The Zambian government and the International Monetary Fund (IMF) have agreed that urgent implementation of policy adjustments will be essential in restoring the country's fiscal and debt sustainability, a senior government official confirmed on Wednesday, Trend reports citing Xinhua.
Fredson Yamba, Secretary to the Treasury said following an IMF staff team's conclusion of its visit to Zambia, 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.
In a statement released, the Zambian government official said the two parties acknowledged the country continues to face macroeconomic vulnerabilities due to the impact of climate change on electricity generation and food production.
The vulnerabilities, he said, have pass-through effects 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.
He 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.
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, he added.
"The government 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," he said.