DISCLOSE IMF TERMS, HABAAZOKA CHALLENGES GOVERNMENT

By ADRIAN MWANZA
GOVERNMENT should disclose IMF terms and conditions so that citizens can have a say through their MPs in parliament over certain conditions if need be, former Economic Association of Zambia, President Lubinda Haabazoka has advised.
Dr Haabazoka said there is need to do a cost benefit analysis to establish the right course of action that Zambia needs to take in terms of economic development in the near future.
He said for example, if Indeni was part of the deal, there was need for serious discourse.
He also said there was also need to quantify the negative effects of fuel pump price increases and electricity tariff adjustments and whether this will be more than US$1.4 billion.
“IMF money is naturally for balance of payment support. Do we need this forex over three years when copper prices are above $10, 000 per tonne? Shouldn’t we have concentrated on home grown solutions? These are some of the questions that we need to answer,” Dr Haabazoka said.
Dr Haabazoka said he was aware that the PF government then had agreed with the IMF on a package as early as April 2021.
He said only two issues had remained unsolved among which was the issue of subsidies, advice rendered then was that amid the Covid-19 pandemic when other governments like the USA were printing money and giving it to their citizens, it was not wise to increase energy costs by adjusting fuel and electricity tariffs.
Dr Haabazoka also said matters of principle had to do with mining industry incentives and of course parastatals such as indeni.
“Today as a country we have just agreed on a $1.4bn three-year programme. For us to access this money, we shall have to meet certain conditions,” he said.
Dr Haabazoka wondered how the country would create wealth when there was less disposable income as a result of increase in energy costs.
“How shall will convert savings into investments if we shall have it difficult to save because naturally fuel and electricity tariffs have an immediate effect on prices of goods and services since energy is a major cost component for businesses and households,” Dr Haabazoka said.