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Provide road map to economic recovery, President Lungu urged

Centre for Trade Policy and Development (CTPD) says it expects President Edgar Lungu’s address to the nation this Friday to provide answers to economic and social issues affecting the nation.
Centre Executive Director Isaac Mwaipopo said in a statement that he also expects the Head of State to inform the nation on how Government plans to steer the economy towards recovery, by highlighting categorically what strategies have been put in place to address the debt situation, specifically in terms of a plan of action on debt repayments and public expenditure.
Mr Mwaipopo said he also anticipates the President to answer on how government is going to respond to predictions about Zambia’s macro-economy remaining grim due to effects of Covid-19, forecasts by the international Monetary Fund (IMF) that the economy may contract by up to 5 percent, the inflation hovering around 16 percent in August and the continued depreciation of the Kwacha.
“Judging from these indicators, there are expectations that unemployment will rise as aggregate output contracts and cost of doing business goes up. With rising inflation, it is expected that living standards with deteriorate further. In the face of this unpleasant economic outlook, we expect the President to bring a message of hope which speaks to these pertinent issues, particularly how the Government plans to steer the economy towards recovery,” he said.
He added that the President will also need to restore confidence in the business climate by pointing out clearly what plans are in place to promote domestic economic activity while ensuring that fiscal policies align with national priorities around economic recovery.
“We expect the President to highlight categorically what strategies are in place to address the debt situation, specifically in terms of a plan of action on debt repayments and public expenditure. While we acknowledge the disruption that COVID19 has caused to the implementation of the 2020 budget, the President will need to restore confidence in the business climate by pointing out unambiguously what plans are in place to promote domestic economic activity while ensuring that fiscal policies align with national priorities around economic recovery,” Mr Mwaipopo said.
“Further, as the economic impact- of COVID-19 crisis lingers, we expect the President to provide policy direction in terms of alternative channels through which the country can attract foreign exchange, to improve the country’s foreign exchange position and restore stability of the exchange rate.”
He further added that although there might be pressure to print money given constraints on public revenue, caution must be taken, and instead attention must be given to export-oriented productive sectors, the agricultural sector provides an opportunity for export promotion, within and beyond the region.
“We recommend that the Government be specific and categorical in its support of the agricultural sector in the upcoming 2021 national budget presentation, pointing out precisely what innovative strategies will be in place to bolster production and productivity beyond the existing input support Programmes,”
“We also urge Government to consider seriously the submissions made by CSOs towards the 2021 national budget.”
President Edgar Lungu is this Friday expected to address the nation through the National Assembly during the forth-coming ceremonial opening of the fifth session of the twelfth National Assembly.

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