Lusaka – The Zambian government and the International Monetary Fund (IMF) have agreed that urgent implementation of policy adjustments are essential to restoring the country’s fiscal and debt sustainability.
Fredson Yamba, Secretary to the Treasury said this on Wednesday following an IMF staff team’s conclusion of its visit to Zambia.
Yamba said the two parties held cordial talks on the recent developments in the Zambian economy, the government’s policy response and the progress made in the implementation of austerity measures.
He said the two parties acknowledged that the country continues to face macroeconomic vulnerabilities due to the impact of climate change on electricity generation and food production.
Adding that the vulnerabilities have passed-through effect on the rest of the economy.
“Based on the assessment of the fiscal situation, the IMF and the government further agreed that urgent implementation of policy adjustments related to debt management and fiscal matters, will be essential in restoring the country’s fiscal and debt sustainability,’’ he said.
Yamba, however, reiterated the government’s commitment to continue implementing measures that have been pronounced in the past aimed at restoring the country on a high growth trajectory and ensuring debt sustainability.
He added that the government will maintain close contact with the Fund in finding solutions and ensuring that policy interventions are undertaken to address challenges and vulnerabilities the country is currently facing.
“The government will use the outcome of the just-ended IMF staff visit to build a firm basis for a defined sustainable macroeconomic path.
“This is critical for the restoration of macroeconomic stability and forms a basis for future engagement with the Fund,’’ he stated.