Zambian gov't says removal of subsidies will be gradual

The Zambian government said on Friday that it will adopt a gradual process of removing subsidies to lessen the impact on citizens.

The government and the International Monetary Fund (IMF) are expected to resume talks on an economic recovery support program and some of the conditions include removal of fuel, electricity and farmer support subsidies.

Minister of Finance Felix Mutati said the government will remove the subsidies over a period of time as part of the economic recovery program, adding that the government would put in place a social safety impact program to cushion the impact of the removal of subsidies.

He said when he met officials at the Zambian embassy in Washington DC where he has gone to attend the annual meetings of the IMF and the World Bank, that subsidies have remained a huge expenditure for the country, with close to 1 billion U.S. dollars being spent on them hence the government's decision to remove them, according to a statement released by the embassy.

The government, he said, will over the next five years work on an intensive economic recovery program that will, among other things, involve the removal of subsidies. Endit