The Executive Director of the International Monetary Fund agreed to the first review of Sudan’s program that the IMF staff is monitoring, but called for reform of the customs exchange rate and for more transparency on state-owned enterprises.
According to the IMF, the Sudanese authorities have made tangible progress towards setting a strong track record for implementing policies and reforms, which is a key condition for eventual debt relief, noting the recent devaluation of the Sudanese pound and the abolition of fuel subsidies.
The Fund warned that the economic situation is still "very fragile" in light of a deep economic crisis in which inflation reaches 300 percent amid a shortage of basic commodities. It also called on the Sudanese authorities to implement the reform of the customs dollar within a reasonable time frame to increase revenues and competitiveness.
The IMF noted that enhancing transparency and managing state-owned enterprise operations is necessary to reduce risks to public finances and bring more revenues to the budget. Indicating that the adoption of the Central Bank Law in a timely manner and the establishment of an independent anti-corruption committee will help strengthening the independence of institutions and governance.
The Sudanese government has put in place a reform program aimed at stabilizing the economy, enhancing social protection and supporting the private sector.
Source (Reuters News Agency, Edited)
