Securing IMF bailout is urgent, says Former Finance Minister Felix Mutati

Former Minister of Finance, Felix Mutati has said that securing a financial bailout from the International Monetary Fund (IMF) has now become a matter of urgency. Mr. Mutati said that if Zambia does not secure the $1.3 billion government is seeking from the IMF, there will be a significant deficit on the 2019 national budget.

Speaking during a public forum organized by the Association of Chartered Certified Accountants (ACCA) in Lusaka, Mr. Mutati said the 2019 national budget will actually unhinge.

Mr Mutati said that the the country therefore has no option, but to ensure that its engagements with the IMF result in, among other things, the rise in the confidence of investors in the Zambian economy.

Mr Mutati also observed that the bad weather forecasted for 2019 also poses a risk to the Zambian economy as there is a likelihood that the agriculture sector and power generation will be affected.

Mr. Mutati also said that he further foresees the Zambian economy being affected negatively if the toxic conversation on alternative facts being generated within the country continues in 2019.

Mr. Mutati has also observed the need to the deal with the risk of the pace of fiscal consolidation particularly with regards the implementation of the austerity measures.

Source: Lusaka Times