According to a statement issued by IMF, it had reached to an agreement with Afghan government and thus the aid disbursements will be resumed after almost two years when the aid disbursements were suspended after the fears of corruption in departments of government. The notorious corruption case of Kabul Bank added to the severity of the situation in which millions of dollars of Afghans were plundered by the top officials of the bank, resulting in the bankruptcy and failure of the bank.

IMF or International Monetary Fund’s decision came after the visit of IMF officials to the capital where they met the important government officials of the country. According to IMF, Afghan officials had agreed upon the conditions of IMF that were meant for the transparent utilization of the aid grant from the International Funding agency. The statement said that Afghan government had agreed upon certain conditions for the release of funds, worth mentioning were tightening of the monetary policy, special ways to submit the monetary legislation to the parliament and strengthening the capital reserves of the central bank.

Afghan officials also agreed with IMF to impose VAT (Value Added Tax) from 2014 and increasing the national revenue by strengthening custom measures.

This news has a bright prospective after the report issued by Transparency International in the end of 2012 resulted in a great uproar against corruption in government institutes of Afghanistan and country was included in one of the most corrupt nations of the world. Commenting on the decision of IMF, Finance Ministry adviser Najibullah Manili said that the said act would not only help in strengthening the financial position of Afghanistan but would also act as a guarantee card for other donor countries and agencies of the world which would thus bring boosted activity in the Afghan economy.

Report of IMF also found the general economic progress of the country to be satisfactory and optimistic and thus better performance was expected in the future in the growing economy of country. There were some concerns on the rate of inflation in the country but overall performance and growth of the economy was termed to be hopeful, good enough to cover the effects of inflation in the country.

IMF’s direct intervention in the matters of Afghan economy brings into light a sad fact that Afghan officials are not able to control internal corruption and foreign donors come up with serious conditions when they see their funds being wasted. They try their best that the funds being transmitted to Afghanistan should be utilized to meet their specified objectives.

Now it is necessary that Afghan government should also adopt strict measures to curb corruption in government offices and for this we should not wait for any kind of external intervention. On the other hand, it is needed that conditions of IMF should be met honestly so that the goals and expectations from the future of economy should be met and the smooth progress of the economy of the country should be ensured.