Some bitter pills may have to be administered-Chakwera

Chakwera and Chilima

President Lazarus Chakwera has said there is no medicine his administration is not prepared to administer to Malawi's ailing economy to bring about recovery in the long term.

Chakwera has been vague about what exactly his administration will do so, only saying even "if it means swallowing some bitter pills in the short term."

Chakwera's government is sailing through troubled waters as the country goes through scarcity of forex.

The official foreign exchange rate is pegged at K825 but on the ground, the local currency is trading is at K1,200- K1,500.

Banks have also resolved to putting caps on how much forex to give to people signalling shortage is severe.

Maize prices have soared averaging K250 per kilogram translating to K12,500 per 50 kilogram bag.

The country is facing a drug shortage problem with Central Medical Stores asking for a bail out package of K12 billion and prioritisation of forex to them.

The 2022/2023 fiscal deficit is projected to average 10.9 percent of the Gross Domestic Product (GDP)according to the Economist Intelligence Unit (EIU).

The government has put the fiscal deficit to average at seven percent of the GDP. 

The President explained he is dedicated to address "one major issue affecting Malawians: the economy."

Despite not disclosing what they talked about, he met Vice President, Saulos Klaus Chilima who met with International Monetary Fund's (IMF) Managing Director in the US two weeks ago.

Chilima also lobbied for support for a recovery plan when he also met the International Development Finance Corporation's CEO.

Chakwera on Wednesday morning met Minister of Finance and the Governor of the Reserve Bank designing solutions for the problems in the economy.

IMF is visiting Malawi up later this month but in their projections slashed the country's real GDP from 3.5percent to 2.7 percent.