Islamic Republic of Afghanistan

The three-year arrangement under the Extended Credit Facility (ECF) for SDR 32.38 million (US$44.9 million, or 10 percent of quota) was approved on July 20, 2016 and extended to end-2019 on December 7, 2018. The first four reviews under the ECF were completed on time. The arrangement supports the government’s reform agenda—as outlined in the Afghanistan National Peace and Development Framework (ANPDF)—to lay the foundation for higher growth and job creation and catalyzes donor funding. The security situation remains difficult alongside the ongoing U.S.-Taliban peace talks, which have improved prospects for a long-awaited political settlement. So far, the talks have focused on an eventual withdrawal of U.S. troops from Afghanistan and Taliban guarantees that Afghanistan will not be used as a base for terrorists. While the talks have so far excluded the Afghan government, the U.S. has insisted that any final deal would require “intra-Afghan” consultations and the Afghan government sign-off. Presidential elections have been postponed a second time, to September 28, 2019, partly to allow for electoral system reform. The November 2018 Geneva donor conference launched a World Bank-led effort to support the authorities in formulating a post-peace settlement economic development plan.