By Peter Jegwa, LILONGWE
Malawi
President of Malawi, Lazarus Chakwera has suspended all his international trips until march as part of cost-cutting measures following the devaluation of the Malawi Kwacha.
Speaking during his national
address on Wednesday night, Chakwera defended the devaluation saying the
previous rate was not presenting the real value of the Kwacha. He noted that
the devaluation is painful and people in the country need to make adjustments
in spending hence he is setting an example by cutting trips.
The suspension of foreign
trips also extends to all cabinet ministers, heads of statutory bodies and
senior government officials.
“In fact, all cabinet
ministers who are abroad on trips funded by taxpayers should return to Malawi
with immediate effect,” said Chakwera.
The Malawi leader has also
reduced fuel allocations to all government officials by 50% to save money.
The announcement came as his
government is trying to recover from economic challenges after approval of the
US$174 million Extended Credit Facility (ECF) by International Monetary Fund
(IMF) on 15th November, 2023.
On economic hurdles people are
facing, Chakwera assured Malawians that things will improve within 4
months.
He said his government will
use money reserved from the measures to procure maize and fertilizer for
Malawians.
He has also directed Minister
of Finance to consider increasing salaries for civil servants and reduce Pay as
You Earn (PAYE) tax to cushion them from effects of devaluation.
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