1 ANDS A NNUAL PROGRESSIVE EPORT 1389old.moec.gov.af/Content/files/ANDS Annual Progressive Report...

ANDS ANNUAL PROGRESSIVE REPORT 1389 1


Islamic Republic of Afghanistan

Ministry of Economy

We can make it, slowly, but steadily!

ANDS Annual

Progressive Report

1389

General Directorate of Policy, ANDS Monitoring & Evaluation


ANDS ANNUAL PROGRESSIVE REPORT 1389 I

PREFACE

Afghanistan National Development Strategy (ANDS) serves as the country’s Poverty Reduction

Strategy Paper (PRSP). It consists of three pillars: Security, Governance and rule of law, and Socio –

economic development. The ANDS has been approved by HE President Hamed Karzai and the cabinet

of the Islamic Republic of Afghanistan in April, 2008. Upon approval by the president, the ANDS was

presented based on 15 years development goals and in the framework of Poverty Reduction Strategy

Paper to the World Bank (WB), the International Monetary Fund (IMF), and the international

community and endorsed in June, 2008.

In order to successfully implement the Afghanistan National Development Strategy, the government of

Afghanistan has taken crucial steps after the Paris Conference in 2008. Line ministries, other

governmental institutions and donor agencies are contributing jointly to implement projects and

programs linked to ANDS with remarkable outcomes as reflected by the first annual report of ANDS

namely “Transition from Planning to Practice” (2009). That report was jointly prepared by the Ministry

of Economy (MoEc) and the Ministry of Finance (MoF) in 2009. This is the second report summarizing

the progress of the ANDS implementation.

The life time of the current ANDS is for five years, of which 3 years of its implementation has been

passed and we are left with 2 remained years. This makes us to prepare ourselves mentally to develop

our next 5 years development plan based on our lessons learnt.

The MoEc was given the responsibility to monitor and evaluate the implementation of the ANDS by

indicators and milestones. MoEc is the main coordination body for social and economic policies and is

to analyze data and progress measured by indicators provided by line ministries and the Central

Statistics Organization (CSO). Based on its findings it is mandated to provide recommendations at

sector- and ministry-levels. To this end, the MoEc develops and applies methods and effective

monitoring guidelines, and produces reports on ANDS progress that is submitted to the cabinet.

The ANDS has many different dimensions and topics. We have not yet created full capacities to

implement and monitor all projects and programs at outcome level. That needs support and more time.

During the Kabul Conference 2010, the cluster approach and the national priority programs were

presented, which may cause even more complications than the current ANDS result based monitoring

approach. As a consequence, we need to review and update our monitoring and evaluation tools and

instruments to capture sound monitoring methodology for both mechanisms. Our next report will have a

different format and will apply different methods.

This report has been prepared based on narrative methods, general observations, interviews, field

monitoring and information received from key line ministries and international institutions. Though, the

results may not precisely reflect the reality, but a huge number of the activities reveal a good number of

results including the level of accelerated GDP growth rate, income per capita and other indexes.

In Chapter 1 of this report we shortly briefed the key findings of the ANDS progress in the form of key

messages.

In Chapter 2 the macroeconomic indicators and trends have been summarized. We compared our own

development with some neighboring countries to see where we stand in the inter-regional comparison.

We further discuss key indicators such as GDP, GPD growth rate, GDP per capita, inflation, exchange

ANDS ANNUAL PROGRESSIVE REPORT 1389 II

rate, trade balance, debts, unemployment, fiscal trends and external supports and poverty status of the

country.

In Chapter 3 we describe the main achievements by topics and line Ministries. However, since the

outcome-oriented approach was only introduced in 2080, most of the ministries and the Central

Statistical Organization (CSO) are still concentrating to build their own capacities to adjust their

monitoring and reporting systems. In addition, human behavior change is happening quite slowly in all

countries and Afghanistan is not exception of this general tendency. In the future, the required fine-

tuned statistical data should be provided by the Central Statistics Organization to be analyzed by the

MOEC.

Despite remarkable progress in ANDS implementation in various areas and outcomes during the

reporting period, there have been sort of activities which could not match the expected outcome

properly. More prioritization and special attention is needed.

ANDS ANNUAL PROGRESSIVE REPORT 1389 III

ACKNOWLEDGEMENT

This ANDS implementation report is the result of a collective effort led by the Minister of Economy

(MoEc). It will allow the government to review the past and learn for the future.

We thank the Monitoring and Evaluation Team for the great contribution to this report. The core team

led by Mr. Mohammad Ismail Rahimi, DG of Policy and ANDS M&E, included Mr. Fardin Sediqi,

Director ANDS Monitoring Methodology, and Mr. Nabi Sroosh, ANDS Monitoring Methodology

Manager, at the MoEc.Prof. Nazir Ahmad Shahidi, technical deputy, Diploma Eng. Shir Mohammad

Jamizada, administrative deputy, and all sectoral directors of MoEc significantly contributed to this

report. The team has received some technical support from GIZ and we are looking forward to deepen

our partnership in the future. The authors of this report are also grateful to all line ministries, especially

their policy and planning departments, and various departments of the MoEc for their contribution to

this report.

We thank the International Community for great and ongoing support to reconstruction and stabilization

of Afghanistan.

This ANDS monitoring and evaluation report may help the government to identify strengths and

weaknesses and transform weaknesses into strengths soon. The main aim is the transition from the

“dependency status” to the time when the government will take over the overall responsibility for its

own development and future.

ANDS ANNUAL PROGRESSIVE REPORT 1389 IV

ANDS ANNUAL PROGRESSIVE REPORT 1389 V

Contents PREFACE .................................................................................................................................................. I

ACKNOWLEDGEMENT ...................................................................................................................... III

ABBREVIATIONS ................................................................................................................................ VII

FIGURES ................................................................................................................................................ IX

Part One: EXECUTIVE SUMMARY: ...................................................................................................... 1

I. 1. Security, governance and rule of law ............................................................................................. 1

1.2. Socio-Economic Development ....................................................................................................... 2

Part Two: Overall Economic and Social Situation: ................................................................................... 6

2.1. Macroeconomic Trends: ................................................................................................................. 6

2.1.1. GDP Growth rate ..................................................................................................................... 6

2.1.2. Composition of GDP ............................................................................................................... 8

2.1.3. GDP per Capita ....................................................................................................................... 8

2.1.4. Inflation ................................................................................................................................... 9

2.1.5. Trade and Trade Agreements ................................................................................................ 10

2.1.6. Exchange Rate and Debts ...................................................................................................... 11

2.1.7. Employment .......................................................................................................................... 11

2.1.8. Budget, fiscal trends and external support ............................................................................ 12

2.1.9. Donors Contribution to Security and Development .............................................................. 15

2.2 Poverty status and its distribution at region level: ......................................................................... 18

Part Three: Sectors Key Achievements: .................................................................................................. 22

3.1. Security......................................................................................................................................... 22

3.1.1. Ministry of Defense: .............................................................................................................. 22

3.1.2. Ministry of Interior: ............................................................................................................... 23

3.2. Governance, Rule of law and Human Rights ............................................................................... 23

3.2.1. Governance:........................................................................................................................... 24

3.2.2.Public Administration Services: ............................................................................................. 24

3.2.3. Human Rights: ....................................................................................................................... 25

3.2.4.Justice and Rule of Law: ........................................................................................................ 25

3.2.5.Religious Affairs: ................................................................................................................... 26

3.3. Socio Economic Development ..................................................................................................... 26

3.3.1. Education Sector.................................................................................................................... 26

3.3.2. Health Sector ......................................................................................................................... 28

ANDS ANNUAL PROGRESSIVE REPORT 1389 VI

3.3.2. Agriculture and Rural Development ..................................................................................... 30

3.3.4. Social Protection: .................................................................................................................. 32

3.3.5. Infrastructure and Natural Resources Sector ......................................................................... 34

3.3.5.1. Roads and Transportation ....................................................................................................... 34

3.3.5.2. Mines Sector ........................................................................................................................... 36

3.3.5.3. Communication and Information Technology ....................................................................... 37

3.3.5.4. Energy and Water ................................................................................................................... 39

3.3.5.5. Urban Development: .............................................................................................................. 41

3.3.6. Private Sector Development .................................................................................................. 42

Part Four: Cross Cutting Issues: .............................................................................................................. 44

4.1. Gender .......................................................................................................................................... 44

4.2. Environment ................................................................................................................................. 44

4.3. Anti-Corruption: ........................................................................................................................... 44

4.4. Counter Narcotic: ......................................................................................................................... 45

Part Five: Challenges and Recommendations: ........................................................................................ 46

5.1. Challenges .................................................................................................................................... 46

5.2. Recommendations: ....................................................................................................................... 49

REFERENCES ........................................................................................................................................ 51

ANDS ANNUAL PROGRESSIVE REPORT 1389 VII

ABBREVIATIONS AC Anti-Corruption

Afs Afghani

ALA Afghanistan Land Authority

ALMA Afghanistan Land Management Authority

ANA Afghanistan National Army

ANDMA Afghanistan National Disaster Management Authority

ANDS Afghanistan National Development Strategy

ANP Afghan National Police

ANSF Afghan National Security Forces

APRP Afghanistan Peace and Reintegration Program

APTA Afghanistan Pakistan Transit Agreement

Arazi Afghanistan Land Authority

BHC / SHC Basic Health Center / Sub-Health Center

BPHS Basic Physical Health Services

CDB Core Development Budget

CDCs Community Development Committee

CDP Community Development Plan

CIMIC Civil Military Cooperation

COB Core Operating Budget

CPI Consumer Price Index

CSO Central Statistics Organization

DATC Drug Addicted Treatment Center

DCR Development Cooperation Report

EITI Extractive Industries Transparency Initiative

EP External Debt

FDI Foreign Direct Investment

FI Foreign Investment

FP Fiscal Policy

FR / TB Foreign Trade / Trade Balance

GDP Gross Domestic Product

GMU Grand Management Unit

GNP Gross National Product

GTZ German Technical Cooperation

HIPIC Heavily Indebted Poor Countries

HIPIC Heavily Indebted Poor Countries

IARCSC Independent Administrative Reform and Civil Service Commission

ICAO International Civil Aviation Organization

ICT Information and Communication Technology

IKC International Kabul Conference

IMF International Monetary Fund

ISAF International Security Assistance Force

LB labour Force

LF Logical Frameworks

LM Labour Market

LR Literacy Rate

MAIL Ministry of Agricultural, Irrigation and Livestock

MCP Management Capacity Program

ME Market Economy

MfR Managing for Results

MoB Mobile Clinics

MoCIT Ministry of Communication and Information Technology

ANDS ANNUAL PROGRESSIVE REPORT 1389 VIII

MoD Ministry of Defense

MoE Ministry of Education

MoEc Ministry of Economy

MoEW Ministry of Energy and Water

MoF Ministry of Finance

MoHE Ministry of Higher Education

MoIC Ministry of Information and Culture

MolSAMD Ministry of labour, Social Affairs, Martyrs and Disabled

MoPH Ministry of Public Health

MoPW Ministry of Public Works

MoRR Ministry of Refugees and Returnees

MoTCA Ministry of Transport and Civil Aviation

MoUD Ministry of Urban Development

MOUs Memorandum of Understanding

MP Monetary Policy

MRRD Ministry of Rural Rehabilitation Development

NA National Assembly

NAPWA National Action Plan for Women in Afghanistan

NATO North Athlentic Treaty Organization

NGOs Non-Governmental Organizations

NH / SH National Hospital / Special Hospital

NI National Income

NRAP National Rural Access Program

NRVA National Risk and Vulnerability Assessment

NSDP National Skills Development Program

NSF National Security Forum

NSP National Solidarity Program

OECD Organization for Economic Cooperation and Development

PAR Public Administration Reform

PHC Public Health Center

PPP Purchasing Power Parity

PRSP Poverty Reduction Strategy Paper

PRSP Poverty Reduction Strategy Paper

PRT Provincial Reconstruction Teams

PRT Provincial Reconstruction Teams

PSD Private Sector Development

PSI Public Service Institutions

QIP Quick Impact Projects

RAS Religious Affairs Sector

RH / PH Regional Hospital / Provincial Hospital

RIMU Reform Implementation & Management Unit (RIMU)

SC Supreme Court

SME Small and medium enterprises

SWAPs Sector Wide Approches

T&T Tariff and Taxes

TAPI Turkmenistan-Afghanistan-Pakistan-India

TB Tabarculuses

TBC Tabarcoluse Center

TR Tax Revenue

UNCAC United Nations Convention against Corruption

UR Unemployment Rate

USD United States Dollar

WB World Bank

ANDS ANNUAL PROGRESSIVE REPORT 1389 IX

FIGURES

Figure 1: GDP in million US$ for Afghanistan and Neighboring Countries (1386-1389)

Figure 2: GDP Growth Rate (annual %)

Figure 3: GDP nominal growth rate;

Figure 4: Composition of GDP, 1385-1389

Figure 5: GDP per capita (Current US$), Afghanistan and

Neighboring Countries, 2005-2009

Figure 6: Inflation Rates (Consumer Prices Index), Afghanistan and


Figure 7: Afghanistan, Exports, Imports, Trade Balance in US$ million (1383-1389)

Figure 8: Estimated Unemployment Rate, Afghanistan and


Figure 9: Afghanistan, National Budget Summary, 1389, million Afs

Figure 10: Afghanistan, Revenue, Expenditures, and Grants (in millions of US$)

Figure 11: Afghanistan, Operating Budget by Sectors, 1389 (%)

Figure 12: ODA, Commitment and Disbursement, 2005-2010, US$ Billion

Figure 13: Distribution of external assistances by sectors in USD billion (2002-2010)

Figure 14: Distribution of External Assistance (ODA) by Provinces in US$ million and

poverty rate (in ‰), 2008

Figure 15: Poverty by Regions, 2007, %

Figure 16: Poverty Rate (%) and Education

Figure 17: Access to Selected Public Services by Poor Households (%)

Figure 18: Access of Poor and Non-Poor Households to Basic Services (%)

Figure 19: Poverty Rate and Student Enrollment Rate by Province

ANDS ANNUAL PROGRESSIVE REPORT 1389 X


Part One: EXECUTIVE SUMMARY:

KEY MESSAGES

This chapter provides the reader with an overview of the report's essential information and findings, in

some cases recommendations are given in the head line of the message. The format is designed for

readers who may do not wish to read the detailed content yet grasp the overall messages, issues and

recommendations. We have divided the three pillars of the ANDS in two parts: Security, governance

and rule of law and Socio-Economic Development.

