ZAMBIA recorded reduced poverty levels from 80 to 64 percent midway through the Fifth National Development Plan (FNDP) but the country failed to achieve the target average economic growth rate Finance Minister Situmbeko Musokotwane has said.

That means that out of Zambia's estimated total population of 12 million people more than 7.6 million people are still wallowing in poverty.

Dr Musokotwane said in Lusaka yesterday that at the start of the five-year FNDP in 2006, poverty levels were as high as 80 per cent but two-and-half years down the line that had been reduced to 64 per cent.

The minister said this during the official dissemination of the FNDP mid-term review report.

He said that the reduction of the poverty levels was no mean achievement and attributed it to the increased investments following the privatisations and other sound economic policies the Government had embarked on.

Dr Musokotwane said what was even more encouraging was that the various economic indicators like poverty levels were being translated into tangible progress for the social sectors and not just figures.

"The education sector recorded an increase in grade one to seven enrolment by 67 per cent, completion rate at grade seven is now at 91 per cent whilst pupil teacher ratio reached an average of 80 per cent," he said.

In the health sector, remarkable progress was recorded in the reduction of the maternal and infant mortality rate in the country. The maternal mortality rate dropped from 729 deaths per 1,000 live births in 2002 to 499 in 2007.

That makes it likely for the country to achieve the Millennium Development Goal of reducing the maternal mortality rate to 162 per 100,000 live births by 2015.

Further the under-five mortality rate has reduced from 168 per 1,000 live births in 2002 to 119 in 2007 exceeding the 2010 target of 134 deaths per 1,000 live births.

He said during the period under review, however, the country registered an average economic growth rate of 6.1 per cent against the target of seven per cent due to various challenges.

Dr Musokotwane said the seven per cent economic growth target, if consistently achieved for the next 20 years, Zambia would attain the desired middle-income status by 2030 in accordance with the National Vision.

He said although the country did not achieve the targeted seven per cent economic growth rate, the 6.1 per cent scored was one of the highest figure recorded in the history of Zambia.

Dr Musokotwane said that the FNDP review report was significant in the ongoing preparation for the Six National Development Plan (SNDP), which would cater for 2011 to 2015.

And Dr Musokotwane has said the Government would soon decide on the future of Indeni Oil Refinery.

He said the Government was now free to decide on the oil firm's future as it embarked on a review of the oil procurement system in the country.

Dr Musokotwane said currentlyIndeni could only refine special crude oil which was mixed with some refined fuel and the Government would ascertain if this was the most cost-effective way or not.

He said the Government had two other options to either close the refinery all together and start importing finished products or upgrade it into a facility, which would be able to refine any type of crude oil.