SIGAR

ECONOMIC AND SOCIAL DEVELOPMENT
quarter, but a joint work plan was to be finalized by OTA leadership and
Minister of Finance Hakimi in December 2016.
• Economic crimes: developing the capacity and effectiveness of
Afghanistan’s financial-intelligence unit and evaluating the central
bank’s capability to supervise money-service providers for compliance
with measures against money laundering and terror financing. An initial
assessment mission took place in March 2015, but technical assistance
has not yet begun. OTA plans on-site evaluations of these Afghan
entities and subsequent assistance to strengthen analytic capacities,
standard operating procedures, and outreach to stakeholders.
• Banking: electronic reporting and risk management, and state-bank
restructuring (this assistance can be provided from the U.S. Embassy-
Kabul and remotely). The assessment mission of September 2015 has
not yet been followed by technical assistance.
• Revenue: collaborating with the new customs and tax academy in
curriculum design, course delivery, and supplying course materials. An
assessment mission took place in March 2016; technical assistance has
not yet begun.
OTA has carried out six program-assessment missions to Afghanistan, but has been unable
to conduct any new missions since March 2016 due to security concerns. OTA assistance to
the MOF since then has been carried out remotely. Treasury reported that security conditions
continue to be a major constraint on establishing a more sustained presence in Afghanistan.
However, once security conditions in Afghanistan allow OTA to reengage in-country, Treasury said
the ultimate effectiveness of their efforts will largely depend on a strong and sustained political
commitment to reform by those Afghan government entities responsible for public financial
management, financial-sector strength, and oversight.
Source: Treasury, response to SIGAR data calls, 4/5/2016, 6/29/2016, 9/27/2016, and 12/30/2016.
Afghanistan Public Financial Management Assistance
USAID’s three-year, $22 million, Afghanistan Public Financial Management
(APFM) program is the United States’ principal off-budget effort to help
strengthen the Afghan government’s ability to generate and collect domestic
revenue, manage its budget, and become more fiscally sustainable.
The program aims to build the government’s capacity for forecasting
revenue, increasing payment compliance, collection, and transfers to the
treasury, as well as budget planning, execution, monitoring, reporting,
and coordination. 650
This quarter, APFM provided training to Afghanistan’s revenue department
in tax-dispute resolution, and to the MOF budget directorate in
government-finance statistics and classification of government functions.
APFM began a quantitative assessment of the socioeconomic impact of
proposed amendments to the income-tax law, and continued its efforts to
REPORT TO THE UNITED STATES CONGRESS I JANUARY 30, 2017
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