IMF underscores Myanmar's economic reform efforts

The International Monetary Fund (IMF) has underscored Myanmar's economic reform efforts, forecasting an economic growth to 7.5 percent in the fiscal year 2013-14 and near 7.8 percent in 2014-15, state media reported Thursday, quoting a statement of the IMF Review Team.

Myanmar has been undergoing sweeping reform which included removing exchange restrictions and adopting a floating rate for the Kyat in the past year, the establishment of an autonomous central bank and large increase in government and spending on health and education, the statement said.

Noting that Myanmar's current target of keeping the deficit below 5 percent of gross domestic product (GDP) was appropriate, the statement, however, pointed out that tax revenue remains too low and tax base too narrow and Myanmar still needs several years of sustained reform to modernize the country's financial sector.

The statement stressed oversight of new policy banks set up by the government" to ensure they are managed soundly and to minimize fiscal risks".

The IMF vowed in its statement readiness to continue to help the Myanmar government with reform through policy advice, progress monitoring and tailored technical assistance to help build capacity for economy management.

The IMF has assisted Myanmar in implementing its policies in coordination with other development partners to ensure macroeconomic stability and strengthen reform under the Staff Monitored Program (SMP).

The IMF has also helped Myanmar in coordination with international creditor countries in reducing Myanmar international debt.