The Consumer and Unity Trust Society (CUTS) has urged the Government to continue its engagements with the International Monetary Fund to secure a bailout package.
Speaking during a media briefing in Lusaka, CUTS programs Officer Kangwa Muyunda said this will require addressing underlying macroeconomic vulnerabilities, implementing policies and priorities needed to restore debt sustainability, revive growth and lower poverty.
Ms. Muyunda said the Government needs to access debt relief as it has done by requesting support under the G20 Debt Service Standstill Initiative among other debt relief programs, which would provide temporary fiscal space in the short term.
She noted the limited resources available following the reprogramming of 2020 Budget should focus on critical sectors including health, education and social protection.
“In light of the current corona virus pandemic and funds expected to be borrowed to fight the pandemic these medium-term debt management strategies are pertinent,” she said.
Ms. Muyunda explained that according to the International Monetary Fund which recently concluded its virtual mission visit, the social and macroeconomic impact of the COVID-19 shock, on top of a severe drought last year, will be heavy.
“Growth is forecast at around 5 percent in 2020 and the number of people living in extreme poverty is expected to increase adding that Fiscal pressures in 2020 have increased due to significantly lower revenue collections and higher spending needs,” Ms. Muyunda said.
She noted that fiscal pressures in 2020 have increased due to significantly lower revenue collections and higher spending needs.