I. 1. Security, governance and rule of law

Message 1: Security, governance, rule of law and development are interlinked and we are

moving forward slowly but steadily

During 1389:

There are positive signs of encouragement with Afghan National Security Forces taking on more

responsibility and in tandem steadily gaining strengthin numbers -from its original 70,000 to now

standing around 192,000. Afghan National Police (ANP) having also filliped as an institution and

expanded from 62,000 to 122,000. The national police recruited 91,194 and the national army

159,363 new personnel.

Based on the assessment of the Joint Afghan-NATO Transition Board the Government of

Afghanistan decided that the transition process can and will be started in July 2011. The

transition process will go on with all the support of the international community and is expected

to be completed by 2014. The government will be in the driver's seat, but the international

community is committed to support us technically and financially.

The Peace Jirga under the Peace and Reintegration Program (APRP) was held with over 1,600

representatives from an all-inclusive stratum of society (Provincial Councils’ Members,

Community Elders, Civil Society, Parliamentarians) across the country. The main outcome of

the peace Jirga was a communiqué of 16 articles. Based on this communiqué the high peace

council with 69 members was established to facilitate the peace process.

The parliamentary election washeld in the month of Sunbula 1389 and the new Parliament was

inaugurated in the month of Dalwa 1389. The new parliament has 249 members; 69(27.7%) of

them are women.

The local governance policy was endorsed by the cabinet, laws for sub-national offices,

assemblies, districtsandcommunity councils are drafted as well as provincial councils and

municipalities’ laws have been revised. A cabinet “sub-national planning and finance

committee” and an inter-ministerial committee for identification of villages’ administrative

borders have been established. The recruitment process of deputy governors and district

governors is more and more merit based.

MCP is a good initiative to attract high potential Afghan experts from the market and place

them in the government structure.

Based on national and international best practice of employment principles 13 public service

legislative documents have been prepared.

The Anti-Corruption laws were reviewed and adjusted according to UNCAC standards, an anti-

corruption strategy has been mainstreamed to all sector strategies, and based on article 154 of


the national constitution; the assets of 1,900 government senior officials have been registered

and publicized. A joint Monitoring and Evaluation Anti-Corruption committee of local and

international experts has been established.

1.2. Socio-Economic Development

At the macroeconomic front we have the best achievements since many years. The IMF “Regional

Economic Outlook” reports that the GDP growth rate was 21% in 1388, 8.2% in 1389 and it has been

projected to be 8% in 1390. The inflation rate is kept close to the average inflation rate of the region.

GDP per capita more than doubled during the last 5 years. Domestic revenues surpassed the

government's 7.4% target and accounted for 9.7 percent of GDP, but government revenues still provide

only 33% of the resources of the national budget. The education situation, access to electricity, potable

water and health services were greatly improved during the last year. However, despite the fact that

much has been achieved, we still have problems in monitoring and evaluating the impacts. We should

make monitoring and evaluation a priority for next year. It should be based on the expected results, the

given milestones and indicators including the indicators for the baseline and it should consider on- and

off-budget projects and results achieved by the NGOs.

Message 2: We have to increase our budget execution rate to gain more ownership of our

development strategy

According to Ministry of Finance, “Development Cooperation Report, 2010” covering the period of

2002 -2010, only 18% of external assistance has been spent through government treasury, while 82%

was spent and managed by donors themselves. Therefore, this ratio indicates very little ownership of

the government on the implementation of the ANDS and its success or failure. This will lead us to

inefficiency and will not bring us sustainability in the long run. This is why at the Kabul Conference it

was decided to bring the ratio from 18% to 50% by end of 2011.

At the same time, based on MoF and MoEc reports, the line ministries spent only 46% of their

development budgets in 1389. Therefore, implementation of the ANDS needs to improve our national

development budget management and expenditureas a result sustainability and consistency is improved,

especially by 2014, the time when the Government of Afghanistan is ready to take responsibility for all

the developments.

Message 3:More efforts needed to develop the private sector

Private sector development is essential for the long-term viability of the economy and state and is part

of the sectors of the ANDS. The private sector has great potential for growth, especially in the areas of

food production, mining, light manufacturing, construction, and services like information and

communication technology. During the last 10 years USD 6 billion were invested. Telecommunication

companies, airlines, banks and media weret he favored sectors. The private sector will provide more

jobs and revenue for the government and will allow us to move gradually towards more independence

from external support. However, it will take time until the private sector development will have a

tangible impact on the development of the country. So far we have not yet given high priority to the

private sector. We are slow in improving our investment climate. The Doing Business Survey 2011 of

the World Bank lists Afghanistan at rank 165 out of 183 countries, two ranks below the level of the

previous year. However, a new initiative was started in December, 2010, to implement reforms in five

key sectors to improve the regulatory climate for SMEs.


Message 4: Employment has been less considered by line ministries and budget entities:

36% of the population is living under the poverty line, while more than half of the population is very

close to the poverty line. A small shock could drop half of the population under the poverty line and

disturb social and political harmony and stability.

Finding a job is the best way to escape poverty. Currently new jobs are created mainly by off/ on

budget projects. But the labor market has not yet been developed; statistics or labor market analyses are

not available. This is due to accurate statistics not being collated and observed by relevant ministries.

Youth unemployment and unemployment of highly qualified people seems to be extremely high; the

education system does not qualify for the jobs in the markets.

Message 5: Infrastructure development is somehow on track

Energy

Despite considerable challenges and delays, the total number of electricity users increased from

279,949 in 1383 to 720,000 in 1389, which represents an impressive average annual growth rate of

17% over a period of six years.

The Mining sector

According to the recent geological survey of United States, Afghanistan’s untapped mineshavethe

potential value of more than USD 3 trillion. Most of these deposits are copper, cobalt, gold and metals

such as lithium. The survey also reveals that there are huge deposits of Niobium, rare earth elements

and gas and oil. These natural resources could substitute a major share of the current external support,

if it is well managed. A trust fund for mine sector revenue is under preparation, an anti-corruption

strategy for the Ministry of Mines has been developed. Afghanistan has become a candidate country

within the Extractive Industries Transparency Initiative (EITI), the global standard for improved

transparency in the oil, gas and mining sector.

The Communication and Information Technology

In 1389; US$ 114 million have been invested bringing up the total investment in the ITC sector to a

level of US$ 1.6 billion. The Ministry of Communication and Information Technology and private

companies have increased the number of towers by 17%, while notably, the number of digital and

mobile phone users have climbed up by 20.7% reaching 16.3 million users. The sector is creating jobs

for technicians, administrative staff, and field experts and personnel. Derivatives from this sector have

contributed USD 140 million to the government revenues during 1389.

The water sector is improving slowly but steadily

The regulative framework for the water sector was modernized. A new water law is enforced, new

regulations have been prepared to facilitate and direct our water establishments. 110 national

hydrologic stations have been installed at province level and are operational.

Infrastructure is improving. 700 water dams and canals have been constructed or rehabilitated. 142,234

hectares of land is being irrigated. Improvements have slowed down during 1389, however,

notwithstanding the lack of momentum many feasibility studies are under preparation to build new

water reservoirs/ dams to provide irrigation, electricity and control flood.

http://eiti.org/Afghanistan

http://eiti.org/countries/candidate


The roads

Given to the geo-strategic location of Afghanistan in the region; Afghanistan can turn to become an

important transit hub between south Asia and the central Asian states. 6100km of national and

provincial roads have been constructed. The feasibility study of 1,225 km of railways has been

conducted of which 75 km railways have been completed.

Message 6: Agriculture is improving, but should accelerate its pace

Production and productivity has been improved by a number of measures: the expansion of arable

areas, better quality of animal production and protection, a microfinance program that provides

subsidized loans to small farmers, and cold-storage facilities.

The natural resource management is taken seriously.Around one million seedlings have been planted,

100 hectares of tree nurseries have been created, 118 hectares of forests established and 800 hectares of

forests have been rehabilitated, 2721 kg medical seedsplantedand additional national parks have been

developed.

The Afghanistan Land Authority (ALA) was established and is preparing for leasing of 25 thousand

Jeribs of land to the private sector.

Message 7: Basic Package of Health Services expanded;

Health sector had significant progress in the expansion of basic health services; 87% of the population

is currently under the coverage of the basic physical health services (3% more than last year), of which

66% have access to health facilities within 2 hours walking distance and 57% within one hour walking

distance. The mentioned expansion is due to increase in the numbers of basic health facilities and

recruitment of skilled staff (mostly women) in the health units/centers. But, there is less progress in the

second and third health services (hospital services) except an increase in the academic hospitals. The

number of academic hospitals has increased from 20 to 25.

Message 8: The enrollment rate seen from the general national level is progressing very well,

but we should focus more on those provinces which have very low enrollment rates

The Education Sector has made remarkable achievements during 1389 to improve equal access to

quality education; marked by laudable increase in the student enrollment rate of14%.

As result of the hike mentioned, number of enrolled students has reached 7.4 million, of which 39% are

female students. According to the “Provincial Briefs” jointly produced by MoEc and WB based on “

2007/08 NRVA” data, the national average enrollment rate is 46.3%, but 4 provinces are worrisomely

far below the national average (Urozgan: 2.0%, Helmand: 4.0%, Zabul: 5.2% and Kandahar: 11%).

Three provinces (Dikundy68%, Badakhshan68% and Kabul 65.2 %) are far above average.

Message 9: ANDS implementation and NGOs

As the building of administrative capacities of the government at sub-national levels (especially district

and community levels) have not been extended to a required level, NGOs fill the gap in provision of

basic services and assistance. More than 1,537 NGOs (387international& 1,430 local) are now

registered in Afghanistan. The majority of them works as sub-contractors for various international

donors and as well as implementers of development budget projects. Monitoring and further

coordination of NGOs lead to better understanding toward implementation of projects and ANDS

monitoring and evaluation.


Message 10: Improve economic and political relations with neighboring countries to avoid

external shocks, high inflation rates and make best use of trade potentials and exports of

natural resources

Trade is an important pillar of GDP and relations with our neighbors are vital to a number of fields

such as security, stability of consumer prices and security of energy and food supply.

Last year (1389) we faced cross-border trade hurdles with both neighboring countries Iran and

Pakistan. As a consequence gasoline, diesel, transportation and food prices increased rapid and

dramatically.

Meanwhile, trade relation processes have started to improve the situation. In July 2010, Pakistan and

Afghanistan concluded the Afghanistan-Pakistan Transit Agreement (APTA). Applied it will enable

smooth trade relations and Afghanistan would benefit from reduced transport costs and faster delivery.

Under the new arrangement, Afghan trucks will be able to deliver goods directly to Pakistani

destinations and ports, and to travel across Pakistan. The process took longer than expected, but finally

the agreement was signed in June 2011.

In December 2010, the Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline agreementwas

signed. This project is demonstrable of inter-regional complementary economic cooperation; a

significant one by account, once in practical realization could serve as a capacity to the prosperity of

member countries and further harmonization of regional relations.


Part Two: Overall Economic and Social Situation:

2.1. Macroeconomic Trends:

2.1.1. GDP Growth rate

In our region Iran is by far the largest country in GDP followed by Pakistan having about 50% of the

size of Iran (1388). Compared to both countries Afghanistan, Turkmenistan, Tajikistan and even

Uzbekistan can be seen as economically small countries. However, as a single market they would

surpass the GDP of Pakistan. The ranking between the six countries did not change over the last five

years despite the fact that they realized different GDP growth rates over time (see Figure 1 and 2).

