Introduction of Economic Fiscal Policy General Directorate

The overall mandate of MFPD is to provide policy advice and strategic support for the management of the economy and public finances through formulation, implementation, monitoring and evaluation of sound macroeconomic and fiscal policies and programs in Afghanistan. MFPD shoulders a very important responsibility of supporting the Ministry of Finance to fulfill its objectives of Afghanistan’s fiscal management as outlined in the Public Financial Management Law of Afghanistan.

Key Functions:

• Generating Medium-term Macro-Fiscal frameworks with reliable and timely forecasts and projections for the use in macro-fiscal analysis, budgeting, and decision making.

• Advising the leadership of the Ministry of Finance and the Government on macroeconomic and fiscal policies of the country.

• Development of annual fiscal strategy paper (FSP) that act as a guiding document for the national budget with clear fiscal objectives and macroeconomic parameters.

• Liaise with Da Afghanistan Bank (Central Bank of Afghanistan) on technical and analytical matters related to macroeconomic framework to ensure policy objective consistency between the monetary and fiscal authorities and effective policy coordination.

• Maintain strong working relationships with multilateral development intuitions particularly the World Bank, International Monetary Fund, and the Asian Development Bank to make sure that their engagement in Macro-fiscal affairs with the Government of Afghanistan is coordinated in an effective manner.

• Deal with all matters related to fiscal policies including domestic revenue mobilization, public expenditure management and rationalization, public debt, and fiscal sustainability analysis.

• Ensure the effective assessment and management of the macroeconomic and fiscal risks emerging from State-Owned Corporations, Public Private Partnerships, & other public entities.

•  Publishing quarterly macro-fiscal bulletins on the state of the economy and fiscal position of the government.

• Initiate Public Financial Management reforms and facilitate them through the public sector by closely working with international partners and development institutions.

• Dissemination of information, data, statistics, reports, and statements on key macroeconomic and fiscal indicators in an accountable and transparent way.

Organizational Structure: