LUSAKA, Aug. 31 (Xinhua) -- The Zambian government said on Thursday that it has made substantial progress towards reaching an agreement with the International Monetary Fund (IMF) on an economic program.
Minister of Finance Felix Mutati said the government was confident that the IMF will in the coming weeks finalize a report on consultations done for presentation to the board.
He said the program discussions have so far taken into account the progress which has been made under the Zambian government's approved economic stabilization and growth program for the period 2017-2019.
The progress involves attainment of a single digit inflation, stability of the exchange rate, rebound of economic growth, reforming and removal of subsidies in the energy sector and developing of a strategy to dismantle arrears and halting accumulation of new ones, according to a statement released by the finance ministry.
The government and the IMF have since agreed to progress discussions in the area of public sector spending and borrowing plans, he added.
The Zambian minister said the two parties have so far concluded talks on protection of social spending over the program period, reforms of laws and regulations and definitions and measurement of program targets.
The two parties have also agreed to continue discussions at the IMF/World Bank Annual Spring Meetings scheduled for October this year.
In June, an IMF Mission was in Zambia to continue discussions for a possible bailout package of about 1.4 billion United States dollars after the cabinet approved for the country to engage the international financial institutions for an economic program at the end of the first quarter of 2017.
The government had hoped the deal could be concluded by August this year.
