailored communication training to convey complex macroeconomic concepts clearly and effectively. - Course structure: - Ten days of online self-paced learning. - One week of interactive in-person sessions. - Participation: 30 participants from 14 countries, including central banks (CBs) and ministries of finance (MoFs). - Pedagogical features: - In-person sessions used practical simulation exercises and case studies. - Integration of Generative AI tools to facilitate interactive learning and active application. - Outcomes: - Built participant skills and fostered a network of professionals improving communication strategies within institutions. - Demonstrates IMF commitment to improved training modalities and more informed macroeconomic policymaking. ### Leveraging Online Learning Initiatives: Blended Climate in Macroframeworks (CMF) Course - Pilot delivery: January–February 2025. - Course purpose: Train participants to incorporate climate effects and policies into macroeconomic frameworks, offering Excel-based frameworks, tools, and models. - Course design and prerequisites: - Split into an asynchronous online component and a synchronous in-person component to ensure baseline comprehension. - Asynchronous component: two weeks completing material from the blended FPP course and the online DDT course (DDT converted to SCORM e-learning format). - Moodle course site created by ICD following its blended learning standard. - Pilot version of the AI tutor, KIRON, supported participants as they worked through DDT material. - Outcomes and learner feedback: - Average learner rating: 4.7 out of 5. - Average learning gain: 21 percentage points. - 73% of participants scored above 60% on the post-course test. - Participants reported the course was extremely useful for incorporating climate-related issues, including macroeconomic effects of natural disasters, into macroeconomic frameworks. - Integration of ICD initiatives: - Combined updated Macroeconomics of Climate materials, blended FPP course content, SCORM conversions, AI initiatives (KIRON), and redesigned Moodle course pages. - These innovations prepared participants to engage with advanced face-to-face material. ### Cross-cutting instructional design and technology innovations - Blended learning impact: - Since 2021, over 20 blended courses delivered by the IMF have resulted in improved learning outcomes and enhanced learner satisfaction; previously, blended courses were adaptations of in-person training, while MPC was designed as blended from inception. - Technology and standards: - Use of SCORM e-learning format for seamless integration into blended course sites. - Deployment of AI tutor KIRON as a pilot support tool. - Modular course formats enabling easy internal adaptation and incorporation into staff training. *Source: Japan-IMF Partnership on Capacity Development Annual Report* ### Box 12. New Macroeconomic Policy Communications Course Launched at STI ### Box 12. New Macroeconomic Policy Communications Course Launched at STI ### Course design and objective - A first-of-its-kind blended (in person and online) course on policy communications was launched at STI in January 2025. - The course was designed to help member country officials handle real life communication challenges. - The course was tailored to policy makers from low-income countries and fragile states. - Development of the course was made possible through the financial support of the Government of Japan, a principal funding partner of both the STI and the IMF Online Learning Program. ### Demand and collaboration - The course was requested by country authorities at the 2023 AM and at the 2023 Meeting of Asia-Pacific Directors of Training at STI. - STI developed and delivered the first such course in Asia with support from COM and ICD’s content designers and training divisions. ### Participation and format - 30 participants from 14 countries in the APD region attended the course. - The majority of participants were from central banks (CBs), with several participants from finance ministries. - Delivered in a blended format with a mandatory virtual prerequisite, combining face-to-face instruction and self-paced online modules. - The in-person week in Singapore took place January 20–24, 2025. - Lecture time during the in-person week was limited to allocate more space for practical simulation exercises. ### Practical exercises and learning activities - Practical simulations included preparing talking points to communicate a country official’s reaction to a sudden drop in the exchange rate and explaining why a policymaker could not reach a decision on time. - The course’s interactive nature allowed participants to be involved from start to finish. - Daily pulse surveys were implemented during course delivery to give instructors immediate insights and enable swift adjustments to participants’ learning needs. ### Use of generative AI and innovative tools - The course utilized innovative tools such as generative artificial intelligence (GenAI). - An AI-supported question-generator pilot tool assisted in creating test questions aligned with course content and objectives. - Participants used AI tools to summarize lengthy texts and refine their own drafts. - Instructors used AI tools to calculate readability scores and test content consistency. ### Reception and participant feedback - The course was very well received. Sample participant comment (CB official): - “The course content was exceptionally well-designed and delivered, making it highly relevant and practical for my work. The material was presented clearly and effectively, ensuring concepts were easy to understand and apply. The level of difficulty was perfectly balanced, challenging enough to stimulate learning without feeling overwhelming. Additionally, the course covered topics directly related to my professional responsibilities, providing valuable insights and tools that I can immediately implement in my role.” *Source: Japan-IMF Partnership on Capacity Development Annual Report* ### Box 19. Strengthening PFM in Selected Southeast Asian Countries (FAD_APD_2023_03) ### Box 19. Strengthening PFM in Selected Southeast Asian Countries (FAD_APD_2023_03) ### Cambodia — Medium-Term Fiscal Framework (MTFF), fiscal reporting, and accrual transition - The IMF’s CDOT supported the Ministry of Economy and Finance (MEF) in developing Cambodia’s first MTFF in 2019 and provided subsequent TA under the JSA program to improve forecasting and develop a medium-term fiscal strategy. - Efforts focused on: - fully integrating the MTFF into the budget process; - better managing fiscal risks; and - improving budget documents and reporting. - In FY2025, Cambodia published its first MTFF (2025–2027) with notable improvements, including: - a new section on Cambodia’s fiscal rules; and - a discussion on the fiscal risks to the government’s medium-term outlook. - Fiscal reporting and transparency support: - One TA mission was conducted in February 2025, alongside ongoing remote support, to assist the General Department of National Treasury (GDNT) of the MEF in transitioning to accrual accounting by 2030. - During the February 2025 mission, the GDNT decided to pilot the accrual of selected revenue and expenditure items in the preparation of the 2024 financial statements. ### Lao P.D.R. — Chart of Accounts modernization and digitalization enablers - The IMF’s CDOT supported the Ministry of Finance (MoF) on modernization of the Chart of Accounts (CoA) since 2019. - TA delivery included two missions in July 2024 and January 2025, plus continuous remote support to develop and implement a modern and integrated economic segment of the CoA. - The MoF approved the new CoA in December 2024 and mandated its implementation in the 2026 budget preparation cycle. - Expected outcomes and linkages: - Enhanced fiscal transparency and improved resource allocation. - The CoA is positioned as a lynchpin for defining, classifying, recording, and organizing government financial data, creating opportunities for the MoF to modernize and digitalize fiscal reporting and treasury functions. - Progress will support ongoing MoF reforms in Treasury Single Account (TSA) arrangements and system upgrades. ### Vietnam — Treasury management, cash management, and repo operations - The IMF provided continued TA to Vietnam since 2019 across treasury management and other PFM topics including fiscal risk management. - A key TA mission in July 2024 assisted the Vietnam State Treasury (VST) to: - assess progress toward being fully digital by 2030; and - recalibrate reform priorities. - VST achievements noted: - significant progress in consolidating cash resources in the government’s account, providing a base for more