By Shalom Sambaudye

Main opposition Democratic Progressive Party (DPP) has called on the government to implement necessary measures that will cushion the majority of people who rely on public services and subsidies from the effects of policy measures necessitated by the Extended Credit Facility (ECF) program.

A statement signed by spokesperson Shadric Namalomba says that the ECF program has conditions which may involve fiscal consolidation, reduced public spending and structural reforms to boost economic competitiveness.

“Government expenditures will be aligned to revenues collected, meaning that suppliers of Government are at risk of not being paid for their services. Already IMF has noted that government is defaulting on its creditors. This is therefore likely to persist and will result in the increase of government arrears,” reads the statement in part.

According to the statement, the exchange rate will also be guided by forces of supply and demand meaning that Malawians should brace themselves for major devaluations.

“This will make all imported items such as fertilizers, petroleum products and other raw materials expensive,” the statement reads.

Malawi is expected to receive a $174 million (about K195 billion) financing arrangement from the International Monetary Fund (IMF) in order to address the current socioeconomic challenges.