Islamic Republic of Afghanistan: Staff-Monitored Program

IMF Staff Country Reports, June 2, 2015

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

Support authorities’ reform agenda through a monitoring and engagement framework.
Address immediate fiscal vulnerabilities.
Address immediate banking vulnerabilities.
Facilitate sustained donor support via strengthened engagement with the international community.
Preserve macroeconomic buffers.
Maintain low inflation.
Maintain competitiveness.
Lay the basis for high and inclusive growth.
Mobilize domestic budget revenue to finance projected expenditure.
Rebuild the treasury’s cash balance.

Fiscal policy: mobilize domestic budget revenue; finance projected expenditure; rebuild the treasury’s cash balance.
Banking sector: address immediate banking vulnerabilities (specific measures not detailed on this page).
External engagement: facilitate international community engagement to sustain donor support.
Macro stability: preserve buffers, maintain low inflation, and maintain competitiveness.
Growth strategy: create conditions conducive to high and inclusive growth.