active cash management; - progressive improvement in cashflow forecasting capability; and - introduction of (reserve) repo, strengthening capacity to invest short-term cash surpluses. ### Cross-cutting recommendations and implementation priorities (derived from TA and missions) - Integrate the MTFF fully into the regular budget process to promote a more strategic approach to fiscal policy. - Strengthen fiscal risk analysis and explicitly discuss fiscal risks in medium-term fiscal documents. - Advance fiscal reporting by transitioning toward accrual accounting with piloting of accruals in financial statements ahead of full implementation. - Use a modern, integrated Chart of Accounts as the foundation to: - improve fiscal transparency; - enable better resource allocation; and - support digitalization of fiscal reporting, TSA reforms, and treasury system upgrades. - For treasury modernization and FPAS (Vietnam context): - sustain progress toward full digitalization by 2030 while recalibrating priorities as needed; - consolidate cash to enable active cash and short-term investment management (including repo operations); - continue to strengthen cashflow forecasting capabilities. *Source: Japan-IMF Partnership on Capacity Development Annual Report (Boxes 19 and 20).">* ### Box 21. Visibility Highlights in FY2025 (continued) ### Box 21. Visibility Highlights in FY2025 (continued) ### Regional Office for Asia and the Pacific (OAP): role and strategic focus - The IMF’s Regional Office for Asia and the Pacific (OAP) was established in Tokyo in 1997 to deepen the IMF’s engagement with the region. - In FY2025, OAP further aligned priorities to leverage its role as the main hub for the Fund’s presence in the region, fortifying OAP as a center for peer-to-peer learning and complementing regional training centers such as STI and TA offices like CDOT and SARTTAC. - Core OAP functions: - Facilitate policy dialogue and capacity development (CD) in Asia. - Contribute to regional cooperation and surveillance work. - Communicate the Fund’s messages to Japanese and regional audiences and promote recruitment from the region and Japan. - Coordinate relations with regional forums and maintain contacts with international organizations and diplomatic missions. ### Public relations and outreach: events, media, and recruitment promotion - Major events and outreach in FY2025: - Organized a high-level conference in Tokyo in March titled “Asia and the IMF: Resilience through Cooperation,” with opening remarks by Managing Director Kristalina Georgieva, Japanese Finance Minister Katsunobu Kato, and Bank of Japan Governor Kazuo Ueda, drawing more than 600 participants (including online viewers). The flagship event featured a panel attended by Deputy Managing Director Nigel Clarke. - Organized press briefings for the World Economic Outlook, the Regional Outlook for Asia and the Pacific, and the AIV consultation mission in Japan, resulting in strong media coverage and separate interviews with First Deputy Managing Director and APD Director. - Launched the first Open Media House in September to train dozens of journalists on using and analyzing IMF macroeconomic data and to build networks with OAP staff. - Maintained and constantly posted on Facebook, X, and the OAP website in both Japanese and English and revamped web pages. - JISPA promotion and recruitment outreach: - Promoted the Japan-IMF Scholarship Program for Asia (JISPA) via website, Facebook, X, multimedia content (videos, stories, social media posts). - Launched a social media campaign to promote recruitment of Japanese staff featuring interview articles of Japanese nationals working at the IMF; content placed on the OAP website and promoted on X, where it drew particularly high impressions and engagements. - OAP Director and other Japanese staff visited universities and high schools for public outreach. ### Managing regional relations and surveillance - OAP coordinates IMF relations with regional forums including ASEAN (and ASEAN+3/AMRO), EMEAP, SEACEN, ASEM, and Pacific Island Countries Central Bank Governors’ Meeting; participates on invitation and presents on global and regional developments. - OAP contributes to regional surveillance by: - Contributing to APD’s Regional Economic Outlook and promoting those findings throughout the region. - Monitoring and reporting regularly to HQ on regional developments, contributing to missions and related work. - Conducting research on regional economic policy issues and supporting IMF engagement with member countries. ### Delivering capacity development: programs, seminars, and peer-to-peer learning - OAP organizes seminars and conferences in selected CD areas financed with support from the Government of Japan. - JISPA administration and programming: - JISPA administers scholarships for graduate studies in macroeconomics and related fields in Japan; about 65 junior officials from Asia pursue each year graduate studies in Japan (JISPA). - There are 915 alumni of the scholarship program since it started in 1993. - For the 2025 academic year (October 1, 2024 to September 30, 2025), JISPA awarded 38 new scholarships and supported 66 scholars in total, including one PhD candidate. - JISPA-CE (Continuing Education Program) brings alumni back to Japan for topical, specialized instruction from ICD and STI instructors. - Programs for senior officials include JIMS, a week-long executive training course on macroeconomics at the graduate level, and peer-to-peer CD seminars and conferences. - FY2025 peer-to-peer CD events hosted or supported by OAP: - High-level workshop on Modern Central Banking (jointly with BOJ and MCM). - Peer-to-peer learning events on CBDC with LEG and MCM. - Event on digital money in fiscal operations with FAD. - Assistance to FAD for the Tokyo Fiscal Forum and the Tokyo Tax Conference. - Seminar on “Role of Peer-to-Peer Learning in Capacity Development” (bringing together IMF CD delivery departments, recipient country representatives, and Japanese MoF representatives). ### JISPA alumni distribution and affiliations (FY1993–2025) - Alumni by affiliation (FY1993–2025): - 504 (55%) Central Bank - 200 (22%) Ministry of Finance/Tax Authority - 114 (12%) Economic Affairs Ministry and Agency - 41 (4%) Statistics Bureau - 24 (3%) Trade/Commerce Ministry - 7 (1%) Cabinet Office - 25 (3%) Others - Program lifetime totals and milestones: - Since 1993, the program has awarded 1005 scholarships and 915 scholars have graduated. - Graduates have advanced to senior policymaking roles, including Governor and Vice Minister positions. ### Box 22 — Peer-to-Peer Learning Events on CBDC and Digital Money (FAD_IMF_2023_05, MCM_APD_2023_01) - Mainstreaming digital money in fiscal operations in Asia: - A high-level peer-to-peer learning workshop in Tokyo brought together over 40 senior officials from 17 Asia-Pacific countries to discuss using digital money for revenue collection, issuing tokenized government bonds, integrating the Treasury with Fast Payment Systems and digital public infrastructure, and piloting programmable payments using CBDCs. - Country examples discussed: Philippines tokenized treasury bonds; Kazakhstan’s programmable “Digital Tenge”; Thailand’s pandemic-era digital incentive schemes. - Workshop activities included interactive simulations and scenario-based discussions on digital risks, exclusion, and privacy, and case studies from Cambodia, Bhutan, and India on leveraging digital public infrastructure and data platforms. - Participant rating: 4.9/5. - Advancing legal readiness for CBDC in Asia: - LEG, in collaboration with OAP, convened a high-level closed-door roundtable in Tokyo on March 18–19, 2025, hosted by LEG’s Director and supported by the JSA CBDC CD work. - The inaugural event brought together 26 senior CBDC experts from 14 central banks across the region. - Participant rating: 4.8/5. - Key legal insights from the roundtable: - Consensus on moving beyond the account/token-based dichotomy. - Need to adapt legal tender definitions for digital use. - Importance of clear property rights and legal frameworks for CBDC circulation. - Discussion of CBDC rulebooks, settlement finality, and early-stage thinking on cross-border legal interoperability. - Outcomes and follow-up: - The roundtable is expected to spark improvements in legal frameworks underpinning CBDC issuance and prepare countries for digital transformation relevant to IMF surveillance and future program design. - LEG set up a peer-learning platform via an email group for ongoing collaboration; materials will be circulated regularly. - LEG’s Director frequently mentioned JSA’s support to the roundtable throughout the event and it was acknowledged by participants. - Date of