By Staff Reporter
The UPND government has placed Zambia at the altar of the IMF, former commerce minister Bob Sichinga has charged.
Reacting to Finance minister Dr Situmbeko Musokotwane’s statement today that in the IMF deal, fuel and electricity will reflect the cost reflective tariffs as the subsidies will be removed so that money could be channeled towards other needy areas, Sichinga said this is not what President Hichilema and the UPND promised when they were campaigning, as they claimed that they had done their calculations on how they would reduce the cost of fuel and electricity.
“They are placing us at the altar of IMF and this they will regret taking this action,” Sichinga said, adding that the cost of production will increase resulting in more companies going downhill while making life more expensive and unbearable for the consumers. “Completely ill advised. Don’t follow the IMF approach.”
Sichinga said for electricity, the best would have been to address the inadequacies in Zesco, while rooting out corruption in the fuel supply to reduce its cost.
“I can’t see how UPND can expect that they will revive the economy like this,” Sichinga said, adding that this has come on top of the repo rate by the Bank of Zambia which has squeezed the flow of cash in the local economy, while banks were making super profits from higher interest rates, with government being a super borrower through the treasury bills.
“They are exercerbating the problem. Keep this record of the conversation and in two years you will prove this…And they are reneging on the promises they made and they are simply following the IMF. And this is what has led to rebellions around the world when costs become too high,” said Sichinga.
Dr Musokotwane said the government is waiting on the advise from the Energy Regulation Board (ERB) and Zesco on the cost reflective tariffs. Those in the oil market are projecting increments of between K20 – K23 per liter in terms of the fuel.
2 Comments