The IMF concluded its IV consultation with Lesotho, citing that the country continues to face challenges due to climate shocks, infrastructure delays, high food, and fuel prices, declining diamond prices, and weak regional and external demand. Despite prioritizing fiscal consolidation, Lesotho’s fiscal deficit has risen to 7.7% due to lower revenue and rigid expenditure, with public debt increasing to almost 60% of GDP. As of the end of March, Lesotho’s FX reserves cover 3.8 months of imports.