This is the second PFM Performance Assessment for Afghanistan, based on information as of December 2007, two and half years after the first assessment of June 2005. This second assessment aims to measure reform progress during this period and to identify outstanding issues. Comparison between the first and second assessment shows significant improvements within the area of PFM. The assessment touches upon the areas of legal frameworks, technical expertise, credibility, comprehensiveness, process, long term fiscal planning, effectiveness and audit, among others. It also incorporates international comparisons.