roundtable: 19 March 2025. - Location: New Otani Hotel, Tokyo, Japan. ### Japan-IMF Scholarship Program for Advanced Studies (JISP) — key metrics and outcomes - JISP began operating in 1996; since 2009 only Japanese nationals have been eligible. - Program design: - Funds two years of tuition and reasonable living expenses for doctoral studies abroad (commonly in the United States, Canada, Europe, Australia, Singapore). - Includes a brief orientation in Washington, D.C., participation in the Fund Internship Program, and invitations to IMF events. - After graduation, scholars are required to apply to the IMF Economist Program (EP) and accept an EP position if offered. - Outputs and staffing outcomes: - Since inception, 37 JISP alumni have joined the IMF, 17 of whom were Japanese. - As of May 2025, 26 JISP alumni are still working at the IMF. - The most recent scholar joined the Fund in September 2022. - Of the 26 former JISP alumni currently on staff, 21 were hired through the EP and the remainder joined at the mid-career level. - JISP is administered by the IMF in collaboration with the Institute of International Education (IIE). - Table 6 (Applicants and Scholars who Accepted Award, 2009–2025) as presented in the report: - Applicants121118129616131412171415951517215 - Scholars Who Accepted Award7775534334446333576 *Source: Japan-IMF Partnership on Capacity Development — Annual Report, Japan-IMF Partnership on Capacity Development (FY2025).* ### APPENDIX I. ### APPENDIX I. JSA Technical Assistance and Training—FY2025 Portfolio Summary ### FY2025 Program (selected programs and budgets) - APD/FAD/FAD JSA Domestic Revenue Mobilization (Tax Policy) in PIC — 2.0 - APD/FAD/FAD JSA Customs Reform and Modernization Program for Selected Countries in APD — 2.8 - APD/FAD 14th IMF-Japan High-Level Tax Conference for Asian Countries — 0.3 - AFR/ICD Supporting the Development of Macroeconomic Frameworks through Enhanced Field Presence in Central Africa — 1.5 - APD/ICD Building macroeconomic capacity for Cambodia, Lao P.D.R and Vietnam Country Officials (joint APD-ICD program) — 2.7 - APD/APD Building Macroeconomic Capacity for Cambodia, Lao P.D.R and Vietnam Country Officials (joint APD-ICD program) — 2.2 - Global LEG Improving Legal Frameworks in Public Debt Management — 2.0 - APD/AFR LEG Strenghtening Rule of Law and Reducing Corruption — 3.2 - Global MCM Debt management CD to FCS and LICs (Somalia and Domestic Securities Database for FCS and LICs) — 0.6 - APDS TA Improving External Sector Statistics in the Asia-Pacific Region — 3.4 - AFR S TA Strenghtening the Quality of Public Debt Statistics in Africa — 1.4 - Note: List includes programs under the regular JSA, COVID-19 and Digital Money windows. ### FY2024 Program (selected programs and budgets) - APD/FAD/FAD JSA Tax Policy Reform in Selected Asian Countries FY24-25 — 2.0 - APD/FAD/FAD JSA Strengthening PFM is Selected Southeast Asian Countries FY24-26 — 4.9 - APD/FAD/FAD JSA PFM Support for Sri Lanka FY24-25 — 1.9 - APD/FAD/FAD JSA Strengthening Government Capacity in Expenditure Policy Analysis FY24-26 — 1.9 - AFR/ICD Supporting the Development of Macroeconomic Frameworks — 3.0 - Global ICD The Japan-IMF Flagship Partnership on Online Learning — 7.7 - APD/MCM Strengthening Macroprudential Policy Implementation in Mongolia — 2.1 - APD/MCM Strengthening Debt Management in Sri Lanka, Maldives and Lao PDR- LTX Based in SARTTAC — 2.0 - Global MCM Funding Program for Japan Appointee — 0.3 - Global S TA Improving Data Dissemination for Globally Selected Countries - Phase II — 1.5 ### FY2023 Program (selected programs and budgets) - AFR/APD FAD JSA Digital Money/CBDC and Fiscal Policy, Operations and Management — 2.8 - AFR FAD AFR Strenghtening Fiscal Sustainability in Fragile States — 8.0 - APD FAD Revenue Mobilization Support (Tax Administration) for Selected Asian Countries — 5.7 - Global FAD Domestic Revenue Mobilization (Tax Policy) in Selected Low-income Countries — 4.5 - Global FAD Infrastructure Governance Facility II — 9.9 - Global ICD Developing Macroeconomic Forecasting and Nowcasting Techniques — 3 .1 - Global ICD Strengthening Fiscal and Debt Sustainability, and Sustainable Growth, through Macroeconomic Frameworks and Debt Dynamic Analysis for Forecasting in Selected Asian, African and Middle Eastern Countries — 5.8 - Global MCM JSA CBDC CD Work — 5.0 - Global MCM JSA CBDC Analytics and Development — 5.4 - APD MCM Strengthening Bank Supervision — 1.8 - APD S TA Strengthen Macroeconomic and Financial Statistics Compilation and Dissemination in the Asia-Pacific region: Government Finance Statistics (GFS) and PSDS Project (JSA4) — 2.6 ### FY2022–FY2018 Program highlights (selected) - FY2022 - Global FAD PFM COVID-19 — 4 .1 - APD ICD STI - Continuing Training and Technical Assistance on Economic and Financial Policy Analysis in Asia — 12. 3 - APD MCM Monetary Policy in Cambodia — 1.4 - APD S TA Improving External Sector Statistics in the Asia-Pacific Region — 2.2 - FY2021 - APD/AFR FAD Strengthening and Modernizing Customs Administration in Asia and West Africa — 8.5 - APD MCM Strengthening Debt Management Operational Frameworks in Asia-Pacific — 4.4 - AFR MCM Strengthening Debt Management Operational Frameworks in Africa — 5.0 - FY2018 - APD MCM Supporting Monetary and Foreign Exchange Operations in Cambodia, Myanmar and Vietnam — 4 .1 ### Cross-cutting themes and program focus areas - Domestic revenue mobilization (tax policy and tax administration) across PIC and selected Asian and low-income countries. - Public financial management (PFM) strengthening, including expenditure policy analysis and PFM support for Sri Lanka. - Debt management capacity building, legal frameworks in public debt management, and public debt statistics quality improvement. - Macroeconomic frameworks: building forecasting/nowcasting capacity, supporting macroeconomic frameworks in Central Africa and other regions. - Digital money/CBDC analytics, operational work, and fiscal policy implications under JSA-supported CBDC programs. - Data and statistics enhancement: external sector statistics, government finance statistics (GFS), and data dissemination programs. - Capacity development delivered via joint APD-ICD programs, SARTTAC-based LTX support, and online learning partnerships. ### Financial snapshot — Administered Accounts: Japan Financial Statement (FY2025, in thousands of U.S. dollars) - Balance Sheet as of April 30, 2025, 2024 and 2023 - Assets — Cash and cash equivalents: 74,047 75,810 96,961 - Total assets: 74,047 75,810 96,961 - Resources — Total resources: 74,047 75,810 96,961 - Income Statements and Changes in Resources for the Years Ended April 30, 2025, 2024 and 2023 - Balance, beginning of the year: 75,810 96,961 116,525 - Income earned on investments: 3,498 4,859 3,485 - Contributions received: 42,974 21,334 17,315 - Contributions transferred (net): (6,700) (3,600) (3,100) - Operating expenses: (41,535) (43,745) (37,264) - Net changes in resources: (1,763) (21,151) (19,564) - Balance, end of the year: 74,047 75,810 96,961 - Note: The IMF arranges for an annual audit of the JSA to be undertaken by its external auditors, in connection with their annual audit of the IMF’s own accounts, and for a separate certificate of completion to be provided to the Japanese authorities. - Footnote: 1 Net of accruals. The financial statement of the Administered Accounts in the IMF annual report, which includes this Subaccount, reports year end accruals separately. *Annual Report — Japan-IMF Partnership on Capacity Development* ### ANNEX I. ### ANNEX I. JSA Technical Assistance and Training - FY2025 Portfolio Detailed ### Portfolio overview - The document lists JSA Technical Assistance and Training programs with program identifiers, JSA/IMF IDs, regions, topics, status, and financials (Overall Program Budget; Approved Budget through FY2025 1/; Expenses through FY2025), expressed in millions of U.S. dollars. - Note on budgets: "1/ Approved budgets are based on the figures approved until FY25 cycle. *List includes programs under the regular JSA, COVID-19 and Digital Money windows **List includes extensions approved during FY25 interim assessment period." ### Selected program financials (millions of U.S. dollars) - FAD JSA Domestic Revenue Mobilization (Tax Policy) in Pacific Island Countries - JSA#: JPN143; IMF ID: FAD_APD_2024_01 - Overall Program Budget: 2.0 - Approved Budget through FY2025 1/: 0.7 - Expenses through FY2025: 0.5 - FAD JSA Customs Reform and Modernization Program for Selected Countries in APD - JSA#: JPN144; IMF ID: FAD_APD_2024_02 - Overall Program Budget: 2.8 - Approved Budget through FY2025 1/: 0.8 - Expenses through FY2025: 0.3 - Supporting the Development of Macroeconomic