Treasury to adjust forecasts downwards, Ministry of Finance PS

Permanent Secretary in the Ministry of Finance and Economic Development George Guvamatanga, says recent rise in economic activities in the country was based on artificial demand as traders sought to get rid of the Zimdollar.

“The economy was overheating; everyone was overtrading & the majority of people who were reporting increased business activity were foreign currency trading; demand was artificial.

“It was artificial demand because everyone wanted to get rid of Zim dollars.

“So there is a readjustment that is required, even the Treasury has to readjust such that even our revenue, we must review them down,” he says.

Meanwhile, Guvamatanga says there is a big misrepresentation of facts that is going on in the market that the Govt stopped making payments, adding that this is not correct.

He adds that had the government stopped paying, it would not have been operational as all its operations would have grounded to a halt.

“What we have said is that we are not paying invoices and contracts priced at parallel market rate, or overpriced.

“Obviously, there are those who are adamant and some who have adjusted, some are adjusting voluntarily without approaching them that we now want to change prices,” he says.

Zwnews