Policy Monitoring and Research Center (PMRC) has recommended that the International Monetary Fund (IMF) bailout policy focuses on measures such as economic adjustments, austerities and consolidation of the fiscal position.
The center also says the importance of IMF package to Zambia cannot be overemphasized and as is the requirement of a homegrown economic recovery plan, Zambia scored a first by developing the Economic Stabilization and Growth Programme.
PMRC Executive Director Bernadette Deka says she is aware that Government is currently undertaking measures to rein in on fiscal slippages and risks related to debt.
She says the Government is further working on the Economic Stabilization and Growth Plan, which is a springboard in the continued discussions with the IMF and this should also be premised in the upcoming discussions with the IMF next month.
“PMRC submits that Zambia needs an IMF package. We have been submitting to Government to pursue the IMF bailout programme for balance of payment support for as long as the bailout terms and conditions are favourable to all Zambians by consolidating growth,” she submitted.
She maintains that as a matter of fact, the IMF presents affordable finance and is significantly more affordable than commercial borrowing from domestic and international markets.
Ms Deka has thus encouraged the Government to continue perusing an IMF package that compliments Zambia’s home grown Economic Stabilization and Growth Programme [ESGP].
“The IMF package would further compliment the Government through technical assistance on fiscal management as well as offer external accountability of fiscal and growth policies for the country. In view of the foregoing we also commend the Ministry of Finance for instructing all ministries to concentrate arrears dismantling to areas that will significantly reduce nonperforming loans and release liquidity to the private sector,” said Ms Deka.