“Should people decide to allow the PF to continue for another 5 years, here are the likely situations; ( these are purely my personal reflections and should not be misconstrued to be YOUR reality).
1. The suspension of the 16% VAT on fuel is likely to be lifted because it’s not sustainable. The fuel transporters may also ask that their $10 surcharge is reinstated. That will push fuel prices above K36 per litre. We all know what comes with fuel increases; increase in all commodity prices.
2. The debt repayments that we suspended, have been accumulating interest and interest on interest. The collectors will come knocking our doors. Our coffers will be suffocated and depleted to the extent will be begging to exchange some of that debt with our national assets.
3. Due to increased food prices as a result of point 1, inflation will rise significantly eroding people’s incomes and making it hard to make ends meet.( my guess here is as good as yours, this might lead to instability)
4. With the Kwacha’s continued depreciation, importers of goods and services will have a tough time bringing things in the country. This could lead to shortages of certain essential goods especially those that are not substitute goods.
5. With high inflation