The International Monetary Fund (IMF) has urged Malawi’s new administration to maintain strict fiscal and monetary policies and uphold automatic fuel pricing mechanisms as Finance Minister Joseph Mwanamvekha prepares to present the midyear budget on 28 November, 2025.

IMF Resident Representative Justin Tyson, speaking at the end of a four-day visit to Lilongwe on Friday, said Malawi is projected to record modest growth in 2025 but warned that public debt remains unsustainable.

The mission assessed Malawi’s economic outlook and explored the potential resumption of the IMF’s Extended Credit Facility (ECF), which could provide financial support to strengthen the country’s recovery.

“High public debt continues to pose risks. Maintaining fiscal discipline, tight monetary policies, and adherence to automatic fuel pricing will be critical as the government adjusts its budget priorities,” Tyson said.

He stressed that careful budget management, prioritizing productive spending, and implementing policy reforms are key to ensuring both economic stability and social development.

“Discussions have not yet reached the stage of a Rapid Credit Facility or Staff-Monitored Program,” Tyson added.

Finance Minister Mwanamvekha described the visit as a fact-finding mission to help the administration plan sustainable economic policies. “The IMF team’s guidance will inform the midyear budget to ensure growth while managing debt responsibly,” he said.

Malawi has faced rising public debt in recent years, driven by borrowing and fiscal deficits.