Figure 1: GDP in million US$ for Afghanistan and Neighboring Countries (1386-1389)

Source: data.worldbank.org/indicator/NY.GDP.MKTP.CD/countries

If we take a look at the GDP growth rates (real and nominal) of Afghanistan and compare that with our

neighboring countries we can see that our real GDP growth rates are good but fluctuating (see figure 2).

The nominal GDP growth rate shows a very positive trend (figure 3). It increased from USD 7.1 billion

in 2006 to USD15.6 Billion in 2010.

http://data.worldbank.org/indicator/NY.GDP.MKTP.CD/countries


Figure 2: Real GDP Growth Rate (annual %)

Figure 3: GDP nominal growth rate;

Source: IMF, Regional Economic Outlook, Middle East and Central Asia, Apr 2011, p.74.


2.1.2. Composition of GDP

Figure 4: Composition of GDP, 1385-1389(Millions of Afs, base 1381), 1385-1389

So far, the implementation of the ANDS has not yield change in the composition of GDP significantly

over the last 4 years. The service sector could benefit most from the rapid inflow of external support

and realized an annual growth rate of 12.6% (1385-1389)well above the GDP growth rate (10.6%) and

increased its share of GDP from 38% to 41% making the service sector the strongest sector of the

economy. Within the service sector the telecommunication sector was one of the most dynamic sub-

sectors. The industry sector realized a modest annual growth rate of 8.6 %( 1385-1389), the lowest of

the three large sectors. Industry continues being the smallest of the three large sectors. The average

annual growth rate of the agricultural sector was 9.6%. Thus, both sectors decreased their shares of

GDP. Industry went down from 25.5% (1385) to 23.7% (1389), agriculture from 33% (1385) to 32%

(1389).

2.1.3. GDP per Capita

The trend of GDP growth per capita is positive, however, the developmentis still quite modest. Figure 7

shows, that Afghanistan is still by far the poorest country in the region achieving only 9 percent of the

average standard of living of Iran, the wealthiest country in the region.


Figure 5: GDP per capita (Current US$), Afghanistan and Neighboring Countries, 2005-2009

Source: http://data.worldbank.org/indicator/DT.ODA.ODAT.GN.ZS/countries

2.1.4. Inflation

Figure 6: Inflation Rates (Consumer Prices Index), Afghanistan and Neighboring Countries,

1384-1389

Source: http://www.indexmundi.com/afghanistan/unemployment_rate.html

http://data.worldbank.org/indicator/DT.ODA.ODAT.GN.ZS/countries

http://www.indexmundi.com/afghanistan/unemployment_rate.html


Since 1385 inflation went up in the whole region and began to decrease again only when the

international economic and financial crisis started in 1388. External shocks had a strong influence on

our inflation rate. The floods in Pakistan constituted a natural disaster of huge dimensions. The floods

destroyed crops and livelihoods for millions of people and there was nothing left for export. We had to

identify new sources of imports. Finally we had to import food at much higher prices from various

alternative sources.

Further, in 1389 our neighboring countries blocked the cross-border trade several times. As a

consequence gasoline, diesel and food prices rose quickly. For a short period of time the transportation

and food prices increased by 50 percent according to international reports. At the end of the year we

finally saw an inflation rate of almost 14% (year on year).

2.1.5. Trade and Trade Agreements

Foreign trade is an important element of GDP, but trade statistics are not yet updated and do not fully

reflect the trade trends and pattern as a large share of trade is not reported. Our analysis may be

incomplete.

Figure 7: Exports, Imports and Trade Balance in US$ million (1383-1389)

Source: http://www.cso.gov.af/economics/services/trade.html

As Figure 7shows, exports and imports have been increasing almost steadily over time in absolute

figures, while GDP share from foreign trade is declining. According to the CSO “Statistical Year

Book”, in 1389 imports had increased significantly compare to 1388, while exports have decreased

slightly compare to 1388 and 1387.The trade balance was negative throughout the period of 1383 to

1389.In the future, we are hopeful that more and better traditional export items and mineral exports will

contribute to close the trade gap.

The composition of exports has slightly changed, but exports are still dominated by traditional export

items. Dry fruits and seeds have become the largest official Afghan exports with a share of half of the

total exports. The CSO reports that exports in carpets dropped from 60% to 17% of total exports. The

http://www.cso.gov.af/economics/services/trade.html


export of fresh fruits accounted for just 6%and dry fruits 45% and others (leather, spices, and medicinal

plants) 32%.

For a country rich in mineral resources but landlocked, intra-regional trade, regional cooperation and

regional integration are important tools to make best use of its resources and to fully benefit from

economic integration into the region and the world. However, in our region some states suffer from

internal conflicts and there is still mistrust between some of our neighbors. Thus, short term political

aspects often gain priority over long term economic interests of the region and regional cooperation

efforts move very slowly.

2.1.6. Exchange Rate and Debts

The nominal exchange rate continued experiencing a slight nominal appreciation. During the fiscal

year, value of Afghani to the US dollar appreciated from Afs 51 to Afs 45 by mid-March 2011. The

Afghani is a fully convertible currency. Citizens, donors and traders are making their payments in

Afghani. The Central Bank reports daily the exchange rates to all major currencies.

- Debts

In March, 2010, major Paris Club creditor nations canceled more than $1.6 billion in debt that

Afghanistan owed them. The debt relief came partly in response to Afghanistan's participation in a

program for Heavily Indebted Poor Countries (HIPIC).At the same time most of the creditors

voluntarily relieved Afghanistan’s debts. Afghanistan agreed in exchange to use the money it would

have spent on paying its debts on programs in line with the U.N. Millennium Development Goals and

poverty reduction. As a result of the Multilateral Debt Relief Initiative we brought the total external

debt stock down to a healthy level.

Current Debts ( in million Afs)

WB

AD

B

IDB

Sau

di d

e.

ban

k R

ussia

OP

IC

Fund

IMF

Bulg

aria

Kw

ait

Fund

Iran

Tota

l

deb

ts by

end

of

4th

qu

arter

of 1

389

8141

8,81

214,

4,82

327

85 2

485

888

,345

3788

1888

345

1883

245

7881

844

8781

,18

85

104,6

45.4

0

Source: MoF

2.1.7. Employment

Employment is a key issue in a market economy. The citizens and especially the young generation

need reliable labor market data for their professional orientation and education to qualify for jobs later

in their lives. For many, one way out is to work legally or illegally abroad. Unemployment is also

linked to security of the country. The unemployment rate seems to beextremely high for young citizens

and even highly qualified university graduates. This by implication carries negative socio-political

consequences; in some cases posing direct security hazards in areas of insurgency activity, and

disenchantment amongst the young and qualified.


Figure 8: Estimated Unemployment Rate, Afghanistan and Neighboring Countries, 2005-2010

- Percent of the Labor force that is without jobs. Substantial underemployment may be noted -

Source: http://www.indexmundi.com/afghanistan/unemployment_rate.html

We also observe a mismatch between qualification available and qualification needed by private sector

companies and government institutions alike. Many investors prefer to contract foreign workers

compared to training Afghan staff. Our education system was not yet reformed to qualify for jobs

offered in the market.

When preparing this report we were not able to find reliable labor market data or labor market studies

providing reliable information such as wage levels, employment by age, sex, education level or

unemployment rates by provinces.

A rather general trend can be derived from Figure 8. Despite impressive GDP growth rates the

unemployment rate is still at a very high level and by far the highest in the region. However, in 2010,

for the first time the trend was slightly positivemainly due to the huge number of small income

generating projects financed by the national budget and donors, but the high rate of unemployment

continues to be a serious threat to social and political stability of the country.

We should vigorously and as quickly as possible strengthen our capacities to design, finance and

manage more small income generating projects at province, district and village levels to improve the

situation in the short term. We should also identify opportunities and provide funds to help private

sector companies to better train their staff. In the midterm we need to adjust our labor market statistics

to allow us to better analyze weaknesses and shortcomings of the labor markets and the education

system. Investment in a modern education system and short term training will increase labor

productivity and thus will have a positive impact on the wage level.

2.1.8. Budget, fiscal trends and external support

Normally the National Budget is the main instrument for financing the implementation of the

Afghanistan National Development Strategy (ANDS). In Afghanistan, however, in addition to budget

support off-budget projects are also essential to implement our strategy.

http://www.indexmundi.com/afghanistan/unemployment_rate.html


Figure 9: Afghanistan, National Budget Summary, 1389, million Afs

Source: Islamic Republic of Afghanistan, National Budget,1389, p. 75

In 1389 the Total National Budget was Afs 215,498m. Domestic revenue alone was Afs 71,120m. It

was not sufficient to finance the total national budget. It is not even enough to finance either the

Operating Budget of Afs 116,216m (such as wages and recurrent cost) or the Core Development

Budget of Afs 99,230m. External budget support (grants) was badly needed. Two thirds of the total

national budget is given as grants. As our spending capacities are still limited and as external supporters

prefer to manage and finance our joint projects alone, we enjoy a huge amount of off-budget support,

which is approximately four times the support given directly to the budget.

However, behind these figures we observe a number of success stories when we take a closer look at

the individual components of the national budget over the last couple of years.

1385 to 1390 we increased our spending capacity dramatically. The total core expenditure almost

doubled from 1385 to 1387 (2 years) and doubled again from 1387 to 1390 (3 years). Thus, the average

annual growth rate of our spending capacity is more than 32% during the period 1385 to 1390.

Figure 10: Revenue, Expenditures, and Grants (in millions of US$)

Source: MoF

0

500

1000

1500

2000

2500

3000

3500

4000

4500

5000

1385 1386 1387 1388 1389 1390

Domestic Revenue

Total Core Expenditure

Donor Grants


Due to improved tax administration, domestic revenue increased steadily and more than tripled from

1385 to 1390. The average annual growth rate is 28.6%, only slightly below the annual expenditure

growth rate (32%). However, we should do as good as other least developed countries in Asia. The

ratio of central government revenues to GDP is a widely accepted indicator to compare the

effectiveness of revenue generation between countries. While our revenue to GDP ratio has been 8 to

9% for the last couple of years, countries like Nepal or Sri Lanka managed to have revenue to GDP

ratio around 15%.

Our deficit was financed by grants. As can be seen from Figure 10 the grants increased modestly

during the period 1385 to 1387, but then doubled from 1389 to 1390. Much of this additional support

was spent on development expenditure, while the operational expenditure went up more steadily.

However, our budget is still small compared to off-budget support.

Figure 11: Afghanistan, Operating Budget by Sectors, 1389 (%)

Source: MoF, National Budget 1389.

Figure 11reflects our priorities in spending the operating budget: Security, Education Governance, Rule

of Law and Human Rights have the largest shares. In 1389 we spent approximately 36% of the

operating budget for security indicating that security is our top priority. Education is our second pillar

with a share of approximately 17%. Governance, Rule of Law and Human Rights comes next with a

share of 6.8%.

The Contingency Fund with a share of almost 32% allows us to react flexible and quickly on upcoming

challenges and needs. High cost for security prevents us from investing more in our long term

development such as infrastructure, health, natural resources, agriculture and rural development, and

social protection. However, for the time being off-budget projects focus on those sectors.

Off-budget projects impact dominantly on our development and one of the outcomes of the

International Kabul-Conference in July 2010 is the promise that within two years (by 1392) at least

50% of the external support will be channeled through our core budget. As we increased our spending

capacities over the years considerably and as we continue doing so we will be able to absorb the

expected budget support.


2.1.9. Donors Contribution to Security and Development

As discussed above, external support has been driving the development in Afghanistan. During the

period from 2002 to 2013 the international community has pledged a total of US$ 90 billion in aid

(ODA) for Afghanistan through a series of pledging conference, and supplementary means. From the

total ODA pledged, US$ 69 billion (77%) formally committed was to be disbursed from 2002 to 2010.

Of the total ODA committed, US$ 57 billion (83%) were disbursed to finance a wide range of

programs and projects to support efforts to improve security and development. Thus, donors pledge to

disbursement rate was 63%. The gap between disbursement and commitment has been rapidly

increasing since 2007 (Figure 12). Security deterioration is considered to be a major obstacle

hampering project implementation across the country.

Figure 12: ODA, Commitment and Disbursement, 2005-2010, US$ Billion

Source: DCR 2010, MoF,

Support is delivered either as off-budget or on-budget. Off-budget support consists of projects which

are financed and managed by donors with little government involvement. On-budget support comes as

a direct support to the national budget or is provided and administered through Trust Funds and

bilateral funds. Most on-budget programs are designed, implemented and monitored by government

institutions. The Ministry of Finance reports that for the period from 2002 to 2010 the on-budget to off-

budget ratio was 18:82.

