The Private Sector Development Association (PSDA) has described as positive development the decision by government to release K8 billion economic stimulus package to pay retirees as well as local contractors and suppliers.
Speaking in an interview with Money FM News, Association Chairperson, Yusuf Dodia said it is imperative that the money is paid to local contractors and suppliers to allow them to do business and create wealth.
Mr Dodia noted that recently government had committed K2.5 billion to clear arrears owed to contractors and suppliers in the country.
“I think it is a very positive development because we do need to pay our contractors especially that government had committed a K2.5 billion towards clearing their debt not too long ago,” Mr Dodia said.
“It is important that the money is paid to the contractors to allow them to create wealth”
He further said it is important that retirees are paid their dues because of the fact that in the last three months Zambia’s economy has not been performing well and the move will stimulate economic activities.
“My only hope is that the K10 billion that has been issued by the government to commercial banks to finance small and medium local enterprises is doing its work,” Mr Dodia said.
Yesterday, Cabinet approved in principle the establishment of a K8 billion economic stimulus package that will be financed through the issuance of the COVID-19 Bond and its allocation will go towards the needy areas including payment to retirees, contractors and suppliers.
Cabinet resolved that it is necessary to provide an economic stimulus through the issuance of the COVID-19 Bond in order to improve the liquidity levels in the economy that have reduced due to the Coronavirus pandemic.