• Electricity tariffs will be increased gradually.
• Increasing electricity tariffs will prove to be harsh on Zambians but is beneficial for the country in the long run.
• Government is aware that there is need for more investment in electricity

Minister of Finance and National Planning has disclosed that government will hike electricity tariffs gradually over a period of five years.
Speaking during a Private Sector engagement forum on the International Monetary Fund (IMF) bailout program, Dr. Situmbeko Musokotwane said increasing electricity tariffs will prove to be harsh on Zambians but is beneficial for the country in the long run.
“Government is aware that there is need for more investment in electricity but there will be a minimal increase of electricity tariffs over a period of time, “he said
Dr. Musokotwane also revealed that the funds that were used to subsidize fuel will be channeled to other equally important sectors of the economy such as education and health.
He further explained that it was necessary for Zambia to get the IMF support programme as the country was in debt distress.
“In the previous Government, the economic environment was corrupt resulting in the high exchange rate as well as high inflation, this was because of the heavy indebtedness,” Dr. Musokotwane said.
He however stated that subsidies on Agriculture will be maintained.
Speaking at the same event, Ministry of Finance Permanent Secretary in charge of Budget and Economic Affairs Mukuli Chikuba said there are no hidden conditions for the bailout package apart from what the Ministry has already published.
“Some of the measure that government discussed with International Monetary Fund (IMF) is that government will reduce the fiscal deficit and will not borrow from the Central Bank,” he stated.
Meanwhile, IMF representative Preya Sharma said the Fund will continue to offer technical assistance and capacity building to Zambia until the country’s debt levels are sustainable.
Last week, International Monterey Fund (IMF) Executive Board approved a 3 year support program of US$ 1.3 billion based on Zambia’s homegrown economic reform plan that aims to restore macroeconomic stability and foster higher, more resilient, and more inclusive growth.