IMF Team expected in Zambia next month to discuss the planned rescue package-Mutati

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A TEAM from the International Monetary Fund (IMF) is expected in the country at the end of October to discuss the planned rescue package for Zambia, Minister of Finance Felix Mutati has disclosed.

The IMF plans to provide a monetary aid package of between US$1.2 billion and US$1.5 billion to help re-energise the economy.

Mr Mutati said the revival of Zambia’s economy will require prudent fiscal management with Government placing emphasis on the removal of unnecessary subsidies.

He said Government has since started working on modalities for engagement with the institution.

Mr Mutati told journalists on the sidelines of the Zambia Institute of Banking and Financial Services second international conference yesterday that Government is also working on an economic plan that will help to rescue the economy that has been grappling with fiscal deficits on the back of fluctuating commodity prices on the global market.

“Our strategy is clear. First of all, we need to construct a home-grown recovery programme with the key elements that are troubling the economy as a platform for engaging with IMF. The strategy is that we need to secure a stable recovery platform to grow the economy,” he said.

He said as Government plans to take the economy to sustainable levels, reducing the fiscal deficit remains crucial as it will help reduce government borrowing and further bring down interest rates prevailing in the financial market.

Mr Mutati admitted that the infrastructure development programme has contributed to government borrowing, thus the need to re-sequence the programme to ensure that infrastructure needs do not out-weigh other economic needs.

Government plans to reduce subsidies, which are largely benefitting the rich at the expense of the poor.

“Subsidies are benefitting the well-to-do at the expense of the marginalised citizens, whose socio-economic programmes such as health and education have had to be stopped to facilitate subsidies.

“The other subsidies that enhance our economic activities, particularly those in agriculture, will be reformed to ensure effectiveness and efficiency,” he said.

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42 COMMENTS

  1. And when i said Zambia is in ICU back in April,cadres called me names..Welcome IMF.SAPS are the way to go for the country to recover.Zambians brace yourselves for bad times but surely we shall see good times in years to come.

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    • Mutati speaks like he is proud of the fact that the IMF are coming to Zambia. This is nothing to be proud of, in fact its a complete disgrace the way the Economy has been plundered under the PF Regime, and PF Supporters, dont give me that ‘Grobal’ excuse as it doesnt wash with me! We have a ‘President’ that was back to his Globe Trotting only two days after being sworn in, partying and spending Money like it grows on Trees, without a care in the World. TIA

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    • @Kadansa, he’d just won the election, you’d want to party and dance too! At least he did it on the job.

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    • Bane are there any subsidies benefiting the rich left in Zambia? Please educate me.

      i thought subsidies were long removed during Sata era when Sampa and all PF pundits took to the stage to defend the removal of subsidies.

      Subsidies were removed in 2012 and then PF stole all the money saved from subsidy removal and ended up bankrupting the government. PF enherited $2billion from MMD and blow all of it and borrowed $12billion more which was also stolen.

      I ask what will PF do with ka £1.2 billion which the failed to do with $14billion they had in 5 years?

      The only subsidies left are those in education and health care provision. If these are removed then what would be the benefit of paying taxes to the PF government?

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    • Mutati could be alarming all of us “rescue package!!!”. In some places like CB, if you mention the word “rescue” it would mean some bodies are under tonnes of rock

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    • Can Hh tell us how he was going to fix the economy on behalf of his sponsors?
      Meanwhile I urge the “PF GOVT TO BE CAREFUL OF IMF SPONSORED SOLUTIONS WHICH WILL ONLY HELP THE OPPOSITION WITH THEIR PROPAGANDA LIKE THE REMOVAL OF. SUBSIDIES ON FUEL AND ELECTRICITY.

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    • There’s gloss mismanagement of national resources in Zambia by some corrupt, selfish, greedy individuals (politicians). That’s what has contributed to financial woes the country is facing today. Fluctuating commodity prices on the globe market, as the reason for our financial troubles, is hogwash, and a red herring. There’s unbridled corruption, that causes chunks of money meant for development to disappear, with no motivation from the government to carry out any serious investigation. If you’re serious about fiscal responsibility, start by showing that you’ll not tolerate any form of corruption. Make these government ministers declare their assets at the beginning of their terms. And then have them declare their net worth annually, or at the end of their service. If you see a…

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    • Continued)… sudden sharp increase in assets, make them explain were they got the money from. If it’s proven that they stole public funds, give them prison time(20 years minimum). In fact start with ECL. He still hasn’t explained were he got the K13million increase in assets in 15 months. Otherwise, even this money that’s coming from IMF will accomplish nothing but will just be another cake to be shared among corrupt politicians, and then the burden of paying back the debt left to ordinary poor Zambians, and our grand children. (Please watch a video on YouTube titled: Stealing Africa–Why Poverty? It starts somewhere in Europe but it’s all about Zambia. You’ll see what’s happening to your country).

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  2. IMF again !! back to KK days. With this new loan ,how much the foreign debt be up to? Cadres ,just accept IMF is coming to rescue your sinking boat.

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  3. Given that there Is an electoral dispute and there is a Petetion at Concourt opposing the re-election of the President Elect will IMF endorse the Electoral theft and fraud? Will they ignore the rights of the Petetioners to be heard? Will IMF finance the death of Rule of Law and Constitutional Democracy? Will IMF ignore the absence of Good Governance in Zambia? How will IMF ensure the repayment of their loan in the absence of the Rule of Law in Zambia? Is IMF unconcerned with Human Rights violations in Zambia? More questions than answers.

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  4. Stupid Pangarians Family(PF) thought its HH who had lost now the IMF is coming to advise on how to inflict poverty on poor people. Its good Zambians need to learn in a hard way.

