WHILE COMPLAINING ABOUT ELECTION DELAYS, AFGHAN FINANCE

C O N F I D E N T I A L KABUL 003266

SIPDIS

E.O. 12958: DECL: 10/13/2019
TAGS: EFIN ETRD PGOV AF
SUBJECT: WHILE COMPLAINING ABOUT ELECTION DELAYS, AFGHAN FINANCE
MINISTER LOOKS AT WAYS TO ADVANCE REFORMS

Classified By: CDDEA Ambassador E. Anthony Wayne for reasons 1.4 (b)
and (d).


1. (C) Summary: Finance Minister Omar Zakhilwal said delays in
reporting election results have hurt commerce and prompted conspiracy
theories among Afghans. (Septel covers his remarks about politics.)
The Afghan Finance Minister said he is proceeding with plans to
improve delivery of government services, streamline procedures, and
enhance revenue collection and was preparing a new initiative to
President Karzai later October 13. In addition, Zakhilwal told
Ambassador Wayne that he had met with the Pakistani Finance Minister
on the margins of the Istanbul Bank/Fund meetings and his counterpart
had promised to cooperate in helping move the transit trade agreement
talks ahead. Zakhilwal said he is not certain how much influence his
Pakistani counterpart has over the transit trade negotiations,
however. End summary.


2. (C) Meeting October 13 with the Embassy's Coordinating Director
for Development and Economic Affairs (CDDEA),Ambassador E. Anthony
Wayne, Afghan Finance Minister Mohammed Omer Zakhilwal said the delay
in election results has fueled "conspiracy theories" among Afghans.
He claimed the delay had depressed the business climate and worsened
the security situation while increasing anger among Afghans. (More
details are reported septel.)


3. (SBU) Despite the on-going political situation, Zakhilwal said the
Finance Ministry is preparing a proposal aimed at improving delivery
of government services, stream-lining office procedures, and
enhancing revenue collection. Zakhilwal said he will select five to
ten service areas where it is possible to improve GIRoA performance
within a year. Zakhilwal noted he will soon present his list of
potential improvement areas to the relevant ministers, with the
recently commercialized electricity utility DABS, vehicle
registration procedures, customs, and services to Hajj travelers at
the top of his list of priorities. Once the Cabinet approves his
proposal, Zakhilwal plans to approach donors for assistance. He
called for more conditional aid, which he said helps him gain cabinet
approval for reformist projects. Zakhilwal said he intended to
present this idea to President Karzai later October 13 as an
initiative which the President could announce when beginning his
second term. He believed this could be a way to demonstrate and
build popular credibility, as there is little that irritates people
more than having to pay bribes and extra fees to get normal services
provided.


4. (SBU) Zakhilwal said he had talked with the Pakistani Finance
Minister on the margins of the Istanbul World Bank/ International
Monetary Fund meetings. The Pakistani Minister, Zakhilwal reported,
had promised to help resolve outstanding issues in the
Afghan-Pakistan Transit Trade Agreement talks, including the addition
of access to the Wagha Indian border crossing to the agreement.
Zakhilwal noted, however, that he is unsure how much influence his
Pakistani counterpart has over the substance and tenor of the talks.
Never the less he would try to use this connection to move things
forward. Zakhilwal added Pakistan promised to build a rail link to
Spin Boldak and rehabilitate an existing rail link to Torkham Gate.

EIKENBERRY