Malawi government on Tuesday said the 18 month economic recovery plan it has unveiled will cushion Malawians from the effects of some economic policy reforms the PP government adopted upon assuming power in April.
The reforms included the devaluation of the local currency by 49%.
Malawi’s Minister of Economic Planning and Development, Mr. Atupele Muluzi told reporters that some of the economic decisions will be reviewed from time to time to ensure that nothing derails the recovery plan.
“We have already effected reforms on exchange rate and fuel situation…we intend to bring down inflation to a single digit. We are sure the plan will turn tables,” said Muluzi, a UDF aspiring presidential candidate in 2014 whose party is in a coalition with the ruling People’s Party.
Among other policies that have been heavily criticized by the public is Automatic Pricing Mechanism in which local fuel prices are dictated by forces on the international market.
Malawi’s leading consumer rights activist, Mr. John Kapito told Zodiak Online recently that the system is economically injuring Malawians.
“The economy has reached dangerous levels, everything is going upwards,” said Kapito.
However, Mr. Muluzi assured that government will reduce inflation from the current 21.7 percent to 18.4 percent by December this year.
On cushioning Malawians, the minister said Farm Input Subsidy Program, Public works Program, Village loans and Social Cash Transfer are some of the measures government has put.
Speaking at the same news conference, Information minister Mr. Moses Kunkuyu said government is committed to pursue cost cutting measures to put the economy back on the track.
“For example, by not using the presidential jet for the past two months, government has saved about K300 million,” said Kunkuyu.