Frameworks through Enhanced Field Presence in Central Africa - JSA#: JPN213; IMF ID: ICD_AFR_2025_01 - Overall Program Budget: 1.5 - Approved Budget through FY2025 1/: 0.5 - Expenses through FY2025: 0.1 - Building Macroeconomic Capacity for Cambodia, Lao P.D.R and Vietnam Country Officials (joint APD-ICD program) - JSA#: JPN605 / JPN212; IMF IDs: APD_TTA_2024_02 / ICD_APD_2024_01 - ICD component Overall Program Budget: 2.7; Approved Budget through FY2025 1/: 1.1; Expenses through FY2025: 1.0 - APD component Overall Program Budget: 2.2; Approved Budget through FY2025 1/: 0.7; Expenses through FY2025: 0.5 - Improving Legal Frameworks in Public Debt Management - JSA#: JPN305; IMF ID: LEG_AFR_2024_03 - Overall Program Budget: 2.0 - Approved Budget through FY2025 1/: 0.5 - Expenses through FY2025: 0.2 - Strengthening Rule of Law and Reducing Corruption - JSA#: JPN304; IMF ID: LEG_IMF_2024_07 - Overall Program Budget: 3.2 - Approved Budget through FY2025 1/: 1.3 - Expenses through FY2025: 1.6 - Debt management CD to FCS and LICs (Somalia and Domestic Securities Database for FCS and LICs) - JSA#: JPN427; IMF ID: MCM_IMF_2024_05 - Overall Program Budget: 0.6 - Approved Budget through FY2025 1/: 0.3 - Expenses through FY2025: 0.3 - Improving External Sector Statistics in the Asia-Pacific Region - JSA#: JPN518; IMF ID: STA_APD_2024_01 - Overall Program Budget: 3.4 - Approved Budget through FY2025 1/: 1.1 - Expenses through FY2025: 0.9 - Strengthening the Quality of Public Debt Statistics in Africa - JSA#: JPN517; IMF ID: STA_AFR_2024_01 - Overall Program Budget: 1.4 - Approved Budget through FY2025 1/: 0.6 - Expenses through FY2025: 0.3 ### Key findings, activities, and outcomes by program - FAD JSA Domestic Revenue Mobilization (Tax Policy) in Pacific Island Countries (JPN143; FAD_APD_2024_01) - Implementation period: May 1, 2024, to April 30, 2027. - Purpose: Strengthen tax revenue performance while promoting equity and growth in Pacific Island Countries (PIC); improve tax policy design, monitoring, evaluation, and institution building through policy advice, capacity building, and peer-to-peer learning. - Country highlights: - Fiji: November 2023 mission defined benchmark tax system and compiled a tax expenditure (TE) inventory; April 2025 mission performed in-depth costing and evaluation of Fijian TEs and assessed TE governance. MOF leadership targets introducing TE reporting in the FY2026 Budget Supplement and a first full report for FY2027. - Kiribati: Authorities drafted VAT legislation amendments following April 2024 mission recommendations; FAD STX assistance in May 2024 and remote guidance informed VAT Amendment Bill 2025 on valuation basis for imports, VAT on cross-border services, and digital currency. - Marshall Islands: December 2024 mission analyzed revenue, efficiency, and distributional impacts of moving from turnover/import/local sales taxes to VAT, excises, and profit taxation; legislation planned to be passed by October 2026 with further CD in FY26. - Palau: November 2024 tax policy diagnostic mission assessed recent reforms (Palau Goods and Services Tax and Business Profit Tax introduced in 2023) and identified near-term refinements and medium- to long-term modernization options. - Regional engagement: - PITAA Meeting (2024) in Vanuatu: FAD delivered sessions on tax policy formulation and engaged bilaterally with PIC delegations; FAD expected to join the next PITAA Meeting in Tonga, focusing on TE policy frameworks. - PACER Plus Workshop (2025): FAD delivered three sessions on economic/revenue analysis of PACER-Plus, VAT design principles, and core TE policy principles; follow-up TE policy workshop scheduled for October 2025 in Nadi, Fiji. - FAD JSA Customs Reform and Modernization Program for Selected Countries in APD (JPN144; FAD_APD_2024_02) - Implementation period: May 1, 2024, to April 30, 2027. - Purpose: Enhance customs administration capacity to collect revenue and control revenue leakage through organizational, management, procedural reforms, and stronger rule of law without impeding trade. - FY2025 delivery: Regional workshops, virtual and in-person bilateral engagements. - Regional engagements: - Cambodia: Regional workshop on use of information and communication technology systems in customs administrations emphasizing customs IT systems for clearance and data management. - Participation in the 2024 OCO Annual Meeting (Cook Islands): agreed with OCO Secretariat and partners on FY26 regional customs workshop theme and format. - Bilateral engagements: - Maldives: In-person and remote CD; progress in cargo management digital applications and strengthening fiscal fraud investigation program. - Vietnam: CD to improve operational effectiveness of National Targeting Center and risk-based targeting methodologies. - Cambodia: Expert visit advising on strengthening digital infrastructure and operational practices. - Supporting the Development of Macroeconomic Frameworks through Enhanced Field Presence in Central Africa (JPN213; ICD_AFR_2025_01) - Implementation period: May 1, 2024, to April 30, 2027. - Purpose: Supplement internally funded resident macroeconomic frameworks advisor hosted by AFRITAC Central; wider remit of countries. - FY2025 activities and outcomes: - Needs assessment missions in Equatorial Guinea, Republic of Congo, Gabon, and Cameroon; projects in these countries and two in Burundi to be launched in FY26. - Continued TA with Chad’s MoF on a macroeconomic projection tool and scenario analysis; virtual and in-person engagements to calibrate the tool. - Resident advisor delivered regional FPP course in Ghana in collaboration with the West African Institute for Financial and Economic Management with positive impact on participant skills. - Building Macroeconomic Capacity for Cambodia, Lao P.D.R and Vietnam (joint APD-ICD program; JPN605 / JPN212) - Implementation period: May 1, 2024, to April 30, 2027. - Purpose: Support CD in macroeconomic forecasting via a regional macro frameworks advisor and tailored training courses. - Cambodia: - Core macro group updated and independently managed macroeconomic framework; produced Cambodia’s first MTFF; in-person mission June 2024 for baseline forecasts and scenario analyses. - FPAS for National Bank of Cambodia: phase two to develop QPM for medium-term forecasts with in-person training on monetary policy analysis. - Lao P.D.R.: - Strengthened multi-agency core group capacity; produced an initial baseline scenario; September 2024 mission on DDT for public debt forecasting. - FPAS for Bank of Lao P.D.R: missions focused on near-term forecasting tools for inflation and exchange rate analysis given high inflation rates. - Vietnam: - Built capacity of newly formalized multi-agency core group; one-week Fiscal Policy and Public Debt Analysis course delivered; developed a customized macroeconomic framework tool; core group presented findings in policy meetings. - FPAS for SBV concluded September 2024; FPAS now informs SBV monetary policy conduct though interdepartmental engagement can be improved. - Training outcomes (FY2025): - Monetary Policy course (July 2024): learning gain of 34 percentage points. - Macroeconomic Diagnostics course (September 2024): learning gain of 28.2 percentage points. - Exchange Rate Policy course (April 2025) tailored for CLV authorities. - Improving Legal Frameworks in Public Debt Management (JPN305; LEG_AFR_2024_03) - Implementation period: May 1, 2024, to December 31, 2027. - Staffing: Ms. Ana Obiang Ndong commenced as Legal Advisor on public debt management in November 2024. - FY2025 outputs: - Virtual participation in TA mission on Local Currency Bond Market Development in Papua New Guinea (January 2025). - Comments on Mozambique’s draft amendments to Decree 5/2013 (February 2025). - Review and advice on the Cabinet Paper for reform of the Seychelles Public Debt Management Act (March–April 2025). - Delivered legal perspective sessions at ICD Course on “Fiscal Sustainability” at ATI (March 2025), Training on “Debt Reporting and Investor Relations” in Arusha, Tanzania (April 2025), and LCBM Workshop in Arusha (April–May 2025). - Strengthening Rule of Law and Reducing Corruption (JPN304; LEG_IMF_2024_07) - Implementation period: May 1, 2024, to April 30, 2027. - Purpose: Support IMF lending and surveillance by strengthening anti-corruption and rule of law in priority countries; successor to first JSA Anti-Corruption and Rule of Law Capacity Building Project. - FY2025 activities and country engagements: - Sri Lanka: Diagnostic Report on Governance and Diagnostic (GD) prepared and published; TA missions in October 2024 and January 2025 supported operationalization of CIABOC strategic plan and asset declaration system; work