Africa-Press – Zambia. Minister of Finance and National Planning Situmbeko Musokotwane has told Parliament that the recent agreement the Zambian Government has reached with the International Monetary Fund when implemented will help to improve the local economy.
In a Ministerial Statement in Parliament on the IMF agreement with the Zambian government reached this week, Dr. Msokotwane said the planned reforms are aimed at restoring price stability, bringing the debt situation under control and achieving higher inclusive growth.
He said if nothing is done regarding Zambia’s current economic status the exchange rate will get worse, prices will escalate and poverty will get out of hand.
A Staff-Level Agreement is an understanding between the IMF and the Government on the economic and financial policies and reforms which the Government will undertake over time.
Dr. Msokotwane added that the planned removal of subsidies on fuel and electricity under the new International Monetary Fund (IMF) programme will help to narrow the gap between the rich and the poor.
He said money to be saved from the removal of subsidies will go towards enhanced CDF, provision of free education and hiring of teachers. The Finance Minister, however, acknowledged that fuel and electricity consumers will feel the impact of subsidies removal.
Dr. Msokotwane said he is aware that Zambians have raised concerns and fears that life under an IMF program will be harsh. “Madam Speaker, as I conclude, let me address the concerns and fears expressed by some citizens that life under an IMF program will be harsh. This of course depends on who you are,” he said.
“If you are a rural dweller, life is likely to be better for you rather than being harsh because the enhanced CDF money, free education and availability of teachers will be better for you.”
“If you are a citizen who drives, of course the cost of fuel will be slightly more expensive. In any case, maintaining the status quo is not an option,” Dr. Msokotwane stated.
“I wish to assure the Zambians that our thoughts and actions are with them all the time and we intend to deliver a much better economy and better living conditions for the average citizen than what they are experiencing now. Zambia is in safe hands,” he concluded.
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