The International Monetary Fund ( IMF)has advised the Zambian government to cut its huge wage bill for public workers in order to channel some money for social sector spending as a measure to enhance economic development and poverty reduction, local
newspaper the Times of Zambia reported on Thursday.
Zambia's wage constitutes about 50 percent of total government expenditure.
IMF Chief for Africa George Tsibouris said after the international financial institution's conclusion of a two-mission in Zambia on Wednesday
that the huge public sector wage bill was one of the challenges the southern African country needed to urgently address.
He said in a statement that there was need for Zambia to increase funding to its social sector to support the economic diversification and measures aimed at poverty reduction.
The IMF mission was in Zambia on Oct. 15-28 to conduct discussion in the article of agreement and for the third review of the Poverty Reduction
and Growth Facility (PRGF), according to Times.
Tsibouris said following meetings with government officials and other stakeholders that an understanding on the macroeconomic and structural
policies for 2010 had been reached.