The International Monetary Fund (IMF) has asked government to include the manufacturing sector in the countryâ€™s Economic Recovery Plan (ERP).
IMF has also urged government to ensure that ERP is result-oriented by, among other things, including quantified output targets and time frame for all priority areas.
Market analyst Henry Kachaje also made a similar observation that ERP lacks clarity, focus and that it has no quantifiable targets.
Currently, ERP focuses on energy, tourism, mining, agriculture, transport and information and communication technology as anchoring sectors.
The plan also embraced a set of immediate, short and medium term policy reforms which aim to restore the external and internal economic stability.
Â â€œThe priority sectors should be expanded to include the manufacturing sector which is important for both growth and employment creation,â€ says IMF in a statement released at the end of a joint meeting it had with government in Lilongwe.
The conference, themed â€˜Towards More Inclusive Growth,â€™ was aimed at discussing strategies for enhancing the implementation of the recovery plan.
According to IMF, macroeconomic stability is critical to recovering the economy, â€œbut it is not sufficientâ€ for a sustained recovery and promoting broad-based and inclusive growth.
The Bretton-Woods institution has also expressed the need for an effective dialogue on a regular basis between government and key stakeholders which IMF says are critical for fostering ownership and sustaining its reform efforts.
IMF has also observed that high levels of growth rates since the mid-2000s have had little impact on the overall poverty rate in the country.
The institution says although poverty has fallen significantly in urban areas, it has risen in the rural areas where the majority of Malawians live.
IMF has also noted that to improve the countryâ€™s international competitiveness and achieve sustained growth, hurdles to opening or expanding businesses should be removed.
â€œGovernment expenditures should be prioritised to provide adequate social protection and investment in human capital and physical infrastructure. Expanding access to financial services is critical for achieving inclusive growth,â€ says IMF.
IMF deputy director of African Department David Owen said the conference provided a valuable opportunity for the fund to listen to views from key stakeholders in the country.
He said during the meeting, it was clear that there was candid dialogue on policies and measures needed to respond to immediate challenges to meet the countryâ€™s medium and long term goals.
Finance Minister Dr Ken Lipenga said Malawi is committed to reforms that will put it on the path to sustainable and inclusive growth.
He agreed with IMF recommendation that strong and inclusive growth is critical for economic development and social cohesion.
In her address on Friday, President Joyce Banda asked participants to critically review the ERP implementation strategy and come up with concrete recommendations for strengthen Malawiâ€™s international competitiveness and attracting investments that would promote broad based growth that can reduce poverty in the country.Â