With respect to sectoral distribution of external assistance (2002-2010), security was given a share of

51% and 49% was given to development in various sectors. From 2002 to 2010 total external

development assistance was US$ 28.14 billion. Figure 13 shows the sectoral distribution.


Figure 13: Distribution of external assistances by sectors in USD billion (2002-2010)

Source: Ministry of Finance

Distribution of External Support to Provinces

The external support is quite unevenly distributed between provinces and citizens (Figure 14). Four

provinces (Helmand, Kandahar, Kabul, and Nangarhar) with a population share of 29%, and poverty

rates well below the national average, received 45% of the external support (2002-2010), whereas seven

provinces ( Sar-e-pul, Daykundi, Badghis, Takhar, Ghor, Faryab, and Samangan)with a population

share of 15.5% received just 3.6% of external support. Nine provinces having a poverty rate above 50%

(Paktika, Logar, Laghman,Paktya, Bamyan, Wardak, Badakshan, Balkh and Samangan), with a

population share of 21% - they received a fair share of less than 20% of external support but not more.

Figure 14: Distribution of External Assistance (ODA) by Provinces1in US$ million and

poverty rate (in ‰), 2008

1 Calculated project costs. Multiple Provinces Projects are not included. Multiple Provinces Projects include projects or

programs that have nation-wide impact such as the NSP, National Rural Access Program and other big infrastructure projects

in the area of irrigation, energy and transport.

Sources: Ministry of Finance, Development Cooperation Report 2010, p.96, NRVA 2010, own calculations.


Note: For better visibility the poverty rate is not given in percent, but in tenths of percent (per mile).

Support per capita is also fluctuating widely. During 2002 to 2010, Panjshir with a population of

100.000 received more than 2000per capita;six provinces (Nuristan, Helmand, Kunar, Uruzgan,

Paktika and Kandahar) received more than 1000 per capita; eight provinces)Jawzjan, Sari Pul,

Daykundi, Badghis, Takhar, Ghor, Faryab and Samangan) were not able to receive more than US$

200per capita. We may have to develop a set of criteria for an appropriate distribution of External

Support; this must obviously be in consideration of the security-specific province where development

is directly linked to security and well-being of the rest of the country, however, there must also be a

strategic rationale for the proportion of support injected to safer provinces where there is potential for

absorption and development.

External Assistance to Security and Provincial Reconstruction

External Assistance to the security sector is focused on building the capacities of the Afghan National

Security Forces (ANSF). In addition, security funds are also used for small impact oriented

reconstruction projects at sub-national level as an element of counter-insurgency activities. After 2004,

more and more donor countries with military presence began providing development funding through

Provincial Reconstruction Teams (PRT) “to win the hearts and minds” of the citizens, and meet the

development needs of the provinces directly without using national funds and quite often without

considering national priorities. Currently, there are 27 operational PRTs, comprised of 14 different

nations. PRTs implement their development projects through their reconstruction groups such as Civil

Military Cooperation (CIMIC) and Quick Impact Project (QIP).Total PRTs contribution towards

reconstruction and development is approximately US$ 900 million.

In most cases, the security spending, including the contribution of military agencies for reconstruction

and development, are not appropriately reported to the government or even their relevant countries’

diplomatic missions or development agencies because the funding for the military assistance comes

from the donor country’s Ministry of Defense, while the development funds come through the

countries’ Ministry of Foreign Affairs or development agencies. Despite the great contribution the

military aid has made to the reconstruction process, their modality of delivery and spending has been

criticized for a variety of reasons. Aid provided by these agencies are essentially “militarized”, and

quite often said to serve military or political purposes of the aid giving country. Assistance provided

through PRTs is not bound to the OECD-principles of external assistance.

Analysis of aid effectiveness

As Afghanistan is highly dependent on external support, quality of aid is essential to overcome our

current situation. However, aid delivery was not always according to agreed international principles

and not always in the expected quality. The Joint Evaluation of the Paris Declaration Report (2010)

listsfour key points:

- Pledges, commitments and disbursements

Weak long term planning and a low budget execution rate is partly a result of discrepancies in pledges,

commitments and disbursements of financial support by donors.

- Mutual Accountability and Alignment

82% of the ODA disbursed from 2002-2010 by-passed the Afghan government’s budget process. These

funds were used to finance programs/projects which run parallel to those of the government. These

funds were administered directly by the implementing agencies of our development partners without

any accountability to the Afghan government. Such practice of tied and prescriptive donor driven aid


violates the Paris principle of ownership of development programs by the government and sometimes

alignment of donor programs with government priorities. ODA delivery by-passing government budget

channels results in missed opportunity of the Afghan government to learn by doing and thereby develop

the required capacity to design, implement, monitor and report on development programs.

- Program Based Approaches and Sector Wide Approaches (SWAPs)

In many sectors or regions donor coordination is not yet satisfactory and there are not many harmonized

actions. Program Based Approaches (PBAs) and Sector Wide Approaches (SWAPs) have hardly gained

grounds. The result is fragmentation of aid; duplication of programs in the absence of well shared

information amongst donors; and unbalanced and inequitable development resulting from over aiding

certain sectors or geographic areas and the presence of too many donors while other areas, with similar

needs, are left with little investment.

- Managing for Development Results

Many of our development partners give accountability little attention. The government has limited

knowledge about one third of the total external assistance investment in the country since 2001, as

many donors do not disclose information on project activities and results while others do not have

information readily available to handover to the government. Without proper information sharing the

ministries are not able to manage for development results.

2.2 Poverty status and its distribution at region level:

Poverty reduction is one of the main objectives of the Afghanistan National Development Strategy as it

also stands for our Poverty Reduction Strategy Paper. Very recently, MoEc with assistance of the

World Bank developed the poverty profile of the country based on the NRVA 2007/08. This profile

(Poverty Status in Afghanistan) appraises the magnitude of poverty and its distribution across regions

and provides information on the characteristics and correlates of poverty in Afghanistan.

The poverty profile revealed that 36% of the population is living under the poverty line, while more

than half of the population is very close to the poverty line as it is shown in the below Pens Parade

Figure. With this situation, a very small negative shock could drop half of the population under poverty

line.

Poverty in Afghanistan varies dramatically by regions because of different terrains, climate, agriculture

zones, altitudes and latitudes of the areas.


Poverty in Afghanistan is highly correlated with seasonality. There is a huge difference in economic

wellbeing of households in different seasons due to agricultural cycles, extreme temperature

fluctuations (droughts and sever winter) affecting livelihoods of exposed communities and furthermore

the sever winters and heavily snow blocks roads especially in high mountain areas. Naturally, people´s

consumption is high in the summer and fall (harvest seasons) and relatively low in the winter and

spring.

Demographic factors are also strongly correlated with poverty. Overall average household size in

Afghanistan is 7.3 persons and poorer households are larger with an average size of 8 persons, while

non- poor households have an average of 6.9 members. The study statistically found it significant that a

large size household affects its wellbeing. Beside the size of households; household’s dependency rate

is also correlates with poverty. It means that poorer households tend to have higher dependency ratio

2than the non-poor households.

Figure 16: Poverty Rate (%) and Education

Source: MoEc, Poverty Status in Afghanistan report, 2010.

It is a general expectation that education will increase a person’s employment opportunity and

earnings. Therefore, education is closely linked to the poverty level of households. The poverty rate

falls steadily as the head of household becomes more educated Figure 16).

Access to health services is another important factor for poverty reduction. The analysis revealed that

there is bigger disparity of access to health care services than education in the consumption quintiles 3.

People in the poor households generally receive significantly less basic health services than the non-

poor.

2 Dependency ratio is defined as the ratio of the number of members in the age group of 0-15 years and above 60

years old to the number of working age of 15-60 years old.

3 Population Consumption quintile


Figure 17: Access to Selected Public Services by Poor Households (%)

PC Quintile Net primary enrollment of Children age 6-9 Antenatal care

%

Skilled birth

attendance % Boys Girls Total

1(poorest) 41 31 36 24 10

2 42 27 34 29 15

3 40 28 34 38 23

4 40 30 35 42 31

5 (richest) 51 40 46 57 49

Total 43 31 37 37 25

Source: Poverty Status in Afghanistan report, 2010, MoEc

Providing education to the younger generation and investing in their health can lift the poor out of

poverty and break the vicious cycle that traps the poor in poverty for generations.

Access to other basic services such as drinking water, electricity and sanitation in general are very low

and disparities of the services are visible among poor and non-poor households.

Figure 18: Access of Poor and Non-Poor Households to Basic Services (%)

Households access to; (%) Poor Non-poor Total

Safe water 23 29 27

Electricity 33 45 41

Sanitary toilet 2 7 5

Source: Poverty Status in Afghanistan report, 2010, MoEc

So far NRVA is the only national households’ survey which is widely used for poverty analysis in the

country. The survey have been conducted in different seasons of the years and with different numbers

of food and nonfood items in the questionnaire which made it almost impossible to do a comparison

between NRVA 2005 and NRVA 2007/08. Below you can see some of trends in the primary education

enrolment and immunization which shows a significant positive change over time.

Recently, in a joint report of MoEc and WB, “Afghanistan Provincial Briefs” published highlighted

that the poverty distributions are significantly varies from province to province. For instance, poverty in

Helmand is 9% while it is 76% in Paktika compare to the average 36% national poverty rate. At the

same time, if we look at students’ enrolment, it is the highest in Daykundi (67.9%) while enrolment

rate in Uruzgan is only 2%.


Figure 19: Poverty Rate and Student Enrollment Rate Province

Poverty Rate (%)

0 25 50 75 100

Paktika

Logar

Laghman

Kunarha

Badakhshan

Paktya

Balkh

Wardak

Bamyan

Samangan

Nooristan

Khost

Ghor

Daykundi

Badghis

Urozgan

Herat

Zabul

Takhar

Nangarhar

Kunduz

Faryab

Sar-I-Pul

Nimroz

Kabul

Kandahar

Panjsher

Kapisa

Ghazni

Parwan

Baghlan

Jawzjan

Farah

Helmand


Part Three: Sectors Key Achievements:

3.1. Security The Visionis to ensure the security of state, persons and assets through the provision of a costed,

integrated and sustainable national security infrastructure, law and order policy.

Expected Outcomes Outcome Indicators

1. Strengthened ANA able to function without foreign

assistance

2. Strengthened ANP in collaboration with justice,

enforce rule of law across the country

3.Afghans’ physical security is protected from criminal

and other aggressions

4.Afghan citizens free from IAG’s treats

5.Mined land and all areas with unexploded ordinance

cleared

6.Poppy cultivation and drug trafficking reduced

1.Number of security operations independently and

successfully undertaken by ANA

2.a.Successful police activities for protection of citizens

(# of operations successfully undertaken by ANP

2.b. Strict surveillance of the police force to prevent

abuse of power and corruption practices (nature of

surveillance and reports)

2.c.ANA and ANP are fiscally sustainable

3.Afghan perception index (survey)

4.Absence of IAG’s activities destabilizing society

5.a.Reduced level of death and casualties caused by

unexploded ordinance and mines

6.a. Percentage of poppy harvest are reduced hectors of

poppy land reduced

6.b. Tone of drug trafficked seized and number of drug

traffickers are prosecuted

3.1.1. Ministry of Defense:

The achievements of MoD during 1389 are as follow:

159363 officers, Bridmen and soldiers have been recruited of which during this year 4813

officers and soldiers have been enrolled.

ANA have been supplied with 85888 light weapons, 489 heavy weapons, 739 armored vehicles,

5630 different types of vehicles, 7 airplanes C-27, and 10 helicopters MI-17.

196 joint operations conducted with NATO/AISAF, 1130 independent and commando

operation, and 202321 activities to make sure security across the country and more specifically

in most vulnerable areas.

Taking security responsibility of Bagram prison from international forces, and successful

measures have been taken for security of national parliamentarian election across the country.

During the operations, 637 ANA personnel have martyred, 2356 injured and 4379 enemies have

been killed and 702 others injured.

21585 m3 buildings from national budget and 50000 m3 from CSTC-A have been constructed.

From operating budget, 79655 m3 of MoD buildings and infrastructures repaired.

Amount of 1,110,941,918 Afs revenue has been collected and submitted to the account of

government.


3.1.2. Ministry of Interior:

Main achievements of Ministry of Interior during 1389 were as follow;

Structure of ANP (Tashkil) increased from 68000 to 122000 police of which 91194 polices

recruited so far.

In total, 8550 criminal cases happened in capital and provinces, 7649 cases discovered and link

to that 12027 accused people were arrested and have been sent to detentions for further

investigations. The 901 other criminal cases are under investigation and operation of police

forces.

614 joint operations have been conducted in the capital and provinces and as result of these

operations; 4840 of government enemies have been killed, 881 injured and 5630 enemies

arrested of which 47 of them are foreigners.

Through DIAG program, 4035 different type weapons, 82958 bullets, and 15855 ammunitions

have been collected.

52 official security companies registered and 57 of unofficial security companies dissolved and

their weapons collected and submitted to DIAG process.

