GOVERNMENT should develop a plan to compel the mines to raise commercial invoices locally to ensure that metal sales are receipted through the banking system to prevent capital flight, says National Economic Advisory Council (NEAC) principal policy analyst Dr Oswald Mungule.
Dr Mungule told the Parliamentary Committee on Performance of Balance of Payments that Government should give the mines a reasonable period in which to adjust to the new implementation plan.
“Government should develop an implementation plan to compel mining companies raise commercial invoices locally to ensure that metal sales are receipted through the banking system; they should give them a reasonable period in which to adjust to the new measure,” he said.
He said the implementation plan would help curb capital flight mainly caused by underhand accounting and financial systems.
Dr Mungule said Government should alternatively introduce any other measures that would cause the flow of metal sales receipts into Zambia.
He said such a measure would ensure that metal sales proceeds were receipted in Zambia’s banking system and increase the availability of foreign exchange.
Dr Mungule said there was urgent need for the realignment of commercial and trade policies in the foreign exchange market to curb capital flight.
Meanwhile, Dr Mungule proposed that the exchange rate management function should be transferred from Ministry of Finance to Ministry of Commerce.
He said the transfer would enable currency trading to be treated as a commodity to be regulated under the Ministry of Commerce, Trade and Industry.
“Collaboration is required between the ministries responsible for industry, commerce trade and the ministry responsible for monetary and fiscal policies.
“Thus, the exchange rate management function be transferred from the ministry responsible for monetary and fiscal policies to the one responsible for industry, commerce and trade,” he said.
Dr Mungule said the currency should be treated as a commodity to be regulated by the Ministry of Commerce.