Dar es Salaam. The government has been urged to heed International Monetary Fund (IMF) warnings on economic blues.
“The government is facing challenges to implement IMF policies on loosening microeconomic policies. The IMF proposal to the government to borrow from foreign sources has sent a signal that borrowing from within is not practical in the country whose financial sector is suffering from illiquidity,” Kigoma South former MP Kafulila told The Citizen.
According to Mr Kafulila, the government decision to borrow Sh1.2 trillion from local banks for financing development projects is irrational because it will further hurt the private sector, which is already weak.
Economic and Social Research Foundation executive director Tausi Kida said heeding the IMF recommendations would enable Tanzania to meet its objectives of attaining a middle income status by 2025.
“We, researchers, agree with the IMF proposals.”
She is unhappy that most research findings have not been taken by the government during the implementation of development policies.
Moreover, under the 2016/17 financial Tanzania set a five-year development plan on industrialisation in 2021.
Sh107 trillion is needed from domestic and foreign sources to implement the plan.
Tuesday’s IMF report identified four problems which should be dealt with. They include tight microeconomic policies, slow pace of credit growth, slow implementation of public investment and private sector uncertainty about government’s new policies.