Lesotho: Staff Report for the 2003 Article IV Consultation, Fifth Review Under the Poverty Reduction and Growth Facility, and Requests for Waiver of Performance Criteria and Extension of Arrangement

IMF Staff Country Reports, February 5, 2004

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Lesotho's economy has continued to perform well under the Poverty Reduction and Growth Facility (PRGF) arrangement despite adverse weather conditions and the regional food shortage.
Executive Directors welcomed the strategy to achieve higher and sustainable economic growth, reduce poverty, and improve social conditions by creating private sector developments and labor-intensive industries.
Directors appreciated:
- the monetary and fiscal policies;
- the integration of PRGF objectives with the budget;
- the improvement in the tax system.
Directors emphasized the need to accelerate structural reforms and supported the Anti-Corruption Unit.

Maintain monetary and fiscal policies aligned with PRGF objectives and budget integration.
Accelerate structural reforms to support sustainable growth and poverty reduction.
Strengthen anti-corruption efforts through continued support for the Anti-Corruption Unit.
Continue improvements in tax administration and the tax system to bolster revenues and public financial management.