The government will disburse MVR 2.3 billion to private businesses and award several development projects to private construction companies within the next 10 days, according to President Dr Mohamed Muizzu.
The payments are intended to settle outstanding bills carried over from the previous administration and are expected to inject liquidity into the economy, with particular benefits for small and medium-sized enterprises (SMEs).
The President outlined that upcoming projects would include schools, health centres, mosques, and sports facilities, which will be contracted to private firms. The government views this as a way to revitalise the construction sector, which has seen stagnation in recent years.
The announcement follows increased public discussion surrounding a recent bond transaction between the Pension Office and the Maldives Monetary Authority (MMA). Opposition figures have questioned whether the transaction, involving the sale of a government bond on the secondary market, could be equivalent to monetary expansion. However, the administration has maintained that the measure does not amount to printing money and is part of its broader fiscal management strategy to settle arrears owed to contractors and suppliers.
The Ministry of Finance has yet to release formal details of the transaction, though officials cited by local media indicated that proceeds would be directed toward clearing pending payments.
The government’s renewed focus on involving private companies in infrastructure development comes amid concerns that many major projects have been channelled through state-owned enterprises (SOEs) in recent years. Several SOEs have faced criticism for operating outside their original mandates, prompting calls for greater private sector participation.
Despite a capital expenditure budget of MVR 12.6 billion for this year, only MVR 3.5 billion has been spent to date, according to official figures, suggesting a significant gap between planned and actual project implementation.
