PAC chastises government over capitulation to IMF
A quasi-religious body, the Public Affairs Committee (PAC) is advising the government to avoid taking any orders from the IMF and other donors, saying some of the economic pills are disastrous and harmful to the country.
PAC’s advice follows the recent decision by the Reserve Bank of Malawi to devaluate the Kwacha by 44 per cent, which has triggered the rise in cost of goods and services by 50 per cent, hurting the poor most and causing an uproar.
PAC’s spokesperson Gilford Matonga said the recent devaluation of the Kwacha by 44 per cent shows that the government takes orders anyhow and obeys donors instead of Malawians.
Matonga said the Chakwera administration was supposed to discuss with the IMF and make them understand that Malawians are already squeezed economically and devaluing the Kwacha by that margin would just harm the economy further.
Government devalued the Kwacha as a condition to access the IMF’s US$300 million.
The final meeting between the government and IMF is expected to take place on November 15, 2023.
Meanwhile, the Malawi Energy Regulatory Authority (MERA) has adjusted upwards the pump prices for petrol, diesel and paraffin.
According to a statement released by MERA, effective today, Petrol will now be selling at K2530 per litre from K1746 representing a 44.9% increase, diesel will be selling at K2734 from K1920 representing a 42.40% increase and Paraffin has moved up to K1910 per litre from K1261 per litre and this is a 51.47% increase.
MERA has also reviewed upwards the price of electricity with an average of K173.70 per kilowatt from K123.26 per kilowatt.
The statement further says the increases are due to the recent trends in the international petroleum market and changes in local economic fundamentals.
In a related development, the Ministry of Trade and Industry says it has noted with great concern that some manufacturers, traders and suppliers of goods and services have taken advantage of the Kwacha alignment by raising prices of goods and services unreasonably.
According to a statement signed by the Principal Secretary in the ministry, some traders have even temporarily closed their businesses to adjust prices for old stocks that were already in shelves and warehouses before the devaluation.
“It is against this background that the ministry wishes to inform the traders and the general public that hoarding of goods and services to take advantage of price increase is tantamount to unconscionable conduct against consumers,” the statement says.
The statement further says equally the selling of goods and services at excessive and unreasonable prices is a gross violation of the Competition and Fair Trading Act (CFTA) and as such the Ministry of Trade and Industry and the Competition and Fair Trading Commission (CFTC) will not hesitate to take necessary action to deal with traders found engaging in such malpractices.
The Ministry and the CFTC say they have intensified market surveillance on prices of goods and services across the country to establish and gather evidence of possible violation of the CFTA.
On the same, the Malawi Congress of Trade Unions (MCTU) is demanding salary increase for both civil servants and other workers in the private sector.
Charles Kumchenga and Madalitso Njolomole who are officials MCTU say in a statement all employers, including the government, should raise salaries of their employees by 44 per cent in line with the 44 per cent fall of the Kwacha.
In a statement, MCTU says the minimum wage should be raised to K100,000 from K50,000.
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