The report, "Afghanistan's Fight Against Corruption: The Other Battlefield", cited positive anti-graft steps by the government, including the formation of an Anti-Corruption Justice Centre (ACJC).
But the fight "will not be won overnight", it said.
"Corruption has affected all aspects of life in Afghanistan, undermining public trust and confidence in government institutions, and hindering the country's efforts to become self-reliant," it stated.
Progress made "has been stymied by nepotism, political favouritism, and other external influences on recruitment decisions," the report continued.
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Afghanistan ranks a lowly 169th out of 176 countries in a corruption index released by Transparency International.
Graft permeates nearly every public institution, hobbling development despite hundreds of billions of dollars of foreign aid over the past decade, sapping already scant state coffers and fuelling insecurity as alienated Afghans veer towards the Taliban.
Last May, he established the ACJC in an effort to bolster the legal system's ability to tackle corrupt ministers, judges and governors, who have largely been immune from prosecution.