Afghanistan grows 12-pct, inflation 6-pct: IMF

Feb 05, 2013 (LBO) – Afghanistan’s economy is estimated to have grown at a blistering 12 percent rate in 2012 helped by lower inflation of 6 percent and a good harvest, the International Monetary Fund said. Afghanistan was expected to submit a value added tax law to parliament and also fix Kabul Bank.

The IMF has an extended credit facility (ECF) program in Afghanistan and a team had conducted a combined second and third review from January 19 to February 02.

“Discussions focused on maintaining macroeconomic stability and structural reform momentum in 2013,” team leader Paul Ross said in a statement.

“On the budget, there was agreement on the need to restore momentum to revenue mobilization through measures to strengthen customs administration.

“Second, it was agreed that some tightening of monetary policy was appropriate to maintain price stability and protect the international reserves position.

“Third, there was agreement on reforms to strengthen the financial sector and economic governance, and to mobilize domestic revenue.”