Islamic State of Afghanistan: Rebuilding a Macroeconomic Framework for Reconstruction and Growth

IMF Staff Country Reports, September 21, 2003

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Canonical URL: Islamic State of Afghanistan: Rebuilding a Macroeconomic Framework for Reconstruction and Growth

The study documents economic developments and achievements in Afghanistan following regime change.
It examines the role of the IMF in the country’s economic recovery.
The report highlights a strong economic recovery and the formulation and implementation of the government’s budgetary policy.
Progress made in rebuilding fiscal institutions is described in detail.
The study provides an overview of challenges and issues faced by the authorities in the area of monetary and exchange rate policy.
The authorities decided that the primary objective of monetary policy should be to achieve and maintain price stability and thus to restore confidence in the national currency.

Rebuild fiscal institutions to strengthen budgetary planning and implementation.
Continue implementing the government’s budgetary policy to consolidate recovery gains.
Prioritize monetary policy aimed at price stability to restore confidence in the national currency.
Address monetary and exchange rate policy challenges to support broader macroeconomic stability.

Subjects: Financial institutions, Foreign exchange, International organization, International trade, Monetary policy, Money, Public financial management (PFM)
Keywords: balance of payments, banking arrangement, Budget planning and preparation, Central Asia, Commercial banks, Currencies, Currency reform, donor government, Europe, Exchange rates, Exports, Global, implementation capacity, Middle East, operating budget, state intervention, Taliban regime, U.S. dollar