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  5. And for own information its not a rescue package its a Harsh package punishment. We are now living in DUNUNA Reverse and we have just been Dununad reverse to IMF.

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  6. Please God take Edgar Chakolwa Kaloba Wrungu, his entire cabinet,his members and bring back LEVY MWANAWASA for us. We the Zambians has rejected this hardocore swindler. We pray all this through Jesus Christ our lord AMEN.

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  7. Kikiki all the best Zambians. You thought hh will suffer when he is doing better than the entire Zambian economy. Pf cadres by next year I want to hear you and see you singing and dancing to dununa because hunger will do you bad while lungu will be eating calamari

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    • HH is suffering my brother, please do not tease him.

      Pangs of hunger can not surpass the mental and spiritual pain our dear brother is going through. Look, incredibly now he even wants to take an election petition to an international CRIMINAL court and ICJ.

      For all we know, he can not even take a morsel of food because food has become tasteless, and the gullet just won’t open up. But that is nothing compared to the kind of pain he is going through.

      HH is suffering badly my brother, please do not tease him…

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    • @NEZ
      HH SAID HE WOULD FIX THE ECONOMY BUT ON BEHALF OF HIS SPONSORS.
      A PATRIOT WOULD SPELL OUT EXACTLY WHAT PF IS DOING WRONG FOR THE MASSES LIKE I’M SAYING MUTATI SHOULD ONLY CUT SPENDING IN AREAS THAT WONT HURT THEM.

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  8. So the rescue package is far less than what PF borrowed in five years? I still cant believe that we are going to solve a 7 billion dollar problem with 1.2 billion dollars!!!! The IMF better be magicians

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  9. NEZ your f00l HH will not suffer because he stole privatization money from poor Zambians and HE will never be forgiven. By the way he will spend a lot of that money in court circus he has started with 3,000,000 already paid to lawyers over the failed unsupported petition

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    • ukose mambala kikikiki i can see the hunger has already started affecting you

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  10. After recovering the Economy then you misuse the money again, same trend people sacrifice after recovery you plunder the economy and Mwanawasa didn’t recover the economy its people that sacrificed during Hipic

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  11. 50 years after independence still proud of begging…Fossil Chikwanda leaves another mess and his great grandchildren will have to clean up his poo.

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  12. Dear Felix, cosmetic negotiations will not get you the 1.2m it will remain a pledge. First reduce GRZ its bloated 40 Minister? You have appointed 10 try not to fill the 30 positions. Second what do we need PS/DC in provinces get rid of DCs. Three we don’t need two Sec. to Cabinet get rid of one. Four introduce proper tax policies stop squeezing the poor workers broaden the tax base to capture all incomes, Five slow down on infrastructure expenditure; Audit all GRZ expenses bring the culprits to book, six stop corruption…Please pay retirees on time its our money…

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  13. What rescue is being talked about here? The moneys may come in and the “Farms Onion syndrom” shall also come into play. Hoping the administrators of the fund wont buy lions for themselves.

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  14. Mutati, GRZ saving can not only be burdened by the poor, get lead of the district commissioners. What job do they do other than rigging election? There will be a huge saving.

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  15. 1st Question IMF should ask PF is “where did u take EUROBond?” Where is the High-Speed rail planned by Prof. Chirwa?

    Those who voted for PF00Lish Govt should pay back the money. After all its their cadres who are awarded Govt infrastructure Tenders.

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  16. We gave these fools the information about the PFools not having governance knowledge. It was chipante pants! Everyone knew that these were blind leaders taking us back to the KK days. That’s why they chose “Dununa reverse as theme song for their campaigns. But Zombies didn’t get the message and still other Zombies are making excuses for the PFools here! So when are you going to grow a brain and understand what’s really at stake in this country?? Are you cursed?

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  17. DUNUNA REVERSE is not just a song without meaning. It means Kicking ZAMBIA into the past. Soon we’ll be having the following:-

    1. SELEMANI/Selejo/Tobomutwe

    2. Mealie-meal coupons

    3. ROP Saladi

    4. Carbolic Soap

    5. Yellow maize

    6. Kwench instead of Coca-cola

    7. Queues for sugars, mealie-meal

    8. No drugs in hospitals (it’s already happening)

    Guys Help me remember those things ….

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    • Those things arrived before the IMF/World Bank. After Chiluba got elected, those entities arrived and mines were sold. Remember correctly.

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  18. IMf is not owaz but. One of th objectives of IMF is “to instil confidence in member countries by making th fund’s resources available to them under adequate safeguards, thus providing them with opportunity to make adjustments in their BoP without resorting to measures that might be inimical to world development”. Yes ABC mismanaged th economy that it has to take som critical decisions 2b bak on th right track. Hopful, th guy can account for th much publised eurobond n th benefits that hv accrued so far.

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  19. Could we also make our former Fat Albert ministers pay back our money. IMF welcome, but put restrictions on government and not the people.

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  20. the subsides have become unnecessary because elections are passed. They fooled those who voted for them, now the real donuna will start.

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  21. Misuse of funds amoungest ministers should also be cut down..! New ministries like ministry of religion are not necessary at present..!

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  22. Continue condemning if you cannot work on your own.lyonse kulapangafye ichongo and if we appoint you to lead you can fail repeatedly baice,senseless opposition,ine i work on my own.

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  23. Welcome IMF.

    For PF cadres enjoy yr dununa reverse misery

    For UPND cadres watch the misery striking PF cadres.

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  24. How much did we borrow from the Euro bonds and other loans compared to this loan from IMF?
    Who has brought us to this stage?
    Any way it is good that the majority compounds who voted for PF will remember the price of bring back PF in government.
    The wise requested them but you helped them.Brace yourself for more economic hardships.
    My daily i come is about K2,000 so am not worried.
    PF for you

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Comments are closed.