On fiscal policy, the IMF urged the authorities to undertake ambitious tax reforms, simplify the tax system, and strengthen tax administration and compliance.
The Directors also underscored the importance of rationalising subsidies, prioritising growth-enhancing investments, improving public financial and investment management, and strengthening social safety nets to promote inclusive growth. Improving the financial viability of energy state-owned enterprises was also flagged as a priority.
The IMF further stressed the urgent need for a credible banking sector reform strategy aligned with international standards.
This should include comprehensive asset quality reviews of systemic and state-owned banks, estimates of undercapitalisation, clearly defined fiscal support, and legally robust restructuring and resolution plans.
Strengthening risk-based supervision, governance, and balance sheet transparency was also emphasised.
On monetary policy, the Directors agreed that maintaining a tight policy stance is necessary to rebuild foreign exchange reserves and reduce inflation.