274 tons of narcotics (including Heroin, opium, cannabis, morphine, and chemicals) have been

seized and 45 narcotic production laboratories destroyed. 15171 Jeribs of land eradicated from

narcotic cultivation.

Ministry of interior collected 1.8 billion Afs from its different revenue sources and submitted to

government account.

3.2. Governance, Rule of law and Human Rights

VISION: Developing Afghanistan into a stable and mature Islamic constitution democracy, support the

privet sector, provide principled governance, and ensure gender-equity and protect the rights of all

Afghans equally.


1. Public Administration reformed and public service

institutions delivering services as per their

mandates

Civil Service Commission fully functional,

satisfactorily delivering all services related to

human resource management

Governance of disaster management improved

Administration structure

Trained professionals

Resources and infrastructure

Community participation

2. Elected National Assembly effectively performing

mandated tasks

3. Corruption Reduced

4. Human Rights realized, protected, promoted

1.1 % of progress in PAR implementation

1.2 Public perception index of service delivery by

government institutions

2. Human Resource Management Regulations, Civil

Service Pay and Grading Regulations, Pension and

Retrenchment regulations are applied both at

national and sub-national including municipalities

3.1 Disaster preparedness mechanisms are satisfactorily

handling national disasters

3.2 Timely, needful and type of responses + the reach

and target# of legislations drafted and enacted

1.1 Vigilance and monitoring of governance

performance are in compliance with the

constitution

1.2 Parliament members representing interests of their



and extended

5. Improved Participation of Women in governance

6. Improved participation of youth in governance

through application of mechanisms developed

constituents in governance of the country

1.3 Operation of parliamentary commissions and their

ability to address priority public issues and meet

public needs

2. Status of Afghanistan in the Transparency

International Corruption Rating (Annual Report)

3. Status of Human Rights protection and promotion

practices in UN Human Rights Report

7.1 % of women in the three wings of public service

(executive, legislative and judicial), privet sector

and civil society

7.2 Comprehensive gender sensitive legal framework

developed by IARCSC applied

8. Type of youth participation and # number of youth

people involved.

3.2.1. Governance:

Local Governance policy approved and endorsed by the cabinet.

Laws for sub national offices, assemblies, districts, community council’s drafted and provincial

councils and municipalities’ laws revised.

A cabinet “sub national planning and finance committee“ is established.

The structure (Tashkil) of sub national offices has been revised and pay and grading system is

commenced.

Recruitment processes of deputy governors and district governors are under reform. It is shifted

from a political selection to a merit based approach. 30% of the nominations are done according

to the reformed selection process.

Working process at the national and sub national, districts, assemblies and municipalities have

been simplified.

Administrative improvements are started, 9 buildings for provincial governors and 9 buildings

for provincial councils were constructed.

3.2.2.Public Administration Services:

Structure of 30 ministries and key administrative institutions have been reviewed and the pay

and grading system is now completed in 10 ministries.

International Employment Principles are increasingly applied. 13 public service legislative

documents have been prepared.

5 Reform Implementation & Management Unit (RIMU) have been established and 5 existing

RIMUs are now under regular monitoring and evaluation.

25 District Governors have been recruited through a merit based competition process.


More than 15,000 civil service employees in Kabul and provinces attended management

training courses, and new opportunities were provided to male and female staff to develop their

capacities.

Managing for capacity program is one of the CSC initiatives which support and build the

capacity of government institutions through recruitment of experts.

3.2.3. Human Rights:

The following progress has been made during 1389;

209 training workshops have been conducted concerning human rights issues, 5785 persons

participated of which 27% were females and 73% were males.

public awareness on human rights has been disseminated on radio and TV: 441 hours were

broadcasted on radio, 148 hours on TV

Six committees for human rights inspection are established in provinces.

Relevant laws have been reviewed and recommendations are provided covering a wide range of

topics: protection of underserved families and individuals, structure and authority of special

courts for ministers, Supreme Court members, family law and bylaws of private education

institutes.

Assessments reports of addicted children and physical punishment of children at schools have

been produced and distributed.

40 female and 364 male persons have been released from prisons during monitoring missions.

6,573 persons have been interviewed in 376 monitoring missions done in 129 districts, and their

opinions on human rights situation reflected.

1,891 cases of violence against women have been recorded.

3.2.4.Justice and Rule of Law:

The goal of this sector is to provide improved access to justice to all through the improved integrity and

performance of Afghanistan’s judicial institutions that are supported with appropriate infrastructure,

streamlined administrative structures and strengthened coordination and integration.

Major progress of the sector is as following:

Totally 10 legislative documents have been drafted, revised and endorsed.

5 criminal laws on property management (illegal land owners) have been drafted.

The new pay and grading system is now implemented in the Ministry of Justice.

5,000 people got legal awareness training and 1,000 accused and vulnerable persons got legal

support.

The anti-corruption strategy is now part of the strategic development plan of the Ministry of

Justice.

The Ministry of Justice has established a new database on laws, and regulations.

20 prison buildings have been rehabilitated or constructed.

Most of prisons in Kabul and provinces have got new health facilities to all.


6015 criminal cases, 3139 public security cases and 1805 civil and legal cases reported from

Kabul and provinces, which 35% of them have been finalized.

3.2.5.Religious Affairs:

The aim of Religious Affairs Sector is to provide competent and qualified religious services, to increase

public awareness of the Islamic religion and its values. The government’s primary interest is to ensure

that all Afghans have equal opportunity to exercise their Islamic faith and their religious beliefs and

Islamic values are embedded in the development process of the country. The strategy intends to

integrate religious values in every aspect of government policy. Progress includes the following:

Pilgrimage facilities have been improved, all travel arrangements and accommodation services

have been reviewed and proper actions were taken.

35,000 pilgrimages trip to Saudi Arabia were facilitated and accommodated.

Haj & Endowment properties generated income of 24,555,238 Afs.

A merit-based competition for the recruitment of Mullahs and preachers is now applied; reform

units have been established countrywide covering 549 staff.

Seminars on Islamic issues (Islam&Health, Islam & Peace) for religious leaders and public

awareness have been conducted in all provinces.

Overall 132 commandment “Fetwah” on social life issues, cultural and political affairs

delivered.

34 masques constructed in Kabul and provinces and 40 more rehabilitated.

3.3. Socio Economic Development

3.3.1. Education Sector

Vision: Regardless of gender, ethnicity, socio-economic status or religious affiliation, all Afghans will

have equal access to quality education to enable them to develop their knowledge and skills and thereby

maximize their potential for increased income and improve the quality of their life.


1. Quality of academic teaching and research

enhanced.

2. Access to Higher Education increased.

3. Participation of women students and faculty

in institutes of higher education increased

4.Improved quality of higher education

7. Improved quality of education

6. Literacy rates improved

7.Equal opportunity for all

8. Improved access to vocational education

1.a Number of university teachers appraised for assessment of

teaching and research quality

1.b- Number of publication by university teachers in national

and international journals

2. Number of students enrolled in universities.(Gender

disaggregated)

3. % of women in total student population at university

3.a. % of women faculty members at university

4. Standardized tests to assess quality of education applied

5. No. of competent teachers and principle (male and female).

6. No. of illiterates in the country (male and female)



9- Improved quality of vocational education

10- Improved sports facilities

11- Enhanced contribution of the Academy in

Science

7. ratio of boys and girls enrolled

7. a. No. of new school buildings constructed with basic

amenities for both male and female

8.a. # of vocational training centres available & numbers

enrolled in vocational training

8. b. No. of persons trained through NSDP (male and female)

9. # of Trainees graduating with vocational training

diplomas/certificates find employment.

10. Nature of facilities available to number of people

11. Nature of scientific research, funds invested in science

research, number of international standard research

publications etc.

3.3.1.1. Ministry of Education;

Key achievements of the MoE during 1389:

The number of general education students from (6.5) million in 1388 increased to more than

(7.4) million in 1389 from which (39%) of them were female students.

In 1389, the number of Islamic education students reached (149,000) and the number of

students in the teacher education centers reached (49,000) from which (20,000) or (41%) of

them were female students and moreover, the students of literacy education reached (720,000)

persons from which (80%) of them were female students.

In 1389, the number of general education teachers reached (168,000) fromwhich(31%) of them

were female students.

In 1389, the number of teachers in Teachers Education Centers reached (1,252) teachers and the

number of Islamic teachers (Mudarriseen) reached (5,018) and moreover, the number of

teachers in the technical and skill training centers reached (1,118) teachers.

In 1389, approximately (40.6) million new books were published and distributed to all

provinces.

In 1389, there was a plan to construct (500) schools, but unfortunately only (191) schools were

constructed.

The total number of general education schools from (11,460) in 1388 increased to (12,223)

schools in 1389.

In 1389, around (44,000) students enrolled in the technical and vocational training centers.

3.3.1.2. Ministry of Higher Education

Key achievements of the MoHE during 1389:

In 1389, three Universities in (Loghman, Farah and Panjshir), 4 new faculties and 23 new

Departments in (Ghazni, Faryab, Khost and Balkh) and 22 evening classes in (Parwan,

Nangarhar, Badakhshan, Balkh, Khost and Bamyan) provinces have been established.


In 1389, Concur Examination planed for (120,000) students, but only (46,500) students passed

the exam and enrolled to higher and semi-higher education universities and institutions, from

which (10,763) of them were female students.

In 1389, exactly (1,700) teachers, Afghans youths received foreign scholarship programs for

bachelor, master and doctorate.

Jawzjan university building and hostel for the enrolled studentsconstructed andKhost Cadre

Hospital constructed and part of Ali Abaad Hospital rehabilitated.

In 1389, about (40) residential apartments for the Kabul University’s lecturers have been

constructed.

3.3.1.3. Ministry of Information, Culture, Media and Youth

Key achievements of the MoIC during 1389:

In 1389, about 286 magazines were published and 3,286 new books have been reviewed and

approved for publication and 72 new licenses for newspapers, weekly magazines, magazines

and monthly publications have been issued.

Approximately, 28 TV stations, 5 FM Radio stations, 21 AM Radio stations, 1 Short

WafeRadio station have been registered in the country.

Till now, icenses have been issued for 22 network cables and 13 translation and publication

centers in the country.

The historical places of Wali Baba Hill located in Ayenak mines have been excavated and 10

historical monuments rehabilitation projects in different provinces completed by (85%).

Different sources have returned 1,100 ancient art pieces to the National Museum and this year

21,000people visited the National Museum, and total income from the visitors to the

government reached 120,000Afs.

This year, income from publications was 224 million Afs.

3.3.2. Health Sector

Vision: Better physical, mental and social health for all Afghans.


Health status of the people of Afghanistan

improved.

Progress made to attainment of health related

MDGs.

1. Improved and equitable access provided for

quality primary, secondary and tertiary health

care.

2. Reproductive and child health care services

improved

3. Spread of Communicable diseases arrested.

Maternal Mortality Rate

Under 5 Mortality Rate

Infant Mortality Rate

1. a % of population within two hours walking

distance from PHC services.

1.b Utilization of services by public increased

2.a # of births attended by skilled professionals

2.b % of children under 1 year having received

measles antigen, DPT & hepatitis dosage and polio

drops



4. Nutritional status of people improved. 3. a% of TB cases detected and treated

3.b % of Malaria cases detected and using preventive

treatment

3.c HIV prevalence

4. Malnutrition status among children and lactating

mothers

The Ministry reported the following achievements:

Basic Physical Health Services is now covering 87% of the population, 66% within a two

walking hours and 57 % within one hour walking distance.

In 1389 skilled birth attendance rate is up to 42 % (305,110) in institutional deliveries.

In 1389 antenatal care was 37% of pregnant women.

Under one year children immunization coverage reached higher levels; measles 79%, OPV 99%,

DPT-3 87%.

TB detection rate is still 71% of the population but 88% of all cases are treated.

636 HIV positive recorded which, 80 new cases (17 female & 63 male) have been diagnosed and

registered in 1389.

Detected acute malnutrition was 383,291 cases, the number of moderate cases was 22,643 and

we treated 360,648 sever cases. 12,320 persons diagnosed were sent to feeding centers.

Malaria Incidence rate declined from 16.6% (1388) to 16%, in 1389 the number of cases was

390,729.

Health Service Quality Unit established in curative medicine department.

Policy documents and minimum standards for hospitals developed.


The following table describes our expansion of services on the base of year to year.

1389 1388 Facility Type No

24 20 National Hospital/ Special Hospital (NH/ SH) 1

5 4 Regional Hospital (RH) 2

29 30 Provincial Hospital (PH) 3

67 49 District Hospital (DH) 4

22 16 Comprehensive Health Center Plus (CHC+) 5

388 376 Comprehensive Health Center (CHC) 6

807 666 Basic Health Center (BHC) 7

467 121 Sub Health Center (SHC) 8

11,170 8,500 Health Post (HP) 9

26 20 Drugs Addicted Treatment Center 10

5 3 Follow up TB Unit (FTU) / TB Control Center (TBC) 11

102 67 Mobile Clinic (MoB) 12

96 64 Others (Prison, Jail, Kochi, and some other HFs) 13

As the table highlights the MoPH supported by its development partners had significant progress on

expansion and outreach of the BPHS. The number of Sub Health Centers was expanded from 121 to

467, the number of Health Posts was increased from 8,500 to 11,170 and the number of Mobile Clinics

went up from 67 to 102. One Provincial Hospital was upgraded to a Regional Hospital.