ongoing to align managerial practices. - Burundi: GD sections produced on severity of corruption, governance weaknesses, and effectiveness of anti-corruption frameworks; political economy expert engaged; comprehensive GD report expected in 2025. - Burkina Faso: Scoping mission June 17–21, 2024; hybrid main mission September 9–20, 2024; comprehensive GD report with prioritized reform plan being drafted. - Pakistan: GD requested June 24, 2024; scoping mission February 2025 and main mission April 2025; political economy expert engaged; comprehensive GD report being finalized for publication in 2025. - Sierra Leone: Scoping mission November 4–8, 2024; main mission February 2025; comprehensive GD report being finalized for publication in 2025. - Zambia: TA report transmitted October 2024 with proposed legal and procedural reforms including changes to the Anti-Corruption Act, asset declaration principles, and whistleblower protection legislation. - Benin: TA to operationalize the High Commission for the Prevention of Corruption; comprehensive TA report submitted September 2024; authorities committed to amending law to strengthen HCPC independence and operationalization. - Regional placement and training: - Governance and anti-corruption long-term RA housed in AFRITAC South; contributed to GCDs for Burundi and Burkina Faso and post-GCD TA in Zambia and Benin. - Course "Confronting Macro-Critical Corruption" tailored for high-level regional seminars offered at ATI, AFRITAC South (March 2025), and AFRITAC West 2 (April 2025). - Debt management CD to FCS and LICs (Somalia and Domestic Securities Database for FCS and LICs) (JPN427; MCM_IMF_2024_05) - Implementation period: May 1, 2024, to April 30, 2026. - Dual objectives: (i) build domestic securities database for low-income countries (LICs) and fragile and conflict-affected states (FCS); and (ii) provide debt management CD to Somalia’s MoF (institutional building, analytical capacity, and regulatory revisions). - FY2025 progress: - Master analytical template developed to assess all 76 eligible countries. - Initial findings: 47 countries had some data; 3 had limited entry and were excluded; of the remaining 44, 21 require additional due diligence due to data misalignment with authorities’ publications or the WEO; findings from 23 countries are contributing to Fund analytical work (e.g., Global Financial Stability Report) and to debt management CD efforts. - Next steps in FY26: due diligence for remaining 21 countries and organization of findings into a publishable format. - Somalia: Following first mission, authorities prepared and published the 2024 annual debt management report; after the second mission drafted a MTDS and plan to publish it in the last quarter of 2025 alongside the budget; plan to publish an annual borrowing plan after the third mission. - Program approach: programmatic CD with explicit outputs and standard operational procedures manual to ensure sustainability and continuity. - Improving External Sector Statistics in the Asia-Pacific Region (JPN518; STA_APD_2024_01) - Implementation period: July 1, 2024, to June 30, 2027. - Purpose: Strengthen collection, compilation, and dissemination of balance of payments (BOP) and international investment position (IIP) data for CDOT beneficiary countries. - FY2025 outcomes: - Program extended to June 2027 due to strong demand. - Prioritized countries: Cambodia, Lao PDR, Vietnam, and Papua New Guinea. - Country-level progress: - Cambodia: progress in compiling direct investment data for banks using audited financial statements; improving travel services measurement. - Lao PDR: conducted Financial Assets and Liabilities Survey (FALs) for major resident companies; IIP and external debt statistics compiled. - Vietnam: initiated updates to ESS legal framework since second quarter of 2025 to align with latest international macroeconomic standards. - Kiribati: compiled and disseminated quarterly BOP and IIP data for 2023 and completed Coordinated Direct Investment Survey data for the first time. - Nauru: progress addressing ESS shortcomings. - Papua New Guinea: conducted FALs for major companies and produced a preliminary draft IIP for 2022-2023. - Samoa, Timor-Leste, Tonga: various improvements in ESS compilation including remittances, direct investment, travel, and BOP components. - Capacity building: two blended specialized courses delivered during FY2025—one on compilation of direct investment statistics for more complex economies (Cambodia, Lao PDR, Papua New Guinea) and one addressing remittances and challenges in Pacific Island Countries. - Strengthening the Quality of Public Debt Statistics in Africa (JPN517; STA_AFR_2024_01) - Implementation period: May 1, 2024, to April 30, 2026. - Purpose: Conduct qualitative assessments of Public Sector Debt Statistics (PSDS) in select African countries to prioritize actions to improve public debt transparency; assessments aligned with D4D Fund objectives and based on IMF’s DQAF. - FY2025 achievements: - Four PSDS quality assessments completed for Malawi, Tanzania, Zambia, and Zimbabwe; diagnostic assessment reports and high-level summaries published. - Partner organizations involved: World Bank, Commonwealth Secretariat, and UNCTAD. - Key country assessment findings and recommendations: - Malawi: good alignment to international standards and robust validations of external borrowing data; recommendations to strengthen legal framework for debt management responsibilities, expand coverage to expenditure arrears, improve timeliness of debt publications, and interface debt management and reporting system with the central securities depository. - Republic of Zambia: progress in strengthening public debt management and transparency; recommendations for regular publication of stock–flow reconciliations, more granular arrears data, expanded institutional coverage, and use of National Summary Data Page for machine-readable debt data. - United Republic of Tanzania: strengths in legal and institutional arrangements; recommendations to expand sector coverage, improve metadata, and utilize the joint IMF-World Bank Quarterly PSDS AF database. - Zimbabwe: strong legal and institutional framework with good practices in source data auditing and reconciliation; recommendations to expand sector coverage, apply residency principle to distinguish domestic vs external holdings, expand metadata, and interface debt management system with government IFMIS. ### Cross-cutting implementation features and capacity-building outcomes - Programmatic and sequenced CD delivery to ensure continuity and sustainability (examples: Somalia debt management CD; macro frameworks advisor in Central Africa). - Use of blended learning (in-person and online) and tailored regional workshops to complement in-country TA (examples: macroeconomic training courses with quantified learning gains; ESS blended courses). - Emphasis on legal and institutional reform design, operationalization, and publication of outputs to enhance transparency and inform policy (examples: Sri Lanka PFM Law and FSS; Somalia debt management publications; PSDS diagnostic reports). - Coordination with regional partners and other development partners (examples: PFTAC, OCO Secretariat, World Bank, Commonwealth Secretariat, UNCTAD, ADB, ATI, AFRITACs). *Japan-IMF Partnership on Capacity Development Annual Report — ANNEX I.* ### 2029. It enhanced policy commitment to fiscal management, communicated fiscal challenges effectively, and established a ### jsa2025 - 2029. It enhanced policy commitment to fiscal management, communicated fiscal challenges effectively, and established a ### Extension and operationalization of PFM support for Sri Lanka - The CD program has been extended until the end of April 2026 to continue FAD support to the government of Sri Lanka in operatizing the new PFM Law and strengthening the building blocks for a sound PFM system. - A multi-department task force was established to develop the Unified Chart of Accounts. - A Steering Committee was formed to oversee the implementation of the IT Management Information System. ### FAD JSA — Strengthening Government Capacity in Expenditure Policy Analysis (FY2024-26) — JSA#: J PN138; IMF ID: FAD_VNM _ 2023_01; Implementation: May 1, 2023, to April 30, 2026 - Objective: assist Vietnam, Kiribati, Nauru and Palau in increasing the effectiveness of their spending programs by adopting reforms that improve fiscal sustainability, adequacy, and efficiency of public spending through TA missions, training, desk reviews, and on-demand consultations. - Vietnam - Engagement ongoing since 2023. - Program comprises a pension micro-simulation model capable of detailed projections, sensitivity analyses and