MINISTER of Finance and National Planning Dr. Situmbeko Musokotwane has said Government will remove the $67 million- a-month spent on fuel subsidy. He says this will result in savings of $809 million in 2022.
Similarly, Secretary to Treasury, Felix Nkulukusa disclosed that Government has been spending $1.3 billion on both fuel and electricity subsidies.
Government and the IMF have reached a staff-level agreement on a new arrangement under the Extended Credit Facility ECF) for 2022-2025.
Further, the staff-level agreement is subject to IMF and Executive Board approval and receipt of necessary financing assurances.
Government has also committed to make bold and ambitious economic reforms.
This will enable Government access $1.4 billion in three years from the Fund. This translates to $460 million a year.
So the questions to ask;
- Do we need the IMF if we can make savings of $1.3 billion from our own decision of fuel and electricity subsidies?
- Do we need the IMF if we can earn this money from the copper mines instead of giving away earnings as we have done in the 2022 Budget?
- What are the bold and ambitious economic reforms Government has committed to the IMF to implement? None was disclosed at the briefing to citizens.
- What will be the impact of these fuel and electricity subsidy removals on our people and our economy?
What is your view?
EMMANUEL MWAMBA.
