This paper reviews the Annual Progress Report on Malawi’s Poverty Reduction Strategy (MPRS). The poverty situation remained high over the implementation period of the MPRS. The government continued funding activities that have been perceived to have an impact on poverty reduction. The MPRS outlined a number of macroeconomic policies that have been adhered to achieve the macroeconomic targets. These policies have been mainly in the form of monetary, fiscal, and structural policies.

The government of Malawi has finalized its third annual progress report (APR) of Malawi's Poverty Reduction Strategy (MPRS) for the period July 2004 to December 2005. The government's strategy as described in the MPRS focuses on reducing poverty through creating a stable macroeconomic environment and undertaking activities in four interrelated pillars. IMF staff recommends that in future processes, extra effort is made to ensure greater participation by the private sector and key members of parliament. The food security crisis was deeper than anticipated, leading to higher expenditures.