fiscal and welfare impact analyses of regulatory changes. - FY2025 activities: one onsite one-week training session, weekly on-line consultations, and an in-person visit. - Late 2025: major reorganization led to a temporary halt of all project activities until new staff were appointed. - Current FAD focus: identify new stakeholders, engage them to agree project objectives and evaluate needs. - Kiribati - Field-based TA mission on reforming copra subsidies took place in May 2024 (scale and distributional incidence assessed). - Follow-up field-based TA mission in April 2025 focused on implementation strategies; proposed redirecting potential fiscal savings toward promoting non-copra agricultural production and strengthening markets for domestically cultivated fresh produce. - Authorities indicated intention to take findings into account during interministerial steering committee discussions on a national food and nutrition security strategy. - Nauru - Government employs 85 percent of the labor force (including SOEs). - Employment size has doubled since 2019. - Mission provided recommendations that led authorities to promptly revise policy; government actions included targeting support on establishment of small and medium enterprises to create opportunities outside public sector employment. - Palau - FAD supported consensus-building on employment and compensation reforms. - Projection model to forecast the wage bill is now being used by the authorities. - Authorities requested further support to draft terms of reference, adjust public service system policy, and assist implementation at the end of FY2025. ### Supporting the Development of Macroeconomic Frameworks — JSA#: J P N 211; IMF ID: ICD_AFR_2023_01; Implementation: May 1, 2023, to April 30, 2027 - Objective: enhance macroeconomic analysis and forecasting capabilities of government ministries and central banks. - Resident advisor appointed in August 2024 and hosted in AFRITAC East. - FY2025 focus: needs-assessment missions and workshops; establishment of strong relationships with authorities to identify CD needs. - Notable achievements: - Needs assessment missions with Ethiopian, Ugandan and Rwandan authorities. - Scoping mission for the CB of Kenya for macroeconomic framework TA. - Delivery of a training course (Macroeconomic Diagnostics) at AFRITAC East. - Joint workshop for the East African Community on climate risks in monetary policy. - Emphasis on durable impact via inter-institutional cooperation and tailored training using participants’ own data. ### Japan-IMF Flagship Partnership on Online Learning — JSA#: JPN210; IMF ID: ICD_IMF_2023_02; Implementation: May 1, 2023, to April 30, 2026 - Program reach and scale - Since inception in 2013, close to 120 new courses developed. - Attracted over 230,000 active learners, including approximately 70,000 government officials who have successfully completed an online course. - In FY2025: over 27,000 active learners; government officials accounted for about 9,000 of the total 15,000 course completions. - IMF Institute Learning Channel: over 19,300 permanent subscribers and generated 1.4 million views. - FY2025 curriculum expansion - 17 new online courses; 9 in languages other than English (LoE). - New course examples: AML/CFT Risk-based Supervision of Financial Institutions (AML/CTFx), IMF Financial Operations (FIN-OPSx), Introduction to Financial Programming and Policies (FPP.0x), Institutional Sector Accounts (ISAx), Monetary and Financial Statistics (MFSx), Residential Property Price Index (RPPIx), VITARA-ITD modules, Taxpayer Registration (VITARA-TPR), Projecting Public Debt (DDTx) in Arabic, FSIx, MFSx, PPIx and VITARA-CRM in Spanish and French. - 140 course reruns and 14 courses designed for blended CD delivery. - Learning outcomes in FY2025 - Completion rate: 68 percent. - Learning gains: 19 percent for government officials. - End-of-course survey results: 98 percent reported learning objectives met; 93 percent recognized courses' relevance to jobs and career development. - Use in blended and cohort training: over 160 government officials completed self-paced preparatory courses; 30 young officials from CCAMTAC countries and Moldova participated in a blended macroeconomic cohort training. ### Mongolia — Strengthening Bank of Mongolia Capacity in Macroprudential Analysis — JSA#: JPN424; IMF ID: MCM_MNG_2023_01; Implementation: May 1, 2023, to April 30, 2026 - Objective: support the Bank of Mongolia (BOM) in enhancing its framework for macroprudential policy across governance, analysis, and instrument calibration. - FY2025 achievements - Comprehensive review of existing operational framework completed with specific recommendations. - Preparations to amend the Central Bank Law to clarify BOM’s financial stability mandate, separate macroprudential responsibilities from the Monetary Policy Committee, and strengthen institutional autonomy. - Preparations advanced for establishment of a dedicated Financial Stability Department within BOM. - Developed a methodology for countercyclical capital buffer tailored to Mongolia’s economic characteristics. - Established a comprehensive data registry to support systemic risk assessment. - Developed a macroprudential policy cycle outlining quarterly tasks and communication protocols. - Multiple training sessions delivered to senior management and technical staff. - Outlook: incoming resident advisor expected to update the workplan to ensure effectiveness, impact, and sustainability. ### Strengthening Debt Management in Sri Lanka, Maldives, and Lao PDR — JSA#: JPN425; IMF ID: MCM_ APD_2023_03; Implementation: September 1, 2023, to April 30, 2026 - Objective: strengthen debt management capacity in the MoFs of Sri Lanka, the Maldives, and Lao PDR with support from a resident advisor based at SARTTAC. - Sri Lanka - CD supports establishment and operational functionality of a new PDMO by December 2025, aligned with EFF structural benchmarks. - FY2025 progress: - Draft Public Debt Management Act developed with TA support and enacted by Parliament in June 2024. - New PDMO established in November 2024. - Public Debt Regulations and Guidelines finalized in December 2024 and in final approval process. - January 2025: TA mission on Domestic Debt Management delivered; recommendations being implemented. - Following regional MTDS training and virtual TA in February 2025, newly established PDMO developed and published its first MTDS. - March 2025: TA on Investor Relations Strategy and Communication Policy led to launch of a dedicated PDMO website. - Maldives - CD focuses on implementing TA and FSAP recommendations to address fiscal, debt, and sovereign-bank nexus challenges. - FY2025 result: significant improvement in quality and content of public debt bulletin to promote greater debt transparency. - Lao PDR - CD aims to enhance operational capacity of the Public Debt Management Department to formulate MTDS and Annual Borrowing Plan, promote debt transparency, establish investor relations program, and develop local currency bond market. - Work program agreed following resident advisor’s visit; implementation to initiate in FY26. - Regional peer-learning - September 2024: regional training workshop on MTDS Formulation in New Delhi in partnership with the World Bank. - 23 officials trained—14 from Sri Lanka, the Maldives, and Lao PDR; 9 from other SARTTAC member countries. - Sustainability measures: institutional capacity building, structured training, mentoring, Procedures Manuals, and envisaged engagement with the National Audit Office to improve auditing framework for public debt management. ### Improving Data Dissemination for Globally Selected Countries — Phase II — JSA#: J PN516; IMF ID: STA_IMF_2023_02; Implementation: May 1, 2023, to June 30, 2026 - Objective: promote data transparency and accountability by facilitating public access to key macroeconomic and financial statistics; support implementation of e-GDDS and SDDS first two tiers. - FY2025 progress and outputs - Successful launch of the NSDP for Guinea-Bissau in June 2024. - Regional workshop in Ghana in March 2025: Angola, Ghana and Uganda developed action plans for advancement to the SDDS. - Kosovo hosted a June 2024 workshop that raised high-level political buy-in and accelerated work towards SDDS subscription. - Côte d’Ivoire committed to subscribing to the SDDS in October 2024 after closer STA engagement since January 2024. - Rwanda progressing on government finance statistics with STA TA, though significant staff turnover slowed progress. - Botswana compiling general government operations, external debt, and the international investment position with STA TA; authorities reiterated interest in the SDDS during the 2024 IMF