3.3.2. Agriculture and Rural Development

Vision: To ensure the social, economic and political well-being of rural communities, especially

poor and vulnerable people.


1. Production of food crops increased (MAIL)

2. Productivity of rural livestock improved (MAIL)

3. Rural income opportunities

increased(MAIL/MRRD)

4. Investment in rural enterprises increased

contributing

to revenue generation .(MAIL/MRRD)

5. The basic infrastructure, human capital and

governance framework in community and district

level established and is functional to improve rural

wellbeing, enabling marginalized and vulnerable

1. Volume of agricultural production

2. Volume of Livestock production

3. Income of rural people

4.1. Volume and amount of investment made

4.2.No of enterprises developed and their

quality(profits realized

5. No of infrastructure projects implemented

5.1. No of functional CDCs and DDAs in place

6. No of rural people have access to schools, health

care facilities as well as administra-tive services



people to take themselves out of poverty.

6. Reduction on travel time and price of villagers living

along the improved roads and better access to

schools, health care facilities and as well as

administrative services

7. Behavioral Changes in Health and Hygiene practices

of rural residence

7. # of people in Rural Areas have access to safe

drinking water and hygiene facilities

7.1. % of Rural population have access to sanitation

facilities (household, health clinics and schools

hygienic latrines)

3.3.3.1. The Ministry of Agriculture, Irrigation and Livestock

Mani achievements of Ministry of Agriculture for the year were as follow:

6.1 million trees (seedlings) have been planted, one hundred hectares tree nurseries are formed, 118

hectares forests are established, 800 hectares pistachio forests in different provinces are

rehabilitated and protected, 80 forest management councils are established and 2721 kg medical

herbs were collected and cultivated.

Band e Amir national park, Kol e Hashmat khan and Wakhan Corridor have been developed and

protected and 103 types of different birds in Kol e Hashmat Khan were registered.

6,000 tractors with 65% subsidy rate, 75,000 metric tons of both high-yield wheat seeds and

chemical fertilizer were distributed.

7,000 hectares new gardens in different provinces were established, 40 varieties of young fruit trees

were disseminated and 5 million quality fruit trees were produced and distributed.

3,286 doses of frozen animal sperm for artificial impregnation in the capital and provinces have

been distributed, 2.1 million animals of different types from different diseases have been protected,

2.5 million doses of vaccines were produced and 1.3 million animals were treated.

A microfinance program with US$10 million has been started to provide micro credits to farmers

with a subsidized interest rate, goods and grants worth 136 million Afs have been distributed to

farmers through NGOs and cooperatives.

54,312 tons of farm products, 27,800 karakul skins/hides and 188,200 liters of milk have been

supplied and sold in the local markets.

89,826 metric tons of wheat have been preserved and are available in the strategic wheat stores.

The Afghanistan Land Management Authority was established, and is preparing for leasing of 25

thousand Jeribs of land to the private sector.

3.3.3.2. Ministry of Rural Rehabilitation and Development:

Key achievements of the MRRD during 1389:

3,467 new CDCs were established, 2,849 Community Development Plans (CDPs) were developed

and 6,262 projects in different sectors i.e. hygiene and sanitation, transport, irrigation, electricity,

education, health and livelihood were implemented.

Numbers of capacity building interventions conducted and Rural development research guideline

has been prepared


286 km of secondary and tertiary roads have been constructed and rehabilitated in the rural areas.

4,018 m rural structures (i.e. bridge, culvert, retaining walls, flood prevention structures etc.) were

constructed.

A total of 3,893,000 temporary jobs for rural people and 11,812 permanent jobs for running the

projects through National Solidarity Program have been created.

61 shallow wells drilled and 7 water networks have been established, and in total 7,340 sources of

potable water were created which results in access to safe potable water for 1,180,314 rural people.

493 NSP rural electricity projects were implemented including solar energy, hydro power and diesel

generators. A total of 6,000 kW has been produced and about 60,000 families have been provided

electricity.

103 district council selected and 16 information center for districts established.

3.3.4. Social Protection:

Vision: Decrease vulnerability and help the poor to climb out of poverty and build the country of social

justice in line with the Islamic values and Afghan traditions.


Poverty level and vulnerability of minorities, PwDs,

women, children, drug addicts and the poor reduced.

1. Children reintegrated away from their families

2. Trained women find employment and income

3. Child labour use reduced

4. Drug addicts treated and counselled in Nijat Center

5. Relief activities, food and non food distribution and

relocation of disaster affected people

6. Kindergartens privatized

7. Trained PwDs & Martyrs families find employment

8. Reform pension system implemented

9. Martyrs families &PwDs are provided with cash

payments, micro finance facilities and land plots.

10 .Martyrs families & PwDs are aware of their rights

under Afghan Constitution and social inclusion needs

11. The Afghan population is aware of PwDs &

Martyrs rights and social inclusion needs

12. Disability Centre/institution operational

% of vulnerable people with access to food, shelter,

potable water, education, health and access to

employment opportunities.

1. # of children reintegrated.

2. # of women trained & amount of income generated

3. % of children in labour population

4. # addicted children treated

5. Nature and types of assistance provided and number

of people assisted

6. # of kindergartens privatized

7. # of employed PwDs and Martyrs families;

8. # of pension beneficiaries

9. # of Martyrs families and PwDs households receive

benefits (amount of cash, access to micro finance

facilities and land plots)

10. Martyrs & PwDs perception and knowledge level

(Survey)

Actions taken by Martyrs & PwDs to exercise their

rights

11. Public perception index (Survey)

12. Number of institutes operational


3.3.4.1. Ministry of Labor and Social Affairs and Martyrs and Disabled (MoLSAMD)

Goal: To contribute to economic growth through development of human capital, reduce poverty and

eliminate disparities in access to basic needs.

Key achievements of the MoLSAMD during 1389:

In 1389, NSDP trained (0,363) persons, while GMU trained (4,480) persons in vocational skills

development, and the total number of graduates during this year is (12,743) persons.

In 1389, MoLSAMD has provided training sessions for (83,183) peoples in need and right now

they are continuing learning in different training centers.

Currently, we have (82) child protection associations in (28) provinces in the country.

In 1389, MoLSAMD collected (1,115) beggars and provided basic needs for them.

There are (53,694) military and civil retired personnel who receive pensions.

MoLSAMD provided special winter services for (3,000) vulnerable families.

In 1389, the ministry was given small budgets to implement five programs: Labor Affairs, social

protection, martyrs, disabled and general administration, local governance, rural infrastructure,

economic regeneration, social protection, and institutional support. The ministry had a total budget of

Afs (1.6) billion, from which (60%) was for operational expenditure and (40%) for the development

budget.

3.3.4.2. Afghanistan National Disaster Management Authority (ANDMA)

Key achievements of the ANDMA during 1389:

In 1389, around (303,650) vulnerable families received emergency humanitarian assistances, and

around (4,000) families received cash transfers and about (5,030.652) tons of wheat has been

distributed to (105,733) vulnerable families in Kapisa, Parwan, Logar and Kabul provinces.

In 1389, around (968,000) persons were covered by the natural disaster management awareness

programs and (575,287) people including men and women got awareness trainings of the danger

of mines and unexploded ordinance.

In 1989, some (1482) victims of floods have been rescued.

Till now, (34,194,833) square meters of land cleared from the danger of mines and (25,524,846)

square meters of land cleared from unexploded mines.

3.3.4.3.Refugees, Returnees and Internally Displaced People (IDPs)

Goal: To promote social and economic inclusion for returnees and IDP’s; assist long term staying

refugees, and to facilitate voluntary, safe and gradual return and reintegration of returnees and IDPs and

manage cross-border population movements.

Key achievements of the MoRR during 1389:

In 1389, around 313,493 Afghan refugees returned home, from which 38% came voluntarily

and 62% were deported by force.

In 1389, resident lands distributed to 7,965) vulnerablefamilies.


In 1389, 4 residential areas (Shahraks) for the returnees and displaced people have been

constructed in (Balkh, Zabul, Helmand and Kabul) provinces.

In 1389, transportation and reintegration facilities have been provided to 5,897 families to settle

in their original places.

3.3.5. Infrastructure and Natural Resources Sector

3.3.5.1. Roads and Transportation

Vision Statement: A safe, integrated transportation network that ensures connectivity and that enables

the low-cost and reliable movement of people and goods within Afghanistan as well as to and from

foreign destinations. This will give impetus to economic growth and employment generation and

integrating with the global economy.


1. Road infrastructure connecting provinces.

2. Remote rural areas are linked with district and

provincial capitals

3.communication and transport improved with

neighboring countries

4. Afghanistan connected internationally.

5. Improved governance of the civil aviation and the

road transport sector.

6. Improved communication and transport linkages

contribute to promotion of business climate, trade and

commerce which generate revenue.

1. Road infrastructure connecting provinces.

2. Remote rural areas are linked with district and

provincial capitals

3.communication and transport improved with

neighboring countries

4.Afghanistan connected internationally

5. Improved governance of the civil aviation and the

road transport sector

6.Improved communication and transport linkages

contribute to promotion of business climate, trade and

commerce which generate revenue

3.3.5.1.1. Ministry of Public Works

Ministry of Public Works (MPW) is responsible for construction and maintenance of the transportation

infrastructure. It is mandated to increase the capacity of transportation and civil aviation’s facilities and

assets and effective maintenance to ensure easy access to provinces, remote and difficult areas within

the country and the region.

The MPW reports following achievements;

1. Roads survey and Design: A total of 231 km road has been surveyed and a total of 569 km road has

been designed in different areas of the country. Additionally, 36 bridges have been surveyed and 30

bridges have been designed.

2. Roads Construction: A total of 37 km regional highways have been rehabilitated and 416 km of

national and provincial roads as well as 153 meters of bridges have been constructed. The trend of

roads construction (national highways, provincial and urban roads) shows a positive upward trend

over time.


3. Railways Survey and Design: The feasibility study of 1,225 km of railways has been conducted. It

was financed by the external budget.

4. Construction of Railways: 75 km railways have been completed.

3.3.5.1.2. Ministry of Transport and Civil Aviation

The Ministry of Transport and Civil Aviation (MoTCA) is responsible to make policies for

development and expansion of land and air transport services, prepare the standard operating

procedures for using airports and equipping the airports in accordance with the International Civil

Aviation Organization (ICAO) standards. The followings are the major achievements of MoTCA in

1389;

Kabul International Airport and Herat International Airport should have achieved full

International Civil Aviation Organization and International Air Transport Association’s

compliance in March 2010. However, the MoTCA has managed only 96% of the target

regarding the Kabul International Airport and has achieved only 20% of the targets for the

Herat International Airport. The Ministry reports budget limitation as the main reason for that,

but meanwhile it has managed to get external budget support.

Airports in Mazar e Sharif, Jalalabad and Kandahar should be upgraded with runway repairs, air

navigations, fire, rescue and communication equipment till the end of 2010. The MoTCA has

managed to have the required progress in Mazar e Sharif and Kandahar airports. Jalalabad

airport is completely controlled by ISAF forces and the ministry reports no progress for the

Jalalabad airport.

The civil aviation law has been drafted and is submitted to the Ministry of Justice for further

review.

In order to further expand the land and air transport activities and deliver quality services, the

MoTCA has managed to establish the required facilities for private sector development. Up to

date, four airline companies and one Cargo Company have been registered with MoTCA.

The transition of aviation management from NATO to the Afghan government is one of the

major objectives of MoTCA. So far some progress has been made towards this objective and it

is expected that till the end of 1390 the overall control and management of aviation will be

transferred to MoTCA.


3.3.5.2. Mines Sector

Vision: Establish Afghanistan as an attractive destination for investment and economic growth.


o Increased investment in Mining sector

o Income and revenue generated from Mines

extraction and other natural resources

o Private sector financing attracted

o Laws related to Mines are approved

o Geological study findings and

recommendation adopted for implementation

o Exploration results reviewed for developing

exploitation programs

o Research projects findings reviewed for follow

up

o Hydrological station constructed,

o Dept. of Cadaster established,

o Technical equipment in the ministry

appropriately utilized

o Amount of investment in mining sector

o % Increase in net revenue from Mines and

natural resources.

o Amount of private sector investment

o # of laws enacted and implemented

o Geophysical and geological data system in

place

o Extraction planning document available

o # of mines and gas field exploitation initiated

o Review documents with recommendation

available

o Hydrological station in operation

o Dept. in operation

o Trained personnel deployed.

o Type of technical equipment used

The main achievements of Ministry of Mines are as follow:

1.7 billion Afs (for the first ten months of the year) revenues collected and contributed to the

national budget.

