The Zambian government needs further reforms to support macroeconomic stability and growth, a visiting International Monetary Fund (IMF) official said Friday in Lusaka.

"We agreed that further reforms are critical to support macroeconomic stability and growth," said Takatoshi Kato, IMF deputy managing director, while attending a press briefing jointly held with Finance Minister Ng'andu Magande.

Kato said priority should be given to strengthening public expenditure management and financial accountability, financial sector reform and governance.

"Creating an environment conducive to private sector development is another priority area for Zambia," Kato said.

He said the IMF would support the Zambian government in its efforts to carry out reform so as to achieve further economic growth.

During his three-day visit, Kato has met with Zambian President Levy Mwanawasa and other senior government officials, and held talks with members of the donor and business communities as well as representatives from civil societies.

"I am encouraged by the determination and commitment by the president and his colleagues to build on their commendable track record and to move ahead with their reform agenda," said Kato. " Such persistence with policy reforms will bring increased rewards and the IMF is committed to supporting the government of Zambia in its endeavors."

He however pointed out that Zambia was facing great challenges ahead if it was to achieve faster growth, strengthen resilience to economic and other shock, significantly reduce poverty and take further strides toward meeting the Millennium Development Goals.

He said emphasis should be attached to the government's policies in regarding to addressing social needs and improving the conditions for investment while maintaining fiscal discipline and a debt position.

Source: Xinhua