Prepare Zambians for IMF economic hardships

By BUUMBA CHIMBULU
ZAMBIANS should be prepared about the challenges that lie ahead with the coming of the International Monetary Fund (IMF) before the economy begins to take shape.
The truth is that Zambians should brace for hard times now and a better future ahead, according to the Centre for Trade Policy and Development (CTPD) Head of Research, Boyd Muleya.
Mr Muleya said the implication of the IMF programme entailed that there would be realignments of various fiscal measures.
He said these included subsidies on fuel and electricity, as well as the Farmer Input Support Programme (FISP).
Government’s monthly spending on subsidies are K1.2 billion on fuel and K700 million on electricity.
CTPD, Mr Muleya said, therefore expected Government to come up with a very comprehensive communication strategy that would prepare the Zambians about the challenges that lie ahead before the economy begins to take shape.
“It may interest you to note that the incidence of subsidies largely benefit the foreign corporations.
“For instance, mines are being subsidized by over K13.65 billion or 60 percent of total subsidies every year in both fuel and electricity, while Zambians are only getting K455 million or two percent per year,” he said in a statement.
Mr Muleya also challenged Government to reveal the economic recovery plan that is being used to interface with the IMF.
He observed that Government had remained mute over the Economic Recovery Plan (ERP) document that was formulated by the immediate past regime.
“In addition, the pillars cited by the Government as drivers of their unpublished economic recovery plan are in the Draft 8th National Development Plan which is not yet been availed to the Public.
“As CTPD, we urge Government to expedite the process to finalise the document,” Mr Muleya said.
Meanwhile, Mr Muleya said there was need to appreciate alternative options that well-meaning Zambians had been proposing to avert the IMF programme.
However, he said, these options made assumptions that Zambia was not indebted to over 44 external creditors that had direct interest in the scanty resource base.
Mr Muleya said Zambia needed an IMF programme for many benefits including external creditors whose money the country had already been committed towards expenditure including subsidies.
“Therefore, a conversation of ‘No IMF programme’ is only possible when one assumes there are no external creditors calling shots to have the IMF guarantee for their interests.
“So, if one is asking why Government is contracting additional debt from the IMF, there in lies your answer,” Mr Muleya said.