The Government is geared to embark on a more strategic way of clearing the more than K200 billion debt which it owes the private sector.
Vice President Saulos Chilima made the revelation at this year’s Economics Association of Malawi conference in reference to the K250 billion that Capital Hill owes the private sector.
Captains of industry have often times raised the issue of their unpaid arrears as one of the major challenges stifling growth and productivity of the private sector.
With the pressure exerted by the economic hardships induced by the Corona Virus, most players in the private sector would find relief if their dues are repaid by Capital Hill.
Chilima, who doubles as Economic Planning Minister, states that it is imperative for the government to rejuvenate the private sector by clearing the unpaid arrears with the sector.
While acknowledging the government’s fiscal constraints, Chilima hinted on a possible capital injection to relieve liquidity in companies so as to resuscitate the local economy.
“Although Government does not have resources for a post-COVID stimulus package, this administration recognizes that we can and should rejuvenate the economy through the private sector by clearing arrears, ”Chilima said.
The debts emanate from unpaid water bills by ministries, departments and agencies as well as compensations arising from court cases, unpaid road projects and other unpaid goods and services.