Opening and extraction of Angot oil wells and completion of bidding process and contracted

with Kam Oil Company.

For the first time, Afghan engineers repaired gas wells (No. 14 and 20) and connected them to

the general gas pipeline.

Environmental assessment of 26 mining sites completed, and 8,000 m2land provided to MCC

Company to build its offices and residential apartments.

Issuing mining license of 68 km2 of Kaleach and Ashtapa coal mine to MCC Company to do

research and development for production of 400 MW electricity for Aynek Copper mine.

Nooraba gold mine has been contracted to WLGT Company and the contract for research and

development of Qaraghan Gold mine of Dushi completed.

Bidding process for Ajegag Iron mine started, 22 international companies have been short listed

Signing the agreement framework of gas pipeline of Turkmenistan – Afghanistan – Pakistan –

India.


Signing agreement of transparency initiative in extractive industries between Ministry of Mines

and Ministry of Finance and establishment of sound revenue collection system with coordination

of MoF.

To keep in contact with investors and international institutions, fairs, round tables discussion

sessions and road shows have been conducted in London (June 2010), in New York (Sep. 2010),

Hong Kong, India and recently in Dubai.

It has been agreed to establish a trust fund for mine sector revenue (Mining Trust Fund)

Legal reforms including mine laws and hydrocarbons and changes of the ministry of Mine’s

roles and responsibilities drafted, and simplification of issuing license.

Policies for precious stones, marble stone, oil and gas, rare earths and coal were prepared.

3.3.5.3. Communication and Information Technology

Vision: Make affordable information and communication services available in every district and village

of Afghanistan through enabling market economy.


o Well-developed information and

communication technology system promotes

business, commerce, private sector

development, public service communication

and coordination and strengthen good

governance system.

o effective functioning of digitalized ICT

system for the government at national and

sub-national level

o Increased access of afghans to information

and communication technology facilities

o % of increment in GDP and private sector

investment.

o promote transparency and citizen access to

public information.

o % of population have access to ICT services

(Gender disaggregated)

o # of government offices having official web

presence

The main achievements of MoCIT during 1389 are as follow:

1. Expansion of ICT coverage: MoICT has installed 67 towers while the private companies have built

618 communication towers. Up to date, in total 3977 towers across the country have been installed.

2. Customers: the number of digital and mobile users has increased by 2.8 million users within 1389,

which shows a good progress and coverage of communication networks. Up to date, the number of

all users of telephone reached a level of 16.33 million across the country.


3. Ongoing Investment boom in the ICT sector: This year, USD115million have been invested in the

ICT sector, which accumulates to USD 1.6 billion so far.

4. The contribution to government revenue grows in parallel to investment: this year the ICT sector

has contributed approximately USD 140 million.

5. Employment: more than 18,000 jobs have been created this year which brings it up to more than

100,000 full day jobs, with 20,000 technical/professionals directly working for the ICT sector and

80,000 working as contractors, technicians, selling stores and etc.

6. 3131 km of optic fiber have been contracted out, 75% has been completed. Afghanistan is now

connected with most of its neighbor countries: Iran, Uzbekistan, Tajikistan, and Pakistan. The


second phase of this project will connect the south eastern provinces. It has a length of 470 km and

is in progress.

7. The first phase of digital telephones was planned for the five big cities of Kabul, Mazar, Kunduz,

Kandahar, and Nengharhar. The project in four provinces has been completed, but some parts of

Kabul city is still work in progress. 90% of the project is completed. The second phase of the

project is to expand digital telephone in another 7 cities. The project is already under

implementation.

8. 11 internet licenses have been provided to private companies. Up to date, 30 internet companies

have got their licenses to provide internet service.

9. 460 postal offices across the country are providing national and international postal services.

3.3.5.4. Energy and Water


o Private Sector investments increased in energy

sector

o Distribution and delivery networks developed and

expanded, decrease the losses

o Electricity, Gas, petroleum and renewable

resources developed

o Access to electricity in rural/urban areas increased

o Irrigation facilities for agriculture provided

o Contribution made to increasing food production

and food security

o Protection provided from effect of drought and

floods

o Increased access to potable water

o Water management associations / committees

operational

o Amount of private sector investment

o % of urban & rural electricity coverage

o % of household with electricity

o % of small industries use energy resources

o # of small energy resources activated

o Nature and type of irrigation facilities and

Hectares of land irrigated

o Nature and type of contribution made for

increasing food production and food security

o Measures undertaken during natural disasters

o # of household with access to pure drinking water

o # of association/committees managing water

resources at the community level

3.3.5.4.1. The Water Sector

Main objective of the Ministry is the effective and sustainable development and management of water

sources through inclusion of its users. The Ministry of Energy and Water reports the following

achievements;

1. A new water law has been drafted, approved and enacted. Additionally, new regulations have been

prepared to facilitate and direct the establishment and operating procedures of river basin

institutions, river basin councils, users associations and water usage licenses.

2. 700 water dams (Sarband) and canals have been constructed or rehabilitated.

3. 110 National Hydrologic Stations have been installed in twenty provinces and are functioning.


4. The emergency rehabilitation of traditional irrigation system was implemented in Balkh, Kunduz

Khan Abad, Helmand, Parwan, Kandahar. Provincial irrigation directorates are strengthened, the

reservoir dams and irrigation projects in Shah WaAros (Shakardara), Almar reservoir dam, Pashdan,

and Machalgho irrigation projects are in progress. The feasibility studies of Kamal Khan irrigation,

Panjshir dam, Horsaj flood protection project, Chashmeshefaa project in Balkh, Ali shing and

Kalagosh project, and Andkhoy potable water project andShatoot reservoir dam project design is

progressing.

5. Through the water management programs implemented, so far 142,234 hectares of land have been

irrigated. The additional land irrigation is depicted in the following chart.

3.3.5.4.2. The Energy Sector

This sector aims at the development of the energy production and imports, its transformation and

distribution particularly using private sector capacities to increase access to energy in all urban and rural

areas.

The benchmarks for the energy sector to be achieved by 2013 are as follows:

65% of urban households have access to electricity;

25% of rural households have access to electricity;

90% of non-residential institutions have access to electricity in major cities; and

75% of production and distributions cost will be recovered by final consumers,

Key Achievements:

1. Power Production: the hydro power production plant in Naghlo with 110 MW capacity (repair of

one turbine is completed and the repair works of the other turbines are in progress ), rehabilitation

of hydro power plants in Sorobi and Mahipar (100% completed), the first phase of a feasibility


study for the Baghdara hydro power plant is completed, but due to unavailability of funds the

second phase is postponed; survey, rehabilitation or construction of micro hydropower plants in

five provinces are in progress. The projects in Bamyan province and ChahardaraGhorband are

completed and ongoing work in all other provinces will be completed in the coming year; one

turbine of Darwonta hydro power dam has been repaired.

2. Power Transmission: The 220 KW electricity transmission line rehabilitation project from Hayratan

to PuliKhumri and Kabul is operational, but many projects are still under implementation including

the electricity transmission line from Shir khan Bandar to Imam Sahib, the establishment of sub-

stations in Imam Sahib, Taliqan, Sarepul, Jalalabad and Mehtarlam, extension of the transmission

line from Naghlo to Jalalabad and Mehtarlam, the construction works of Imam Sahib, SarePul,

Laghman and Jalalabad substations are completed and extension of distribution grid is in progress.

3. Extension of the transmission line from Tajikistan border to Kunduz and PuliKhumri and extension

of 500 kW transmission line from Tajikistan to Pakistan with a total length of 650 km within the

Afghan territory and establishment of substation with 300 MW capacity in Kabul and south east of

the country (the feasibility studies completed and have been sent for review, then the bidding

documents will be prepared to start the project).

4. Power Distribution: The expansion of the Kabul distribution network, expansion of urban

distribution networks in Mazar-e-Sharif, Aybak substation in Mazar-e-Sharif, the power distribution

in Rubat-e-Sangi, Gulran and Kishk districts of Herat province, extension of JabulSeraj, Gulbahar,

Charikar and Pulikhumri, Kunduz and Baghlan, rehabilitation and expansion of the distribution

network in Kabul, power distribution in DashteBarchi, and the power distribution network in

DehSabz district, extension of power in Almar and Qaisar districts are in progress.

Despite considerable challenges and delays the total number of users could be increased from 279,949

in 1383 to 720,000 in 1389, which represents an impressive average annual growth rate of 17% over a

period of six years.

3.3.5.5. Urban Development:

3.3.5.5.1. Ministry of Urban Development

Vision: The urban areas in the country will become hubs for economic growth with all basic

infrastructure and services established so as to facilitate this growth, reduce poverty and encourage

social development.


1. Privet sector investment procured for urban

development

2.Access provided to the urban poor to essential urban

infrastructure services

3. Improved urban revenue resources

1. % of privet sector investment in urban development

(specify by sector)

2. % of urban dwellers specially the vulnerable and

disadvantage poor with access to basic infrastructure

(Roads, water supply, electricity, shelter and

sanitation)

3. % of revenue resources increment

The main achievements of Ministry of Urban Development and Kabul Municipality for the year 1389

are as follow:


Detailed plans, topography and roads construction for the numbers of cities, districts, residential

parks in the capital and provinces, Regional development plan for Jawzjan, Helman and Kandahar

provinces and strategic plans for 12 cities have been prepared.

90 government projects’ engineering plans designed and developed and construction of 45 projects

in and outside of the country (embassies) are monitored and supervised. Progresses are made to

develop construction standards, regulations, and codes.

19.5 km roads/streets, 32.17km drainages, and 677 toilets in 12 Guzars of Kabul city completed.

5.9km of water supply network and sewerage network with the length of 309km prolonged. Ring

water supply networks of the 14 provinces and 4 new cities based on the plan are in progress.

3.3.5.5.2. Kabul Municipality:

102 km streets (10-60 m width) including its sidewalks, drainages, middle small flower park, and

lighting have been constructed.

Flyover bridge of Mirwais Maidan 20%, Daru-l-amanbridge 60%, Ahmadshah Mena Bridge 90%

and Pul-e- Mahmood khan 95% completed.

646755 m3 solid wastes and 73880 m3 liquid/soft wastes compiled and transported outside of the

city.

520000 sub links, 27719 flowers and12855 m2 grass planted in different parts of the city.

1607 numbers of land for residential purposes distributed to the appropriate people.

812668 m2 of land with the value of 398.6 million Afs has been purchased (istemlak) for

implementation of different projects in Kabul.

It was planned to collect 2 billion Afs revenue, while up to the end of year the collected revenue

increased to 2.4 billion Afs.

3.3.6. Private Sector Development

Vision: The sectoral vision is to enable the private sector to lead Afghanistan’s development and

poverty reduction by building on a market–based system, driven by private sector growth, in which

Government is the policy maker and regulator of the economy, rather than a competitor with the private

sector.


1.The legal regulatory framework for the business

sector guiding trade and commerce activities is in

place

2-Private sector access to finance

3-Public private partnerships promoting Infrastructure

expansion

4-Surplus land is used by the private sector to increase

economic activity

5. Economic activity increases in response to increased

human capacity and skill sets and business services

6.State owned enterprises privatized

1. Enforcement and Frequency Compliance Inspection

2. Increase in the availability of credit for business

activities

2. a)% increase in credit stock (or loans to deposit

ratio)

2.b)% decrease in interest rate

2. c) More favorable collateral facilities

3. Number of public private partnerships and amount

of investment

4. Number of business activities started in new land



7.Regional & worldwide markets expanded

8. Non-profit Civil society groups implementing social

and economic development programs

9. Domestic revenues increased in line with budget

estimates

10. core budget execution rate improved

provided for private sector

7.Increased production and number of skilled

employment in the private sector

6.Number state owned enterprises privatized

7.Increase in Regional and International trade

particularly exports

8. Number and type of civil society groups

9. Domestic revenues as % of operating expenditures

10. Domestic revenues as % of legal GDP

11. Value of domestic revenues increase in line with

budget estimates

12. % of core development budget executed

13. % of operating budget executed

14. % of gap between allotment and expenditure

14.a) % of total external assistance going through the

core budget

Ministry of Commerce and Industry

Key achievements of the PSD during 1389:

In 1389, a free Business City zone with a range of 1,491) Jeribsestablished and made

available for business purposes in Sherkhan Bandar, Kunduz.

In 1389, problems of businessmen in Pakistan were studied and analyzed and the results

have been submitted to the MoFA of Afghanistan for finding solutions.

Building of a sample port in Sherkhan Bandar with the length of 50Jeribs and around 50%

of the work is completed.

Basic survey of the Wakhchir Port in Badakhshan Province, bordering China has been

done.

In 1389, this ministry has issued work permits for 13,659 business companies.


Part Four: Cross Cutting Issues:

4.1. Gender

Key achievements of the Ministry of Women Affairs (MoWA) during 1389:

In 1389, monitoring system of National Action Plan for Women of Afghanistan (NAPWA)

established.

