By BUUMBA CHIMBULU
MAJOR reforms are coming in sectors with huge subsidies such as the energy and agriculture as part of fiscal consolidation meant to save funds to be reinvested in other areas and for government to get on the IMF programme.
This is according to the Finance and Planning Minister, Dr Situmbeko Musokotwane, who acknowledged to the creditors yesterday during a virtual meeting that major subsidies were in the energy sector. “The major subsidy here are in the energy sector, including petroleum as well as Farmers Input Support Programme (FISP).
Government will redesign the FISP. “Changes in reforms are required so that the money that is saved assists us to invest in the social sector and also perhaps to put up infrastructure that is going to assist new investments,” Dr Musokotwane said.
When asked about the expected conditions from the International Monetary Fund (IMF), Dr Musokotwane explained that various subsidies were likely to be among the main topics. “Various subsidiaries are likely to be issues that the IMF is likely to want us to deal with. The IMF will lend us money sometime next year but will not do it unless there is an assurance that there are financing arrangements,” he said.
On the IMF programme, Dr Musokotwane indicated that a deal was expected to be completely sealed up in the second or third quarter of 2022. He explained that full stage negotiations were expected to be entered into in the next few weeks.
