Zambia and the International Monetary Fund (IMF) announced Thursday that they have reached a staff-level agreement on economic and financial policies to be implemented for the next 12 months under the extended credit facility program.

The agreement follows the first review of the extended credit facility program by a team from the IMF that was in Zambia between March 22 and April 5.

A statement from the Ministry of Finance and National Planning said the agreement is subject to approval by the IMF management and the executive board once the necessary financing assurances have been received.

The agreement marks an important step in Zambia's cooperation with the international lender and the country's journey toward economic recovery, read the statement.

"The Zambia today and the Zambia of two years ago are two different countries. We have taken control of our finances and implemented crucial reforms to reign in borrowing and ensure prudent use of resources and oversight in public spending," the statement quoted Minister of Finance and National Planning Situmbeko Musokotwane as saying.

According to him, the IMF has commended Zambia for implementing a number of home-grown reforms to reduce the fiscal deficit and increase social spending in 2022 alongside steps to strengthen public financial management and good governance.

The IMF approved an extended credit facility to Zambia last August and as part of the program, the international lender carries out scheduled regular reviews in assessing the performance of various areas in the country.