Government has been cautioned against accepting any International Monetary Fund (IMF) bailout that will be at variance with the country’s Seventh National Development Plan (7NDP).
The Economics Association of Zambia (EAZ) is advising government to ensure whatever bailout it agrees to is one that creates a path for economic recovery in the short term.
EAZ president Chrispin Mphuka says this is because any bailout programme that completely disrupts the economy to achieve low inflation and high growth will only bring social problems to Zambia.
Dr. Mphuka has told Qfm News that this entails that whatever IMF bailout programme government agrees to should help achieve fiscal discipline.
He however, states that the EAZ anticipates that a bailout from the IMF to achieve fiscal prudence will nevertheless have its own demands.
Dr. Mpuka says his association foresees the IMF demanding that government puts caps on wages and employment in the public service.
He further states that his association also expects to see some structural reforms with some government parastatal being possible targets.
QFM
Deborah Cox
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