The international aid effort in Afghanistan is in large part “wasteful and ineffective”, with as much as 40 per cent of funds spent going back to donor countries in corporate profits and consultant salaries, Kabul-based charities will say on Tuesday.

At the same time, the administration of Hamid Karzai has failed to tackle high-level corruption in a government that relies on international handouts for 90 per cent of public spending, a report by the Agency Co-ordinating Body for Afghan Relief (Acbar) says.