Annual Meetings. - Comoros prepared a draft NSDP but launch delayed by staff turnover and capacity issues. - Kiribati nominated contact persons for e-GDDS data categories and is reviewing data dissemination practices. - Niger mission in July 2023 trained staff on NSDP preparation and achieved all objectives; subsequent military coup halted the launch but STA staff continue to seek re-engagement. - Forward approach: complement workshops and select in-country missions with a new online learning tool to mitigate high staff turnover; continue in-country missions to support NSDP launch or SDDS subscription. ### JSA capacity development programs approved for FY2023 — JSA#: S_JPNDM; IMF ID: FAD_IMF_2023_05; Implementation: February 1, 2023, to April 30, 2026 - Program title: JSA Digital Money/CBDC and Fiscal Policy, Operations, and Management. - FY2025: project transitioned from foundational efforts to active implementation, with 2024 marking significant advances in analytical development, cross-country engagement, and global outreach. *Japan-IMF Partnership on Capacity Development Annual Report* ### 1. Flagship Book Development – “Reaping Benefits and Mitigating Risks of Digital Money in Fiscal Operations” ### 1. Flagship Book Development – “Reaping Benefits and Mitigating Risks of Digital Money in Fiscal Operations” ### Book scope and objectives - Explores how various forms of digital money—e-money, mobile money, CBDCs, and stablecoins—can enhance fiscal operations, including revenue mobilization, treasury management, and expenditure policies. - Integrates perspectives on opportunities and risks posed by both public and private digital money instruments. - Finalization of the book is expected by the first semester of 2026. ### Convening and multi-stakeholder inputs - FAD hosted a high-level three-day forum at the IMF Headquarters (December 2024) titled “Transforming Public Finance: Leveraging Digital Money.” - The event was convened by over 50 contributors from governments, academia, development partners (e.g., BIS, World Bank, OECD), and the private sector. - The forum facilitated idea exchange and fostered a multi-stakeholder approach to digital finance reforms in the public sector. ### Evidence generation: Cross-country survey - A cross-country survey targeting ministries of finance, revenue administrations, and financial institutions was launched. - The survey assesses the current use of digital money in fiscal operations, as well as institutional preparedness. - Participation is now reaching 68 countries. - The survey is generating an evidence base to inform technical assistance (TA) and upcoming publications. ### Capacity building and peer learning: Asia-Pacific workshop - FAD organized a peer-learning workshop in Tokyo (June 2024) in collaboration with regional partners. - The workshop brought together senior officials from 17 Asia-Pacific countries. - Topics and concrete examples covered: - Use of e-wallets for social spending. - Digital money in revenue collection. - Issuance of tokenized government bonds. - Integration of the Treasury with Fast Payment Systems and digital public infrastructure. - Pilots with programmable payments using CBDCs. - Participant feedback: rated 4.9/5. - The workshop influenced participants’ views and fostered interest in further adoption of digital money in fiscal processes. *Source: Fiscal Affairs Department (FAD) flagship book project and associated activities.* ### 4. Mobile Money Taxation Forum – Analytical Work Underway ### 4. Mobile Money Taxation Forum – Analytical Work Underway ### Purpose and context - Recognizing the growing fiscal relevance of mobile money taxation, the Fiscal Affairs Department (FAD) is advancing analytical work to assess the impacts of taxing mobile money transactions. - This analytical effort is part of a broader initiative to address the underexplored fiscal implications of digital money. ### Event: Digital Money and Tax Policy Forum - FAD, in collaboration with Goethe University Frankfurt and the Leibniz Institute SAFE, organized a “Digital Money and Tax Policy Forum” on March 7th, 2025, at the Goethe University Frankfurt campus. - The forum convened academics working at the forefront of digital money and taxation. ### Objectives and discussion themes - Discuss interactions between taxation and digital money. - Access current research on digital money and tax policy. - Identify key areas for further analysis to define the scope of taxation in digital money amid emerging technologies. ### Intended analytical and capacity-development outcomes - Insights from the forum will help shape FAD’s analytical agenda on digital money taxation. - The analytical work will support evidence-based capacity development in tax policy and digital money by addressing challenges and opportunities in tax policy design. *Source: International Monetary Fund — Fiscal Affairs Department (FAD) Annual Report entry: "Mobile Money Taxation Forum – Analytical Work Underway".* ### 2024. An action plan has been prepared that includes multiple missions to address capacity gaps in macroeconomic diagnos ### jsa2025 - 2024. An action plan has been prepared that includes multiple missions to address capacity gaps in macroeconomic diagnostics ### Macroeconomic frameworks — country project updates - Maldives: The Maldives Monetary Authority (MMA) continued to develop a customized macroeconomic framework tool with support from the ICD TA team. The focus in FY2025 was on refining the functionality of the tool and improving data quality for policy analysis. - Mauritania: The project with the Ministry of Economy and Finance focused on developing a customized version of the DDT tailored to Mauritania’s economic context, including specific adjustments for resource-rich countries. This is expected to enhance the country’s debt management and capacity to respond to shocks. A new project has been initiated to develop a macroeconomic framework that facilitates consistent economic projects and analysis. - Mongolia: The MOF, with ICD support, completed major components of the macroeconomic frameworks project, producing a coherent macro-fiscal outlook and an initial fiscal sector forecast. - Papua New Guinea: Despite delays due to security issues, progress in FY2025 included integrating expenditure-side GDP for forecasting and developing a macro-fiscal model to estimate the effects of fiscal policies. - Philippines: After a brief hiatus due to leadership changes at the Department of Finance, ICD re-engaged in FY2025 and the team initiated production of baseline and alternative macroeconomic forecasts using the CAEM. - Rwanda: No new activities in FY2025; the Ministry of Finance and Economic Planning met all project objectives and successfully integrated the Debt Dynamics Tool (DDT) into analytical processes. The DDT is now utilized for projections and analytical purposes. - Sri Lanka: Significant progress was made in developing a Macroeconomic Framework Tool to enhance data consistency and forecasting; ongoing training and support are planned for FY26. - Thailand: Project initiated in FY2025 to develop a DSGE model. A dedicated core group for macroeconomic analysis was established and DSGE training provided to the MOF. - Tunisia: Project with the MOF and CB nearing completion; key objectives largely achieved, including capacity for comprehensive forecasting and improved inter-agency coordination for macroeconomic policy discussions. - Zimbabwe: Project commenced in FY2025 with a scoping mission identifying needs for enhanced forecasting tools to feed into the MOF’s budget process. An action plan was agreed to develop a comprehensive macroeconomic framework; a follow-up mission introduced a macroeconomic frameworks tool to be customized for Zimbabwean authorities. ### Strengthening bank supervision — Cambodia (JSA#: JPN423; IMF ID: MCM_KHM_2022_01) - Objective: Enhance regulatory and supervisory frameworks of the NBC with focus on upgrading regulatory framework and building capacity for risk-based supervision (RBS). - Key regulatory developments in FY2025: - Regulation on liquidity for non-deposit-taking financial institutions enacted in July 2024. - Capital adequacy ratio for deposit-taking institutions enacted in the beginning of 2025. - NBC endorsed guidelines on D-SIBs and drafted/adopted a regulation on crypto-asset-related transactions by banks. - Draft regulation on early supervisory intervention (part of RBS) pending final adoption. - Draft amendments to reserve requirements proposed to allow banks to make use of reserve requirements included in the HQLA of the LCR in case of stress. - Other supervisory initiatives: - Drafting of a new regulation on Emergency Liquidity Assistance (ELA) following