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Afghanistan To Request for Re-Validation after EITI Suspension

in Afghan Business

Afghanistan To Request for Re-Validation after EITI Suspension

Afghanistan was temporarily suspended from the Extractive Industries Transparency Initiative (EITI) in January 2019 after demonstrating “inadequate progress” in implementing the required standards.

The country intends to request re-validation in the Global Conference in Paris in June 2019.

Afghanistan is given time until July 18,2020 to show meaningful progress in order to restore its candidate status.

“Suspension is temporary mechanism,” said EITI chair Fredrik Reinfeldt in a statement in January 2019. “Afghanistan is still an EITI implementing country and we look forward to working with the government, industry and civil society organizations to build on the recent momentum in improving transparency. The Board decision includes a clear set of corrective actions to guide this work.” 

Afghanistan joined the EITI in 2010. The country is rich in natural mineral resources, which include vast reserves of copper, iron-ore, rare-earth metals, gold, gemstones and marble. Deposits have been estimated to be worth over USD 1 trillion. The country’s energy resources consist of natural gas and petroleum. The realization of Afghanistan’s substantial extractives potential could generate significant revenues for the government, improving economic development and reducing the country’s heavy dependence on aid.

Afghanistan’s central government is hampered in its ability to manage and enforce revenue collection from the extractives sector and production is constrained by the precarious security situation. Despite these challenges, Afghanistan has made progress in implementing the EITI and has notably been using the data as a diagnostics tool for its cadaster system, a way to strengthen the government’s revenue collection and to identify challenges and propose reforms to public auditing practices.



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