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IMF and Govt agree Zambia continues to face macro-economic vulnerabilities

THE government says it will use the outcome of the just ended IMF staff visit to build a firm basis for a defined sustainable macroeconomic path, which is critical for restoration of macroeconomic stability and forms a basis for future engagement with the Fund.

An International Monetary Fund (IMF) team led by Mission Chief, Dan Ghura has completed its staff visit to Zambia.
The team has been in the country from November 13.

Secretary to the Treasury Fredson Yamba said during their tour of duty, the team conducted data exchange and policy consultations on measures that the government was undertaking to address some of the current macroeconomic challenges.

Yamba said the IMF team also discussed with the government, recent developments in the Zambian economy such as the macroeconomic situation, the government’s policy response, and the progress made in the implementation of austerity measures.

He said the IMF team met President Edgar Lungu, the Bank of Zambia, the Zambia Revenue Authority, Cooperating Partners, Civil Society Organisations and the Business Community.

Yamba said both the government and the IMF acknowledged that the country continues to face macroeconomic vulnerabilities.

He said key among them was the impact of climate change on electricity generation and food production.
Yamba said the parties agreed that the stated vulnerabilities have pass-through effects on the rest of the economy.

He said 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, would be essential in restoring the country’s fiscal and debt sustainability.

Yamba said during the various policy level and technical sessions, the government reiterated its commitment to continue implementing measures that have been pronounced in the past that are aimed at restoring the country on a high growth trajectory and ensuring debt sustainability.

He said the government would maintain close contact with the Fund in finding solutions and ensuring that policy interventions were undertaken to address challenges and vulnerabilities that the country was currently facing.

Yamba said the government would use the outcome of the just ended IMF staff visit to build a firm basis for a defined sustainable macroeconomic path, which was critical for restoration of macroeconomic stability and forms a basis for future engagement with the Fund.

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