Zambia has decided not to pursue an extension of its International Monetary Fund Extended Credit Facility (ECF), the fund said on Wednesday, allowing the programme to lapse at the end of this month.

No explanation was provided for the decision, which comes as President Hakainde Hichilema’s government prepares for elections in August, while facing double-digit inflation and the lingering effects of a severe drought.

Reuters reported that authorities had initially requested a one-year extension but later informed the IMF team they would not move forward with the option.

The IMF’s executive board is expected to conduct the sixth and final review of the arrangement at the end of January. Lusaka had hoped the extension would release roughly 145 million US dollars in additional funding, a potential boost amid ongoing economic pressures.

The original programme, agreed in 2022, aimed to help Zambia restore debt sustainability following its 2020 default. Government forecasts for 2026 suggest a sharper fiscal outlook, with the budget deficit expected to shrink by more than half and economic growth projected to exceed 6 percent, reflecting progress after years of debt restructuring negotiations.