The Zambian government on Thursday said it will undertake measures aimed at curbing contracting more non-concession debts following concerns raised by the International Monetary Fund (IMF).
On Wednesday, the IMF urged the Zambian government to avoid contracting new non-concessional debt in order to tackle the problem of rising fiscal deficit.
In a statement after the conclusion of its 2019 Article IV consultation with the government, the IMF recommended that the government needed to ensure a large upfront and sustained fiscal effort which should include avoiding contracting any new non-concessional debt, steps to raise revenues and halt the build-up of new areas.
Minister of Finance Margaret Mwanakatwe said the government will undertake measures to keep the deficit within the 2019 budget target as part of the adjustment measures agreed with the IMF.
“In this regard, control measures around debt accumulation and halting arrears build-up will be implemented expeditiously,” she said in a release.
The measures, she said, will ensure a quick return to a path of sustainable growth, fiscal consolidation, debt sustainability and build-up of external reserves.
The Zambian minister said she will be taking the measures to cabinet for consideration and endorsement to ensure that the top leadership was on board with the measures.
“In conclusion, I wish to indicate that the government is aware of the challenges facing the Zambian economy. This is a key first step towards undertaking corrective measures,” she said.
According to her, accelerating reforms was the surest way to re-energize efforts aimed at improving the livelihoods of the Zambian people. Enditem