An International Monetary Fund (IMF) mission, led by Mr. Edward Gemayel, visited Khartoum during July 2-16, to conduct the 2013 Article IV Consultation. The mission met with Minister of Finance and National Economy Ali Mahmood Mohamed Abdelrasool, Governor of the Central Bank Mohamed Kheir Ahmed Elzubeir, and representatives of the private sector, civil society, and development partners.
At the end of the mission, Mr. Gemayel issued the following statement:
“Sudan continues to grapple with the macroeconomic impact of the July 2011 secession of South Sudan. Despite an initial package of corrective measures adopted in June 2012, economic developments remains mixed. While inflation has shown recent signs of moderation, and fiscal performance in the first half of 2013 exceeded budget projections, further action is needed to safeguard macroeconomic stability and support the needed recovery.
“In this context, the March 2013 agreement with South Sudan on oil and security matters is offering a window of opportunity for bold policy reforms to address the post-secession challenges and bring about a much-needed turnaround. The mission welcomes the authorities’ current efforts to develop economic policies to ensure macroeconomic stability, in the spirit of their Three-Year Emergency Program, adopted in 2011. The expeditious implementation of corrective macroeconomic policies to raise non-oil revenue, streamlining expenditure while protecting the most vulnerable, unifying the exchange rates and markets, and enhancing the monetary policy framework, would help create the conditions for stronger medium-term growth and poverty alleviation. It could also pave the way for a successor staff-monitored program with the IMF. Furthermore, the mission underscores the importance for the 2014 budget to continue the required fiscal consolidation path.
“The IMF’s Executive Board is expected to consider the report of the 2013 Article IV consultation with Sudan in September 2013.
“The mission thanks the authorities for their cooperation and constructive dialogue, as well as their generous hospitality.”