An economic expert has described as unrealistic, the demand by the private sector of over K1.8 trillion bailout package for companies hurt financially by the Covid-19 pandemic.
The demand for the aid package from government comes at a time during a time when the coronavirus crisis has also negatively affected economic progress of the private sector.
But Chancellor College based economics Professor Ben Kaluwa has questioned the timing behind the financial rescue.
“K1.8 trillion over what period? Is it for calendar budget year or years? Because otherwise that kind of financing from the perspective of Malawi Government is not realistic expectation,” questioned Kaluwa.
He added that it is impractical for government to release such huge sums of money considering that government itself it is struggling to cope up with impact of the same outbreak.
“The government will be getting that revenue from the private sector itself which is also struggling, so by struggling in business it means that it will struggling to pay taxes so it’s like cat and mouse problem, it’s not going to work” said Kaluwa.
In the past 24 hours, Malawi has registered five new Covid-19 cases totaling the number to 284 ever since the first case was recorded in April.