Deputy Speaker of Parliament Ahmed Nazim has raised concerns over delays in implementing key economic reforms, highlighting inconsistencies in policy decisions and a decline in state revenue. Speaking during a Finance Committee meeting, he pointed to the reversal of a Finance Ministry decision on retirement benefits as an example of the government’s reluctance to move forward with necessary reforms.
The Finance Ministry had initially announced plans to standardise retirement benefits across different groups, stopping certain allowances for newly retired employees from January. However, this decision was reversed following public opposition. Nazim noted that while the policy aimed to address inconsistencies in retirement laws, its sudden withdrawal suggested a lack of commitment to long-term economic stability.
Concerns were also raised about potential large-scale retirements in the public sector, particularly in customs, where around 200 employees could leave at once. The Finance Ministry’s initial move to adjust benefits may have influenced retirement decisions, but the reversal of the policy indicated hesitation in enforcing fiscal discipline.
Beyond retirement policies, Nazim criticised the broader stagnation in economic reforms. The Finance Committee had previously discussed the matter with the International Monetary Fund (IMF), which had expressed concerns over the slow pace of implementation. He called for the committee to take a more proactive role in reviewing laws and ensuring reforms move forward.
Declining government revenue was another key issue highlighted during the discussion. As of early February, total state revenue had fallen by 19% compared to the same period last year, with significant drops in tax revenue and import duties. A key factor contributing to the decline was a reduction in cigarette imports, as businesses had stockpiled products ahead of a price increase. This shift, while expected, had not been clearly communicated to the public.
Nazim warned that if revenue continued to decline in the coming months, expenditure cuts would be unavoidable. He called for a more structured approach to reforms, stressing the need for clear deadlines and commitments from the government. The Finance Committee is expected to seek an update from the recently appointed reform commissioner to assess the progress of ongoing economic measures.
With fiscal challenges mounting, the urgency to implement reforms remains a pressing issue, as failure to do so could further strain the country’s economic stability.
