The Maldivian Democratic Party (MDP) Parliamentary Group (PG) has announced its endorsement of the government’s proposed Economic Reform bills, aimed at addressing the financial difficulties currently facing the country.
In a press conference held at the Parliament offices yesterday, South Hulhumale’ MP Dr Ahmed Shamheed confirmed the party’s support for the reform bills. He noted that three key reform bills are currently under parliamentary review, all of which the MDP will endorse. These reforms include critical agenda items such as subsidy reform, which was highlighted in the MDP’s proposed budget for 2024.
“This includes the reform agenda which MDP proposed budget for in 2024, such as subsidy reform, that is something we support,” stated Dr Shamheed. However, he made it clear that the MDP will not support reducing the price of fish, a staple in the Maldivian economy.
Dr Shamheed emphasized the necessity of reducing political appointments and operational costs to alleviate financial pressure. He revealed that around MVR 700-800 million has been spent on salaries for political appointees, marking them as one of the largest expenses.
“Unless we bring down these expenses, we cannot convince international financial institutions that we are serious about saving Maldives,” he asserted.
Dr Shamheed further stated that the MDP would support actions aligned with the advice from international financial institutions to ensure sustainable economic reform.
Kendhoo MP Mauroof Zakir raised concerns about the transparency of political appointments. He stressed the importance of providing information in response to Right to Information applications to determine the exact number of political appointees. The government’s continued refusal to disclose these details has led to significant concern, prompting the submission of an emergency motion to parliament.
The emergency motion, submitted by South Galolhu MP Meekail Naseem, regarding the government’s failure to disclose the number of political appointees and the amount spent on salaries at State-Owned Enterprises (SOEs), was rejected by parliament on Tuesday.
In response to the financial crisis, President Dr Mohamed Muizzu has decided to halt new appointments to senior political positions. The President’s Office has also committed to releasing the number of current political appointments, aiming for increased transparency.
As the Maldives navigates its economic challenges, the endorsement of these reform bills by the MDP PG represents a significant step towards financial stability and reform. The corporate sector and international stakeholders will be closely monitoring the implementation of these reforms and their impact on the overall economic landscape of the Maldives.
