Latest news with #economicreforms
LBCI
15 hours ago
- Politics
- LBCI
Lebanon scrambles to finalize response to US plan on Hezbollah arms and border deal — here's what we know
Report by Yazbek Wehbe, English adaptation by Karine Keuchkerian A committee of advisers appointed by Lebanon's president, parliament speaker, and prime minister is drafting a comprehensive response to U.S. proposals. These include the disarmament of Hezbollah and Palestinian factions, the demarcation of the Lebanese-Syrian border—particularly regarding the Shebaa Farms—and advancing economic and political reforms. The presidency is represented by a senior military officer, the parliament by a political adviser, and the government by a diplomat, with support from technical experts. The secrecy surrounding the process stems from the belief that this response represents Lebanon's last critical opportunity, having previously squandered multiple chances. Lebanese officials are racing to finalize the response before July 7, the tentative date for U.S. envoy Tom Barrack's return to Beirut. They understand that Washington expects a clear, detailed plan with a timeline to be met by gradual reciprocal Israeli measures—such as phased weapons handovers in exchange for withdrawals from specific areas and the release of detainees. LBCI has learned that a significant portion of the response has already been drafted. Lebanon has agreed to some points, while others require clarification—chief among them the 'step-for-step' principle. Beirut maintains that because Israel occupies part of its territory, Israel must take the first step before Lebanon reciprocates. Regarding the Shebaa Farms, Lebanon plans to submit documents to relevant parties, including the United States and the United Nations, to prove its claim to the area. It is also willing to accept a U.N.-supervised demarcation process. The U.S. envoy has made Lebanese-Syrian cooperation on border issues a condition for moving forward to avoid future disputes. Meanwhile, Parliament Speaker Nabih Berri is eager to finalize a comprehensive proposal and initiate implementation in July. Hezbollah has adopted a relatively flexible position but insists that Israel must begin its withdrawal, halt attacks, and release detainees to reassure its support base before any decision is made. Once the response is complete, the committee will present a proposed timeline to the Americans, who are seeking swift progress. On-the-ground coordination will reportedly involve the ceasefire monitoring committee, which will convey Israeli requests to the Lebanese army regarding the disarmament of specific sites. LBCI also learned that Washington has pledged to persuade Israel to adopt the 'step-for-step' approach once Lebanon finalizes its response and issues a cabinet declaration affirming that all arms will be under state authority. In return, Lebanon is seeking U.S. guarantees that Israel will fulfill its commitments and help resolve any outstanding issues in the event of Israeli obstruction. The structure and substance of Lebanon's response will be central to any potential agreement. Beirut recognizes that the time for political maneuvering has come to an end.
Zawya
3 days ago
- Business
- Zawya
International Monetary Fund (IMF) Executive Board Concludes the 2025 Article IV Consultation with Libya
The Executive Board of the International Monetary Fund (IMF) concluded the Article IV Consultation with Libya.[1] The Executive Board's decision was taken on a lapse-of-time basis. Real GDP growth is estimated to have declined to around 2 percent in 2024 from 10 percent in 2023, driven by a contraction in the hydrocarbon sector. At the same time, non-hydrocarbon growth remained robust on the back of sustained government spending. Both the current and the fiscal accounts have swung from a surplus in 2023 to a deficit in 2024. Reported inflation remained low. The outlook continues to be dominated by developments in the oil sector. Real GDP growth is projected to rebound in 2025, primarily driven by an expansion of oil production, before moderating to about 2 percent over the medium term. Non-hydrocarbon growth is set to remain between 5 and 6 percent in the medium term, supported by sustained government spending. The current account is slated to post a small surplus in 2025 (0.7 percent of GDP) before turning into a small deficit over the medium term, as oil prices remain subdued. The fiscal balance is projected to remain in deficit—albeit at a much lower level than in 2024—under the weight of continued large government spending. Risks are tilted to the downside. Domestic risks stem from political instability, potentially evolving into active conflict, disrupting oil production and exports, and preventing progress on much-needed economic reforms. The economy is exposed to global downside risks through its heavy dependence on oil exports and a large import bill. Executive Board Assessment[2] Economic activity and fiscal and external accounts are poised to remain heavily dependent on developments in the oil sector and subject to downside risks. Following a rebound in oil production, economic growth is expected to be in double digits in 2025, before moderating over the medium term. Despite the expected increase in oil exports, the