HARARE, Feb. 26 (Xinhua) -- The World Bank on Wednesday urged the Zimbabwean government to continue implementing fiscal reforms to anchor macroeconomic stability.

According to the World Bank's performance report on Zimbabwe's public finances between 2019 and 2023, strengthening fiscal policy is a critical anchor for macroeconomic stability in the southern African country.

"The government of Zimbabwe is at a crucial juncture. By adopting a bold set of fiscal reforms, it can turn the page on a prolonged history of macroeconomic instability, and set the foundations for a credible national budget that is efficient, able to manage unforeseen fiscal risks, and can ensure a stable and competitive currency," said the report.

To secure the reforms, it is key for the Zimbabwean authorities to identify ways to strengthen its fiscal policy to help move the country toward a sustainable medium-term fiscal pathway, the report added. Robust fiscal reforms will help the country clear arrears and resolve its 21-billion-U.S.-dollar external debt.

The report recommended several measures to create fiscal space and return Zimbabwe's fiscal accounts to a prudent trajectory and highlighted the importance of stabilizing prices and eliminating exchange rate distortions to boost government revenue.

Noting that monetary and exchange rate policy distortions significantly undermine Zimbabwe's revenue collection, the World Bank called for enhanced price and exchange rate stability to help recover inflation-related tax losses.

It also urged the Zimbabwean government to improve allocative efficiency to improve value for money in areas such as health care and capital investment. Enditem

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