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

  1. Chester and dandy crazy have done a song that bafuma kumanda ukushika me(dundumwezi), literally translated in English that they are coming from burying me at the graveyard, really? I got a back up plan, i feel sorry for those in the northeast of zed. Kikiki muzayamba kunya manzi. When you thought you was f ucking me yall just f u cked yourselves.

    Dundumwezi
    October 7, 2016 at 10:03 pm
    Reply

  2. Whether PF or not you will feel the pinch. Mutati and crew have good intentions but it cannot work when you have very and I very corrupt government officials that need to explain where all those billions of dollars went with a lot of road projects still remaining. The first person to explain is Lungu. You cannot get of debt without getting to the root cause first then look for a recovery.

    A true Zambian
    October 8, 2016 at 12:20 am
    Reply

  3. TUKALALYE FISHIMU KABILI FYENA FISANGWA FYE KUFIMUTI ELO TAKWABA UKUBYALA IYOO, KUKOLA FYE EPELA. IFWE TWALIBELELA NA EDGAR LUNGU KAPONYA MUNANDI KUTOLA FYE. TAMULEMONA MUMA ELECTIONS AYA AYAPILEKO, TWATOLELE FYE MUBUKAKA PANUMA YAKUBADUNUNA BA UPND ALA TWABASOMPWELE FYE NANGU TWALILUSHILE. NOMBA TULEFWAYA UKUMUDUNUNA MWE BENA ZAMBIA, LELO IFWE KUMWESU IFISHIMU NIMBWEE NA LUNGU TAKALAMUTWALILAKO FIMO KU STATE HOUSE FYA FREE KABILI ING”OMBE FWEBO TATWAKWATA NAKALYA.

    Kapolyo Wa Mupamba
    October 8, 2016 at 4:04 am
    Reply

  4. PF government brought all this on us….we shall see….

    kay1
    October 8, 2016 at 5:28 am
    Reply

  5. Bane

    If remember Sata ,s PF regime removed the subsidies in order to borrow to the tune of over $9.2billion. There was heated debate and UPND protested but hey PF won the day and went on a borrowing spree and then stole 70% of the money in just 5 years. KK borrowed just $6billion in 27 years. Calculate , how much in debt Zambia will be if PF is allowed to rule another 10 years?

    To me there are no more subsidies lefts to remove apart from hard austerity. What this means is that no government salary increment, higher hospital fees, higher educational fees, no bursaries for non stauch PF supporters’s children. No agrig input support schemes in area where people support UPND.

    This means Zambians should brace them selves for higher mealimeal prices and higher fuel prices.

    Whats worse about this IMF deal is that no lender trusts PF and as a result Zambia will borrow at extremely higher fees owing to fact that it has failed or struggled to service the loans has already. PF blew its chances to borrow from the markets. So harsh conditions of the IMF suit the PF regime.

    If it was HH in power Zambia would have been allowed to borrow cheap on the markets again and reschedule the loans it has on friendly reduced terms or even cancelled. The credit rating for Zambia would have improved a lot and direct foreign investment would have started flowing to the tune of over $9.2 billions. HH ‘s actions would have meant stable prices and annual salary increment for government workers and stronger Kwacha. This is just but a snipped of what HH would have done if he was president.

    Iyo dununa reverse yaisa bane eyo mwalefwaya. Muzanya manzi.

    Wanzelu
    October 8, 2016 at 5:57 am
    Reply

  6. Back to KK era .Dununa reverse .

    kafwimbi
    October 8, 2016 at 6:30 am
    Reply

  7. Am sad ? coz Lungu wasn’t there to start dancing ? in de Mid of an important meeting –

    Robert Sulamoyo jr
    October 8, 2016 at 6:43 am
    Reply

  8. Dununa reverse has meaning – going backwards. people thought that they were dununaring UPND, instead of the enconomy the opposition preached about. UPND warned the electorates that the economy is bad. PF said the economy was ok. why is the PF now telling the truth? PF stole UPND vote because they didnt want to be arrested by the incoming government for mismanaging the economy. Whether you supported PF or not you will not be spared by the truth the minister told the whole world that the economy is bad. The Bible says that people perish because of ignorance.President Lungu claims to be a christian, why was he telling lies? Compare Isaiah 28 vs 15; Romans 1 vs 24 – 25 and Revelation 21 vs 27. Let us suffer for believing in lies told by a purpoted christian president.

    Solwezi - Chingola Road
    October 8, 2016 at 2:04 pm
    Reply

  9. Lungu is a dictator and a very shameless plunderer. PF members and caders open your eyes and be able to see that things are not ok the economy is biting. It is sad even learned people cant understand that the zambian economy is at its worst. One very senior government officer showed alot of ignorance and said the economy is just ok. I asked him how much the dollar is, he said about K10, and I asked him what must be the normal rate of the dollar, he said about K5. And I said are things ok according to your responses? he said no. That is a simple way you can see that the Zambian economy is at its worst. PF blind supporters open your eyes and brains. Dont always cheat yourselves and follow blindly. The time you will realise you are following blindly you will be in a ditch and you will rgret.

    Zambia
    October 9, 2016 at 7:28 am
    Reply

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