By KETRA KALUNGA
BE ready to bite the bullet. 2022 will be a difficult year because the country is bankrupt and the government can’t give Zambians what it doesn’t have, Minister of Science and technology, Felix Mutati has warned.
And Mr. Mutati, who is former Finance minister in the Lungu administration has justified the looming increase in electricity tariffs which he said was the only way Zesco Limited would settle its $3.5 billion debt.
Mr. Mutati said Zambians should be ready for 2022 as it would be a little harder because the government has made tough decisions aimed at restructuring the country’s debt.
Speaking when he featured on ZNBC Sunday Interview, Mr. Mutati said it’s unrealistic for the government to maintain the fuel price for two years when the exchange rate which affects pricing has increased from single to double-digit.
“This time we need to bite the bullet. No matter how kind you are, you cannot give what we don’t have, two years ago the exchange rate was single, fuel was costing about 60 dollars per barrel and now it’s about 80 dollars and the exchange rate was single-digit but now it’s doubled,” he said.
Mr. Mutati explained that maintaining the pump price for two years is not realistic and it also means that the government is providing a service through borrowing and the consequence has been that the country owes over $500 million in unpaid products without products.
He added that to maintain the pump price, the country would need to borrow about $68 million on a monthly basis and Zambia can’t afford that because it’s in debt distress.
And Mr. Mutati has justified the looming increase in electricity tariffs saying it’s the only way Zesco Limited would be able to pay off its $3.5 billion debt.
“There is no money that we shall find to be able to cure the $3.5 billion that Zesco owes, the answer lies in dealing with the tariff structure, the cost structure at Zesco. That is survival and that is a bold decision,” he said.
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