By Mercy Matonga, Kingsley Jassi & Daniel Zimba:

Finance Minister Simplex Chithyola Banda is expected to present the 2025-26 national budget today, amid growing pressure from stakeholders due to the escalating cost of living.

The economic crisis, worsened by dwindling foreign exchange (forex) reserves, has made imports and goods produced using imported raw materials unaffordable for many consumers.

This has caused widespread discomfort, with consumers uncertain about prices from one day to the next.

Following Tuesday’s demonstrations by second-hand clothes sellers in Lilongwe over the rising cost of bales, their counterparts in Blantyre also took to the streets Thursday.

By press time Thursday, it was reported that traders in Zomba City were also planning protests for today.

Chithyola Banda will need to navigate these numerous challenges and announce a new economic direction to recover the struggling economy, according to observers.

This will be the final budget for the current Malawi Congress Party-led administration ahead of the General Elections on September 16.

Malawi Economic Justice Network Executive Director Bertha Phiri has called for measures to stabilise inflation, including effective monetary policies, diversifying imports to alleviate foreign exchange shortages and strengthening local production to reduce reliance on imports.

Phiri further urged prudent fiscal management, including controlling excessive expenditure, improving revenue collection and ensuring efficient budget execution.

“Establishing a clear debt management strategy that prioritises concessional borrowing, timely debt servicing and transparent public debt reporting is essential to prevent fiscal strain and future economic instability,” she said.

With inflation rising and revenue performance low, pressure continues to mount from all directions, prompting experts and development partners to advocate for stringent measures in the upcoming fiscal policy.

Organisations such as the Economics Association of Malawi and the World Bank have called for a budget that aims to reverse the borrowing trend to reduce public debt.

They have also emphasised the need to curb leakages, save public resources and prioritise spending on critical areas and high-yielding investments.

The upcoming budget will follow the 2024-25 national budget, which faced difficulties at the half-year mark as the initial K5.99 trillion expenditure plan missed several key targets, including revenue, expenditure, growth rate and inflation.

At that time, fiscal pressure also mounted, largely due to donor fatigue, as expected inflows were more than 60 percent below target at the half-year mark.

For 2025-26, the recent pause in international aid by the United States, one of Malawi’s largest foreign development partners, introduces