KABUL: Afghanistan and International Monetary Fund (IMF) agreed to boost tax revenue for strong economy.
The agreement does not entail financial assistance but shows that officials in Kabul and the IMF are on the same page over targeted policy changes, from better control of the budget to stronger bank supervision.
Afghanistan’s government relies heavily on foreign donors and an IMF official said the plans aim to improve economic stability and “facilitate international donor support.”
“Substantial grant financing from donors will be needed over the medium term to finance Afghanistan’s development and security needs,” Paul Ross, who led the IMF’s mission to Kabul, said in a statement.
Many Afghan institutions have struggled over the last year amid a months-long election crisis and uncertainty over whether the withdrawal of most foreign combat troops will lead to more violence and territorial gains by the Taliban.