short-term TA recommendations. - First survey of digitalization in the banking sector conducted to identify financial and operational risks. - Consideration of stress testing enhancements for supervisory purposes and a forward-looking monitoring tool for reserve requirements. - Inclusion of NSFR in SREP indicators; NSFR calculated internally and incorporated in SREP scoring per TA recommendations. - Capacity building approach: Emphasis on structural regulatory reforms, hands-on work with teams and working groups, and learning by doing. ### Singapore Regional Training Institute (STI) — FY2025 highlights (JSA#: JPN207; IMF ID: ICD_APD_2022_01) - Objective: Build capacity of Asia-Pacific countries on macroeconomic and financial policy analysis through face-to-face, blended, and virtual training, workshops, peer-to-peer events, outreach, and TA. - Delivery and outputs in FY2025: - Conducted 31 courses at Singapore premises, 2 country-specific courses outside Singapore, and 5 training/peer-to-peer events with other RCDCs. - Over half of courses addressed macroeconomic, fiscal, financial, and monetary policy topics; remaining courses focused on statistical and legal topics. - All but two courses were conducted in-person; two courses offered in blended format. - Launched a blended course on Macroeconomic Policy Communications in January 2025 tailored for policymakers from low-income countries and fragile states. - Training effectiveness and metrics: - Average learning gains for course participants: 25 percentage points (objective set at 15 percentage points). - Average composite satisfaction score: 4.77 on a scale of 1-5 (benchmark 4.4). - TA expansion and coordination: - STI expanded TA on macroeconomic frameworks in the region; STI staff conducted twelve TA missions during FY2025. - Priority access to STI courses given to participants from countries with intensive IMF macro frameworks TA engagement. - STI Singapore Seminar Series included discussions on China’s Article IV consultation and Fiscal Frameworks in the Asia-Pacific region. ### Public Financial Management COVID-19 program — Madagascar and Comoros (JSA#: S_JPNCOV; IMF ID: FAD_IMF_2021_10) - Program extension in FY2025 focused on Madagascar and Comoros; Resident Advisor (RA) continued work from Antananarivo. - Madagascar: - Focus on budget execution and implementation of audit recommendations from early FY24. - RA supported rollout of commitment plans to all ministries in January 2025 (structural benchmark under the Fund ECF program). - IT module in FMIS introduced to prepare and update commitment plans. - Adoption of budgeting methods for multi-year public investment projects (commitment authorizations and payment appropriations). - First programming of investment projects using AE/CP methodology prepared for Public Works and Agriculture. - Design and adoption of a method to track climate-sensitive expenditure for the 2026 budget; first climate budget statement to be appended to the 2026 budget bill. - Full draft reform of the 2004 Organic Budget Law prepared and under discussion. - Continued close cooperation with donors (AFD / Expertise France, the EU, AfDB, WB). - Comoros: - RA supported timely production and methodological enrichment of the Table of Financial Operations of the State (TOFE). - New law on governance of SOEs adopted in August 2024 following extensive TA; a Directorate for SOE oversight created within the MoF with director appointed end April 2025. - RA contributed to roadmap preparation for improving fiscal transparency. ### Monetary policy support — Cambodia (JSA#: JPN422; IMF ID: MCM_KHM_2021_01) - Objective: Strengthen effectiveness of monetary and FX operations to support de-dollarization. - FY2025 achievements: - Introduction of an IRC in March 2024; NBC narrowed IRC width from 550 to 400 basis points in FY2025. - Enhancement of Reserve Requirement (RR) regime: share of RR subject to averaging increased from 50 to 70 percent, with plans for full averaging. - Improved liquidity forecasting: integration of statistical models for government deposits and banks’ settlement accounts related to the Bakong payment system. - Redesign of ELA framework: short-term TA mission provided recommendations and draft amendments to ELA regulation prepared. - Local currency promotion: TA reviewed de-dollarization strategy with recommendations to improve convenience of using KHR, reduce KHR liquidity management costs, and internalize USD transaction costs/risks. - Capacity building and sustainability: Ongoing staff training by the resident advisor; MCM TA handbooks provided theoretical and operational guidance. ### Customs administration program — closure and regional results (JSA#: JPN130; IMF ID: FAD_IMF_2021_03) - Program closed on October 31, 2024; aimed to enhance customs capacity in selected Asian and West African countries. - Asia outcomes (FY2025): - In-person CD in Cambodia, Maldives, Nepal, and Sri Lanka; remote CD to Cambodia and Mongolia. - Maldives enhanced post-clearance audit capacity; Nepal received first customs CD scoping mission since 2016. - Sri Lanka improved capacity in good governance and anti-corruption areas. - West Africa outcomes (FY2025): - In-person CD in Côte d’Ivoire and Guinea-Bissau; remote CD to Guinea-Bissau. - Côte d’Ivoire integrated an AI model into customs clearance IT system. - Guinea-Bissau progressed on a new Customs Code (awaiting parliamentary approval) and an electronic training platform scheduled for July 2025. ### Strengthening debt management — Africa and Asia-Pacific programs (JSA#: JPN421; IMF ID: MCM_AFR_2021_02 and JSA#: JPN420; IMF ID: MCM_APD_2021_01) - Africa (AFW program) — FY2025 deliverables: - Proposed institutional framework and time-bound action plan for public debt management in Guinea. - Manual of procedures for Benin adopted via Ministerial decree. - Guinea-Bissau published its first-ever debt management strategy in February 2025. - Capacity building in Benin and Senegal for debt management strategy formulation; Benin published a new DMS alongside 2025 budget documents. - Extension of Mauritania’s yield curve through issuance of 3-, 4-, and 5-year bonds. - Training on Sovereign ESG debt-for-development swaps characteristics and issuance process. - Expanded staff capacity on LIC-DSF-CPBBS analytical tool in Côte d’Ivoire and Senegal. - Asia-Pacific (PFTAC program) — FY2025 deliverables: - Improved debt reporting and institutional arrangements in Palau and Kiribati; Palau established a debt management office via Executive Order. - Assisted Solomon Islands and Vanuatu to prepare Debt Management Strategies; provided follow-up support for Vanuatu after reclassification as high risk of debt distress and late-2024 earthquake. - Organized regional workshop on Local Currency Bond Markets and bilateral diagnostic mission to PNG resulting in support to prepare a Quarterly Issuance Calendar (QIC) and auction announcements. - Regional workshops on LIC DSA exposure and an MTDS Training for Trainers workshop to strengthen regional trainer capacity. - Ongoing engagement with WB and ADB for synergies. ### CDOT — Monetary and FX operations support across countries (JSA#: JPN414; IMF ID: MCM_APD_2018_01) - Program provides CD via resident advisor to central banks of Cambodia, Lao PDR, and Vietnam; CD to Myanmar paused. - Cambodia achievements (with MCM support): symmetric interest rate corridor, platform for KHR interbank money market, approved full averaging of RRs in KHR soon to be implemented, introduction of 7-day LPCO and overnight MLF, policy (reference) rate, short-term liquidity forecasting framework, daily interbank transaction data collection, market-based official exchange rate mechanism. - Lao PDR achievements: introduction of a 7-day BOL bill at the policy rate, issuance of 3- and 6-month BOL bills to banks, reduction in RR maintenance composition in Kip from 70 percent to 10 percent, development of liquidity forecasting model for Currency in Circulation, and initiation of interbank market data collection; combined reforms contributed to exchange rate appreciation and inflation reduction to single digit in May 2025. - Vietnam: SBV focused on streamlining monetary operations; requested FX reserve management training for FY26. - Myanmar: CD activities paused since February 2021; advisor maintains contact for fact-finding. - Regional peer-learning: five regional CDOT-SARTTAC courses delivered between December 2, 2024 and April 21, 2025 on topics including Monetary Policy Implementation, Central Bank Policy Communications, Liquidity Forecasting, Emergency Liquidity Assistance, and FX Operations. --- _Source: https://www.imf.org/-/media/files/capacity-developement/jsa-annual-reports/jsa2025.pdf_