7 % increase in revenue collection projected for new financial year

With Afghanistan’s national revenue generating lagging, Afghanistan is continuing to rely on foreign donors for the years to come. During last year’s presidential elections, the country astute financial challenge as it had huge budget deficit at a difficult juncture of time.

The ministry of finance (MoF) says to collect 38 billion Afghanis revenue since the beginning of the financial year.

According to officials in the ministry of finance, the figure shows seven percent increase compared to the same period in the last year.

Spokesman of the finance ministry, Abdul Qadir Jilani said that a computerized system of taxation is currently activates to prevent corruption in the customs and traders can pay their taxes through internet.

“The activation of computerized system, hiring professionals staffs are the priorities of the new leadership,” Jilani said.

The aim for the current financial year has been anticipated 120.4 billion Afghanis.

According to officials in the ministry of finance, now foreign investors are eager to invest in mining and construction sectors.

A sharp fall in international funding will create enormous challenges for the government of Afghanistan. This is a real scenario particularly if Afghanistan fails to development viable sources of national income in the coming years.

The economy of Afghanistan has improved significantly since 2002 due to the infusion of billions of dollars in international assistance and investments, as well as remittances from Afghan experts.

Afghanistan’s relation with its major financial allies is key for the future financial and economic stability.

As part of the Kabul-Washington bilateral strategic agreement, the US has committed to continue supporting Afghanistan’s security sector and its development for the next decade.

However, the relations between Kabul and Washington has seen ups and downs during recent years of former president Hamid Karzai’s ruling as he refused to sign a security agreement with the US.

It risked a robust relationship between the two countries which is vital for survival of Afghanistan against the hardheaded insurgency. In addition to seeking investments from regional countries, Afghanistan needs to develop robust relations with its key international backers such as the United States and the European Union.