UA-55300619-1

Brace for hard times, PF govt announces removal of subsidies at IMF meeting

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Mutati

Mutati

Zambians should brace for hard times ahead as the Patriotic Front government has now officially announced it will remove subsidies over time. This simply means the cost of living will go up as prices for commodities will increase.

zambia-delegationThe Zambian delegation led by Finance Minister Felix Mutati are attending the International Monitory Fund ( IMF ) and World Bank meetings in the United States of America.

Below is a statement issued by the Zambian embassy in US:

Government says it will remove subsidies over period of time as part of the country’s economic recovery program.

Finance Minister Hon. Felix Mutati says the government will over the next five years work on an intensive economic recovery programme that will among other things implement the removal of subsides.

Mr Mutati was quick to point out that the process would be done gradually adding that government would put a social safety impact programme in place to cushion the impact on the poor.

The minister was speaking at the Zambian Embassy in Washington DC, where he briefed the diplomatic staff on the governments economic plans over the next five years.

Earlier in the day, Mr. Mutati and Minister of National Planning and Development Hon. Lucky Mulusa held high level closed door consultations with the Bretton Wood institutions on issues of development for the country.

The two minsters are in the USA capital Washington DC to attend the annual meetings of the IMF and World Bank.

The Zambian Delegation delegation met with ‎Executive Director at IMF Ms. Chileshe Kapwepwe and World Bank’s Vice President for Africa Makhtar Diop in separate closed door meetings.

Mr Mutati said the purpose of the meetings was to discuss how Zambia would partner with the institutions to help on its recovery programme.

He observed the ministers had candid discussions with the institutions at which the government was clear on the road map to the recovery.

The minister added that government was undertaking measures that will bring equity and sustainable growth for the country.

Mr Mutati noted that the country had a huge financing gap that was negatively impacting the countrys inflation rate worsened by low copper prices adding that the banking sector was currently holding up to 10 percent of bad debt.

The Minister said the government would announce the economic recovery program in the coming budget.
The ministers were welcomed by chargé d’affaires at the Zambian Embassy Joseph Chilaizya.
The Zambian delegation includes Ministry of Finance Permanent Secretary Dr Ronald Simwinga, Ministry of National Planning Permanent Secretary Dr Sr Auxilia Ponga, and Bank of Zambia Governor Dr Denny Kalyalya.

Issued by
Patricia Littiya
First Secretary (Press and Public Relations)
Embassy of the Republic of Zambia

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Start: 2019-07-01 End: 2019-07-31