The Ministry of Finance (MoF) has drafted a strategy to properly manage the state-owned banks, boost the services of the banks, provide further facilities in loans and bring fundamental reforms to government banks, the Finance Ministry official said.

The strategy has been approved by the High Economic Council and the ministry is working on its implementation, the MoF spokesman Ajmal Abdul Rahimzai said on Wednesday.

He said the decision has been made based on an agreement between Afghan government and International Monetary Fund.

“The strengthening of state-owned banks will support the private banks and in general it will support the private sector. Fortunately, the strategy has been approved by the High Economic Council of Afghanistan. We are working on its implantation,” he said.

Economic affairs analysts said the move will improve banking services, but the analysts called on government to increase monitoring on the banks.

“If we want to have a strong, healthy and effective economy, we should have an accurate and proper baking system. The banking system in the country requires serious attention,” said Abdul Wase Haidari, an analyst in banking affairs. 

At least 17 private banks aand four state banks including the Central Bank of Afghanistan are operating in the country.