Islamic Republic of Afghanistan - Enhanced Integrated Framework ...

commitments to increase the goods andservices sourced within the country.• Legislative Reform: Enact and implementkey commercial laws and amendments toestablish the basic legal and regulatoryframework that will encourage private sectorinvolvement in social and economic developmentand consistent with the Afghanconditions. ANDS priorities actions include:ooooThe Government will introduce andimplement the remaining commerciallaws included in the AfghanistanCompact benchmark.The Government will consult with representativesfrom private business andcivil society in a meaningful and timelymanner during the process of draftingpolicies and laws.The necessary steps will be taken to establishthe authority of mediation andarbitration tribunals to resolve privateprivateand private-public disputes, includingland issues.The Government will ensure that nolaw will be implemented unless it hasbeen published in the newspapers, andmade available electronically and inhard copy to the public. Regulations,including import tariff rates, will bemade readily available on the Ministryof Finance website.• Administrative Reform: The Governmentwill ensure that ministries and agencies areable to competently administer commerciallaws and regulations in an unbiased andpredictable manner. These actions will include:ooooInvest in capacity development for NationalAssembly so that MPs are betterinformed and supported in their roleand understanding of proposed laws.Ensure the competency and transparencyof tribunals by establishing standardsand building the capacity of arbitrators,mediators and lawyers.Undertake financial audits of stateowned assets and corporations.Implement effective programs to provideinstitutional strengthening andcapacity development throughout thepublic sector.• State owned enterprises: The Governmentwill continue the program of privatizationand corporatization of state owned enterprises,a process that is presently on schedule.This will: (i) improve the level of efficiencyin the economy; (ii) assist in eliminatingcorruption; (iii) encourage better resourceallocation; and (iv) generate increasedgovernment revenue.• Formalizing private sector operations: TheGovernment is encouraging firms to formalizetheir activities by introducing taxnumber identification and applying commerciallaws and regulations. Considerationis being given to innovative efforts tochannel some public funds now being usedfor vocational training through properlyregistered firms in compliance with taxlaws for their use in financing training fortheir employees in properly accredited vocationaltraining programs.• Improve private sector access to finance:The Government will implement a well definedstrategy to expand the availabilityand range of financial products and services,especially targeting small and mediumenterprises. Priority actions include:ooooPassage and enactment of four key financiallaws: Secured Transactions,Mortgage, Leasing and Negotiable InstrumentsLaws.Establish an independent banking andbusiness training institute as a jointcommercial bank – DAB initiative.A credit information bureau will be establishedto facilitate commercial andconsumer lending.The financial tribunal will be establishedto provide swift legal resolutionof financial disputes.• Maintain a pro-trade environment: TheGovernment remains committed to maintainingtrade policies with low barriers forimports and exports and a liberal foreignexchange system. The Government’s tradepolicies will take into account the need toincrease domestic revenues and supportincreased domestic production by the privatesector. Pressures can be expected toarise from some groups for tariff protec-Economical and Social Development 75