Zambia has ruled out using its foreign exchange reserves to subsidise petroleum products despite rising fuel prices and pressure on consumers.
Vice-President Mutale Nalumango said the reserves were a critical national asset needed to safeguard economic stability and maintain the country’s borrowing capacity.
Speaking during Vice-President’s Question Time in Parliament, Mrs Nalumango said the government had no immediate plans to draw on the reserves to cushion consumers against higher fuel costs.
She said the government had instead adjusted fuel-related taxes, including customs duty and Value Added Tax (VAT), to ease the burden on consumers.
Mrs Nalumango also cited the Social Cash Transfer Programme, Cash for Work and Free Education as part of broader measures to support vulnerable households and address the rising cost of living.
She maintained that the government would continue implementing measures to ease economic pressures without compromising the country’s financial stability.
Credit: ZNBC Today