In total 186,409 women have received literacy training, attended workshops, campaigns,

technical and vocational trainings in the capital and provinces.

3,428 cases of violenceagainst women have been handled and solved by the justice

organizations.

9 buildings for the directorates of the Ministry of Women Affairs in 9 provinces have been

completed.

Women gardens in Sar-e Pul province have been constructed.

4.2. Environment

Key achievements of the Environment Office during 1389:

The committee of climate change with the participation of government representatives has been

created.

The living diversity strategy and national plan for live diversity have been approved.

Arrangement of meetings of the coordination committee and higher commission for controlling

of air pollution in the country.

Membership in Islamic Countries Environment executive committee.

Establishment of sub-national consultation groups of Environment in 20 provinces.

4.3. Anti-Corruption:

Anti-corruption law reviewed and aligned to international conventions.

Anti-corruption strategy mainstreamed to operation plans of governmental agencies.

Joint monitoring and evaluation committee consist of local and international experts for anti-

corruptions purposes established.

According to article # 154 of national constitution, properties of 1900 high ranking positions

recorded and disseminated.

Simplification process of regulations and licenses commenced.

Complains boxes have been installed to all governmental agencies.

190 corruption cases have been recorded, and 19 cases rejected.

Public awareness rose via audio and video clips on preventing corruption disseminatedthrough

media.


4.4. Counter Narcotic:

The MoCN achievements during 1389 are as follow;

Poppy productivity reduced to 29.2 kg per hectare, which is 48% less than 2009.

Destroying 2316 hectare poppy cultivated land.

Four provinces (Kunar, Zabul, Herat and Laghman) are near to rate of zero on poppy

cultivation.

Poppy cultivation has been reduced to 20% in Urozgan, 45% in Badghis and 7% in Helmand.

Opium production in 2010, 3600 metric tons reported, which is half of the 2009 production.

Production in ruined area has been reduced to 60-90%.

6479 addicted people have been treated in 1389.

125807 addicted people benefited from harm reduction services.

3270 addicted people got vocational trainings.


Part Five: Challenges and Recommendations:

5.1. Challenges

Some basic observations

The ANDS with its three pillars security; good governance, justice, rule of law, human rights; and

socio-economic development was the best option the country had when it was created in 2005. But it

lost much of its credibility over time as some major deficiencies are built-in in the overall concept and

some became apparent when the development partners and the government of Afghanistan started

implementing it.

The ANDS is based on ethical values which are largely imported from western countries and are not

fully shared by all parts of the Afghan citizens and members of the government of the Islamic Republic

of Afghanistan.

External support was largely provided under military aspects and much less under OECD aid principles.

Much of the capacities at the national and sub-national government are still to be built and many

ministries and government institutions were not given the opportunity to learn by doing or even more

important to learn by mistakes. In fact they were largely bypassed by donor institutions. Whenever

possible, donors used off-budget programs and non-governmental institutions to channel their support

to Afghanistan or certain areas of the country, even if the implementing NGOs were as inexperienced as

government institutions. Especially at sub-national level NGOs were quite often given functions which

are part of government institutions in a market-oriented economic system. Small impact-oriented

projects were used to quickly create income and jobs, but opportunities to build the national or sub-

national capacities for a prosperous and sustainable long term development are not yet fully used and

projects in this area are often not designed for our difficult current situation.

Projects and programs were designed and grouped in a more and more sophisticated way and finally

organized in clusters in which certain ministries were supposed to take a lead over other ministries.

Hence, the approach was not accepted by those ministries which were not in the lead of their clusters.

The approach failed more or less.

The implementation of the ANDS was so much focused on projects and programs (“projectitis”) that in

the initial period we could hardly realize that many of those projects were not needed, but donor-driven.

In fact we are over aided and many projects come under the umbrella of policies which are given to the

country.

For some time we did not realize that the country - which was governed many years under a centrally

planned system - had not yet systematically started the transformation process to a market-oriented

economic system. The government has not yet developed its own set of economic objectives based on

our guiding principles, neither for the economy as a whole nor for individual sectors. The current role

of many government institutions is close to a neutral body which blindly implements projects financed

by external supporters to achieve objectives which are given by donors. Some programs based on

international experience and international norms are not fully understood and shared by our citizens and

are not yet embedded in our national culture.

Our statistical system does not yet allow us analyzing all aspects of the economic development, but

even in the absence of proper statistical analyses we observe:

The unemployment rate is still at a shockingly high level which cannot be accepted from a

socio-economic point of view. It continues being a major source of political and social

instability. Especially the youth unemployment rate is a very serious problem because the


future development of the country will depend very much of productive jobs for the young

generation.

The private sector has good potentials, but it is still in its early phase of development and does

not absorb the huge number of young job seekers. It seems that a limited number of companies

are able to make considerable profits partly based on the absence of proper competition and all

sorts of bottlenecks which are translated into high prices and huge markups. All this contributes

to a quickly worsening income distribution.

Much of the profits and available capital is not used to increase the productive capacities, to

build up new private companies and to train the staff accordingly, it flows out of the country or

is rather used to invest in the housing sector in Kabul or our major cities for very specific target

groups while growing shares of the citizens have to rely on the informal housing sector with

very poor qualities. Huge investments are driving the construction sector, which is a positive

development, but it drives also asset inflation. In fact we observe a considerable unhealthy

bubble in the housing market.

Our banking sector is still seriously underdeveloped. It is not yet able to channel loans to

promising start-ups, private companies and households or private or public long term

investment.

We also observe that the regional and income disparities are rising quickly. To a certain extent

this is a normal trend in a market-oriented developing country in the early phase. But extreme

high profits in a small share of the private sector in combination with poor regulations and a

very low level of income in the public sector can quickly open the door for illegal behavior

(including corruption). Strong regional disparities started resulting in domestic migration and

will overcharge the capacities of the municipalities to provide proper services for all.

To sum it up: Our key problem is that we have not yet developed our own economic and social system

to transfer us from having a consumption based economy to a product based economy.

Given the ANDS as it is there are more challenges hampering the implementation of programs and

projects, which can be summarized as follows.

1) Donors’ coordination and strengthening of national budget:

Based on the recent report of the MoF, only 18% of the total funds from 2002 to 2010 have been

spent through the national budget and 82% of the available external support has been managed by

donors. Therefore, the role of the budget units of the government in terms of budget execution in

implementation of the national development strategy is very limited.

The coordination mechanism between the government and the international donors has not been

effective as expected or does not exist at all.

Off-budget projects are difficult to monitor and the budget to finance maintenance and recurrent

costs for those projects is often not properly considered.

There is a monitoring and reporting mechanism for on-budget projects, but there is no proper

monitoring and accountability for off budget projects. Impact and efficiency of off-budget projects I

not known.


2) National Budget execution:

Integration of multi-year projects budget into year 1389 budget, lack of payments and/or delayed

payments for the approved projects by donors and signing of the external budget projects during the

year with donors, caused challenges of low execution of the budget units.

Lack of interest of the international companies participating in biddings and lack of timely payment

of the dues, which could inject negative impact on the project implementation process.

Bureaucracy and lengthiness of budget process in the MoF, problems with the procurement system

and diversity of procurement systems of the donors, and lack of coordination between the ministries

and donor communities are bottlenecks to be handled.

Withdrawal of professional and capable staff from the government institutions and joining NGOs

and private sectors is another issue to be considered.

Weak capacity of the employees within the ministries and other government institutions.

Lack of follow up on assigned task of certain employees, and rapid change of the expert staff,

makes the whole process weak.

Ministries’ work plans are not existent or are not fully harmonized with the goals, visions and

objectives of the sector strategies.

Security problems in some areas delayed the implementation of projects.

At sub-national levels privately-owned companies are often not yet fully informed about

government rules and regulations and some are not yet qualified to prepare offers in due time and in

doing the invoicing

3) Coordination between budget units and progress of activities:

Overlapping of responsibilities and lack of coordination among different ministries under one

sector.

Rapid Change of national policies with creating parallel ad hoc based structures, without any

logical analysis (duplication of the same structures).

4) Lack of political support for Monitoring and Evaluation of the National Development

Strategy of Afghanistan:

Adoption of the NPPs which has been developed through cluster approach to the sectors results

monitoring mechanism.

Some sector ministries are not yet aware of the importance of M&E and did not yet develop the

baselines and targets to measure their sector results, and it often causes unreliability of M&E.

Lack of mechanism to reward good performer and punish bad performer based on monitoring and

evaluation findings.

5) Weak management of market economy, and weak facilitation to create an enabling

environment for private sector development to produce goods and services in demand on the

local and international markets:

6) Security and fight against international terrorism: to make sure there is a minimum of

stability for implementation of development projects.


5.2. Recommendations:

- Ownership of the ANDS

Quickly increase the level of ownership of the ANDS. Increase the spending capacity of the eight key

line ministries to a level of close to 90% of the budget execution rate.

Strictly follow the Afghan priorities in spending government budgets. Continue increasing the

revenue/GDP ratio by 1-2 per cent per annum to get less dependent on external support.

Build the administrative capacities to be able to deliver essential services to the citizens which are now

partly provided by NGOs.

Monitor NGOs to make sure that they follow Afghan priorities and make sure that they will not

continue overtaking key functions of the government. It is suggested to give annual budget ceiling to

NGOs based on their capacities and performances.

- Administrative and economic reforms

As per constitution of Afghanistan, free market economy is adopted as the economic system for

Afghanistan. Since 2011 Afghanistan has experienced economic recovery and has made great strides in

number areas. The government of Afghanistan has also sought to set its own development agenda in

the form of ANDS and is in the process of its implementation, rather than ceding it to aid organizations.

However, towards this end and sustainable economic development it is also paramount that there are

policies (procedures and protocols) and programs in place in view of the peculiarity of the socio-

economic and political realities of Afghanistan. This begs to require a frame work of achievable

policies with specific economic objectives. For toward this the following suggestions are

recommended:

Establishment of an Economic Board advising on economic policies

Formulation of long-term economic plans within the frame work of the country’s economic

system focusing on eradication of unemployment and poverty, also seeking to increase

production, creating equal economic opportunity with a long term trajectory of population

increase.

On the bases of economic reform, parallel and complementary administrative reforms are

needed in order to diffuse overlaps, duplications and inefficiencies between principle

administrative unit(s) and others. In some case creation of new administrative unit(s) might be

required in order to properly allocate administrative and responsibility lines.

Strengthening and development of public private partnership, initiation of specific policies

reconciling and bridging negative balance of trade, support for the development and growth of

industries and entrepreneurship requires strong attention and be placed at the center of long

term policy frame work.

Reviewing of the current banking system, and establishment of a development bank for

Afghanistan to finance long-term investment programs in the country.

The current mechanism of aid coordination has to be revisited. A need for review and candid

consultation between the government and international development partners on effective

spending of aid based on and underpinned by long-term socio-economic initiatives, increase

ownership and how aid is spent.

Amelioration toward better coordination and improvement in cooperation with regional and

international economic development organizations. Accordingly, allocation/assignment of its


charge and responsibility to an appropriate unit is critical to coordinate and supervise all related

activities externally, and across all sectors and ministries within.

Management and standardization of statistical system in the country need to be prioritized.

It is important and is a pre-requisite that administrative reforms are invoked through attainment of

honest and committed, professional, and capable human capital in order to realize meaningful and

positive improvements and reform socio-economically. Although, the Commission for Administrative

and Civil Services Reforms have adopted number of programs towards this end, however, there has

also been a down-side/negative impact that has resulted in loss of expert and professional persons.


REFERENCES

Afghanistan Research and Evaluation Unit, The A to Z Guide to Afghanistan Assistance, 2011

Afghanistan, National Risk and Vulnerability Assessment, 2007/2008

Civil Military Fusion Center, “Use It or Lose It”, Budget Execution in Afghanistan, April 2011

European Union, Summary of the National Risk and Vulnerability Assessment 2007/08: A Profile of

Afghanistan, 2009

Islamic Republic of Afghanistan,

Islamic Republic of Afghanistan, Afghanistan National Development Strategy. An Interim Strategy for

Security, Governance, Economic Growth & Poverty Reduction, Volume I, II

Islamic Republic of Afghanistan, Central Statistical Organization, Year Books

Islamic Republic of Afghanistan, Ministry of Finance, Development Cooperation Report 2010

Islamic Republic of Afghanistan, Ministry of Finance, Joint Evaluation of the Paris Declaration, 2010

Islamic Republic of Afghanistan, National Budget 1389

Kabul International Conference on Afghanistan 20 July 2010, Afghanistan National Development

Strategy, Prioritization and Implementation Plan, Mid 2010 – Mid 2013, Vol. I, II

Ministry of Economy, WB, Poverty Status of Afghanistan, 2010

Ministry of Economy, World Bank, Provincial Briefs, 2011

World Bank, Afghanistan Economic Updates,

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