PURPOSE  PROVIDE A COMPLETE AND CONSISTENT CONCEPTUAL FRAMEWORK FOR MEASURING THE ECONOMIC ACTIVITY OF A NATION.  MONITOR ECONOMY PROFARMANCE  ENABLING INTERNATIONAL COMPARISON  ADOPTING CONCEPTS AND FRAMES FOR THE ECONOMIC STATISTICS

FRAMEWORK  Regular Activities: GDP by industrial origin -Current price - Constant prices GDP by Expenditure categories at (CP) Sectoral Composition of GDP Annual percentage change GDP implicit deflator  Other Activities

Currently, the national accounts estimates follow the concepts, definitions, and classifications of the SNA 1993, as the basic data availability permit. Definitions, and classifications

Compilation approaches i. PRODUCTION APPROACH ii. EXPENDITURE APPROACH

ESTIMATION OF GDP  GDP(FC): Gross Domestic Product (GDP) is the value of all goods and services produced at factor cost (FC) in the economy during a particular period.  GDP (MP) = GDP (FC) +Net Indirect taxes

GDP estimates are compiled annually on the Solar year basis ending March 20, e.g. for the year 1387 the covered period is from 21 March 2008 to 20 March The GDP estimates are published once a year in the Afghanistan Statistical Yearbook. Compilation Period

Prices All the producers’ prices (PR) are based on CPI survey. The percentage different between farmer and market (mainly profit margin, transportation cost, and taxes) prices are determined for each item (between 15-30% depend on the goods and the distances). The annual percentage change in consumer price index (CPI) of each item in food (more than 100 items) is used for the annual change in producers’ prices.

Agriculture Agriculture is the most important sector in the economy with more than 80% of population actively involved in it. Due to the high level of subsistence farming in Afghanistan.

CROPS Gross Value Added: Provincial Agriculture & MOA,WFP &FAO (FAAM), Sources: Seeds, Fertilizer, Pesticides, Water, Transport Charges, etc. Intermediate Consumption : Rice, Wheat, barely, Sugarcane, Sugar beet Maize, etc. Pulses, Vegetables, Fruits, Oil seeds, potatoes, etc. Major crops: Minor crops: The production approach is used to arrive at value added.

LIVESTOCK The production approach is used to arrive at value added. Gross Value Added: Livestock Ministry of Agriculture, FAO WFP etc. Sources: Roughages (green and dry), Concentrates (Grains, Oilcakes), Grass & Grazing, salt, Medicines, etc. Intermediate Consumption: Cattle and their products Poultry and their products Composition:

FORESTRY Gross Value Added: Ministry of Agriculture Sources: Seeds, plantation, fertilizer, etc. Intermediate Consumption: Forestry and logging includes 1) logging, 2) charcoal, and 3) firewood Composition: The production approach is used to arrive at value added.

MINING & QUARRYING Gross Value Added: Ministry of Mine and Economics Statistics Departments. Sources: Ratio of IC/GO Intermediate Consumption: Mining and quarrying cover the extracting and preparation for further processing of coal, natural gas, salt, sand, stone, gold, Birit, Chon precious stone gash, Composition: The production approach is used to arrive at value added.

LARGE-SCALE MANUFACTURING Sources: Manufacturing in Afghanistan are mainly Food, beverages, and tobacco, Textile, wood production, paper products,etc. Composition: The Ministry of Industry, Ministry of Light Industry, and Ministry of Commerce provide manufacturing production and producer prices data for public and private enterprises

CONSTRUCTION Construction consists modern construction in public sector,rehabilitation, project in progress, and new projects, modern private sector and traditional construction. Data sources : ED collects data from Ministry of Public Work, Ministry of Finance, private sector construction and others. Data for traditional construction are derived based on population census, number of household, and cost a typical house in rural area. IC: 55% ratio VA: Production approach

ELECTRICITY, GAS DISTRIBUTION & WATER SUPPLY Gross Value Added: The main source of data for this group is Ministry of Industry and Electricity. Sources: Fuels, Oil, Gas, Water, etc. Intermediate Consumption: This group include the generation of hydro—power, and the transmission, of electricity, the manufacture of gas,natural gas, production and distribution of water. Composition: The production approach is used to arrive at value added.

TRANSPORT, STORAGE & COMMUNICATION production approach Gross Value Added: Ministries of Transportation and communication Economy dept,of CSO and National Accounts ad-hoc survey. Sources: Air transport, land Transport and communication. Composition:

FINANCE & INSURANCE Gross Value Added: from Money Exchange Association, DAB, CSO and Insurance CO. Sources: Finance sector covers,monetary institutions, other financial institutions and Insurance. Monetary institutions include Central Bank, commercial banks and other private banks. Composition: The production approach is used to arrive at value added.

WHOLESALE & RETAIL TRADE Composition:Wholesale and retail trade is estimated on the basis of assumption on domestic goods production and imports Sources: Data sources and methodologies: Base on interview of traders: 40% of agriculture 70% of industry production 50% of exports and 80% of imports are for wholesale and retail trade Value Added: Total value of trade margins applied on the marketed portions of Agriculture and Industrial Output as well as Imports.

OWNERSHIP OF DWELLINGS Coverage: Housing Units (rented as well as self occupied) and in urban and rural areas Sources:From the population, pre housing list survey of average prices of dwelling, their average economic life, and the rent price index in the CPI Value Added:Production Approach

Expenditure approach Total final consumption expenditure is the sum of private and government consumption. Government consumption data are drawn directly from the national budget. Currently only current prices of GDP by expenditure are estimated by indirect method of carry over the GDP from production side and making the private consumption (or final consumption expenditure of household) as residual including data discrepancies and change in stocks.

Surveys needed : National Risk and Vulnerability Survey Census of Agriculture Integrated Business Establishment Survey Census of Establishments Small-scale survey on Agriculture Expanded Consumer Price Survey

Future Plan  Use the upcoming result of the Integrated Business Enterprise Survey (IBES) to improve basic data for NA.  Plan to compile the integrated economic accounts.  Improve 1993 SNA  Develop Sequent account  Institutional units  Other recommendation of SNA93/2008

Technical assistance Experienced expert to review the system and make plan for future

M. Ibrahim Naimi Head of N.A,and Price Statistics Dept.