current account and fiscal balances are set to remain in deficit over most of the forecast horizon, weighed down by the projected softening of oil prices and large fiscal spending. The outlook is subject to downside risks, including the potential intensification of domestic political tensions, which could disrupt oil production and exports, and adverse global economic and geopolitical developments, which would put additional downward pressure on oil prices. To mitigate these risks, accelerating reforms aimed at restraining fiscal spending and diversifying the economy away from oil will be crucial. Controlling expenditure will be key to ensure sustainability and to achieve intergenerational equity. The authorities should remain steadfast in their efforts to agree on a unified budget that outlines priority spending and enhances the transparency and credibility of government fiscal operations. Until such an agreement is reached, pressures to increase spending on salaries and subsidies should be resisted. Over the medium term, a sizable adjustment will be required to set the fiscal position on a sustainable trajectory and preserve intergenerational equity. The adjustment should be carefully designed to rationalize current spending, particularly wages and energy subsidies, and mobilize non-oil revenues, while maintaining capital expenditures at levels that support economic diversification. A well-designed monetary and exchange rate policy framework will be essential to help manage economic cycles and mitigate the depreciation pressures. Introducing a well-defined policy rate will enhance the CBL's capacity in smoothing the economic cycle and alleviating pressures on the dinar and provide a benchmark for the pricing of credit by both conventional and Islamic banks. Phasing out the foreign exchange tax alongside other exchange restrictions in line with Libya's Article VIII obligations will reduce distortions, lower economic agents' need to resort to the parallel market and help unify the exchange rate. Reforms are needed to reinforce the banking sector's contribution to economic activity. Impediments to a more active role by banks in the economy remain pervasive. Introducing well-designed savings plans will help to reduce cash hoarding, expand banks' deposit base, establish bank-customer relationships, and support the provision of credit to the private sector. Enhancing transparency and accountability within the banking sector and promoting financial literacy among the public would foster confidence in banks and increase their footprint in Libya's economy. Strengthening the AML/CFT framework, including by aligning it with international standards, will be paramount to support the stability of correspondent banking relationships and to ensure that Libyan banks' operations remain uninterrupted. Structural and governance reforms would foster the emergence of a diversified, sustainable, and private sector-led economy. Forging a comprehensive reform program aimed at reducing dependence on oil revenues should be at the top of the authorities' agenda. Key elements of the reform program should promote a more active engagement of the private sector in economic activity, including by enhancing the business environment and access to finance and introducing labor market measures that encourage private sector employment. Taking decisive actions to tackle corruption, strengthen governance, and enhance the rule of law will support economic diversification further. There is a need to enhance data provision and statistical capacity. Data gaps continue to significantly hamper staff's ability to conduct analysis and provide policy advice. There is a need for the authorities to implement the technical assistance recommendations in the areas of national accounts and external sector statistics, and monetary and financial statistics, and improve data collection and reporting. (Main Export: Crude Oil) Est. Proj. 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 (Annual percentage change, unless otherwise indicated) National income and prices Real GDP (at market price) 28.3 -8.3 10.2 1.9 16.1 4.4 1.6 1.7 1.9 2.2 Nonhydrocarbon 5.9 7.9 -0.6 14.3 2.9 5.9 4.2 4.4 4.8 5.3 Hydrocarbon 45.0 -17.0 17.8 -5.5 25.6 3.6 0.0 0.0 0.0 0.0 Nominal GDP in billions of Libyan dinars 1/ 159.0 208.2 211.9 234.3 251.2 254.2 265.5 277.9 292.0 306.6 Nominal GDP in billions of U.S. dollars 1/ 35.2 43.3 44.0 48.4 47.2 47.7 49.8 52.2 54.8 57.6 Per capita GDP in thousands of U.S. dollars 5.2 6.4 6.4 7.0 6.8 6.8 7.0 7.3 7.5 7.8 GDP deflator 90.4 42.7 -7.6 3.6 -3.3 -3.1 2.8 2.9 3.1 2.8 CPI inflation Period average 2.9 4.5 2.4 2.1 2.3 2.3 2.3 2.3 2.3 2.3 End of period 3.7 4.1 1.8 2.3 2.3 2.3 2.3 2.3 2.3 2.3 (In percent of GDP) Central government finances Revenues 79.5 85.8 73.6 69.8 67.9 61.1 58.5 56.6 54.5 52.4 Of which: Hydrocarbon 78.1 83.9 71.6 55.4 62.1 59.2 56.7 54.7 52.6 50.4 Expenditure and net lending 64.7 62.2 65.4 94.8 73.2 64.6 61.8 59.5 57.1 54.8 Of which: Capital expenditures 10.9 8.4 8.7 34.6 20.1 12.8 12.1 11.4 11.0 10.9 Overall balance 14.8 23.6 8.2 -25.1 -5.3 -3.5 -3.3 -2.9 -2.7 -2.5 Overall balance (in billions of U.S. dollars) 5.2 10.2 3.6 -12.1 -2.5 -1.7 -1.6 -1.5 -1.5 -1.4 Nonhydrocarbon balance -63.3 -60.3 -63.4 -80.5 -67.5 -62.7 -60.0 -57.6 -55.2 -52.9 (Annual percentage change unless otherwise indicated) Money and credit Base Money 2.8 -16.9 47.9 6.6 36.8 9.0 9.2 10.0 10.2 16.7 Currency in circulation -20.0 -1.4 37.6 13.3 10.5 2.2 1.5 5.0 5.0 5.0 Money and quasi-money -20.3 12.0 28.3 12.2 4.0 4.5 4.5 5.0 5.0 5.0 Net credit to the government (Libyan Dinar, billion) -94.1 -114.9 -110.9 -128.8 -130.4 -121.4 -112.7 -104.6 -96.8 -89.3 Credit to the economy (% of GDP) 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 (In billions of U.S. dollars, unless otherwise indicated) Balance of payments Exports 25.9 32.1 30.9 28.4 32.0 31.3 31.6 32.0 32.5 32.9 Of which: Hydrocarbon 24.5 30.0 28.8 26.3 29.9 29.1 29.2 29.7 30.3 29.9 Imports 17.0 17.2 17.7 21.6 21.9 20.5 20.6 20.8 21.0 21.2 Current account balance 5.7 10.0 8.0 -2.0 0.3 -0.3 -0.2 -0.2 -0.1 -0.1 (As percent of GDP) 16.1 23.2 18.3 -4.2 0.7 -0.5 -0.4 -0.3 -0.3 -0.1 Capital Account (including E&O) -7.0 -5.3 -3.8 6.5 -2.8 -1.4 -1.4 -1.4 -1.3 -1.3 Overall balance 2/ 1.1 4.7 4.3 4.5 -2.5 -1.7 -1.6 -1.5 -1.5 -1.4 Reserves Gross official reserves 69.4 74.1 78.4 82.9 81.1 79.4 77.8 76.3 74.8 73.4 In months of next year's imports 32.2 32.8 34.2 29.6 31.0 32.3 31.5 30.5 29.6 28.8 Gross official reserves in percentage of Broad Money 317.0 318.2 261.3 250.3 262.9 246.4 230.9 215.6 201.4 188.2 Total foreign assets 79.7 84.2 88.5 93.6 91.6 89.7 87.9 86.2 84.5 82.9 Exchange rate Official exchange rate (LD/US$, period average) 4.5 4.8 4.8 4.8 … … … … … … Parallel market exchange rate (LD/US$, period average) 5.1 5.1 5.2 6.9 … … … … … … Parallel market exchange rate (LD/US$, end of period) 5.0 5.2 6.1 6.4 … … … … … … Crude oil production (millions of barrels per day - mbd) 1.2 1.0 1.2 1.1 1.4 1.5 1.5 1.5 1.5 1.5 Of which: Exports 1.0 0.8 1.0 0.9 1.1 1.2 1.2 1.2 1.2 1.2 Crude oil price (US$/bbl) 3/ 64.4 89.6 75.0 73.6 66.9 62.4 62.7 63.6 64.3 64.9 Sources: Libyan authorities; and IMF staff estimates and projections. 1/ Nominal GDP data are at market prices. 2/ Includes revaluation of gold holdings of U$10.5 billion in 2024. 3/ The crude oil price was adjusted for Libya up to 2024. [1] Under Article IV of the IMF's Articles of Agreement, the IMF holds bilateral discussions with members, usually every year. A staff team visits the country, collects economic and financial information, and discusses with officials the country's economic developments and policies. On return to headquarters, the staff prepares a report, which forms the basis for discussion by the Executive Board. [2] The Executive Board takes decisions under its lapse-of-time procedure when the Board agrees that a proposal can be considered without convening formal discussions. Distributed by APO Group on behalf of International Monetary Fund (IMF).
Zawya
3 days ago
- Business
- Zawya
Nigeria: Gombe gov reiterates commitment to sustainable economic reforms
Gombe State Governor, Muhammadu Inuwa Yahaya, has reiterated the commitment of his administration to sustainable economic reforms and infrastructure development. The Governor made the assertion when the Presidential Enabling Business Environment Council (PEBEC) held a sub-national stakeholders' engagement session and a statewide Town Hall Meeting in Gombe State, aimed at assessing the state's performance on business-enabling reforms and strengthening alignment with national economic initiatives. The session, which brought together key stakeholders from the public and private sectors, was designed to deepen the implementation of the State Action on Business Enabling Reforms (SABER) and promote inclusive growth through improved regulatory environments at the state level. Inuwa Yahaya, represented by the Commissioner for Finance, Muhammad Gambo Magaji, described the engagement as both timely and strategic. He emphasized that the recognition of Gombe as the top-ranking state in Nigeria for Ease of Doing Business is the result of intentional policies, strong political will, and robust administrative reforms. According to him, 'Our administration has streamlined business registration processes, reduced bureaucratic bottlenecks, digitized land administration systems, and introduced investor-friendly tax policies.' The Governor added that, 'We have also maintained a stable macroeconomic environment with consistent policies that inspire investor confidence, reinforced by the rule of law, low crime rates, and a pro-business regulatory framework.' Inuwa Yahaya further highlighted key infrastructure projects including the Special Agro-Processing and Export Free Zone, the Muhammadu Buhari Industrial Park, and the ultra-modern livestock development zone, as milestones of his administration's drive to create an enabling environment for investment and economic diversification. Delivering her remarks, the Director General of PEBEC, Princess Zahra Mustapha Audu, commended Gombe State for its outstanding performance in business reforms. 'Gombe has consistently set the pace as a shining example of sub-national reform success,' she noted. According to her, 'Being ranked number one in PEBEC's Ease of Doing Business survey for two consecutive years underscores the state's commitment to reform-driven governance.' In his welcome address, the State Commissioner for Trade, Investment and Tourism, Nasiru Mohammed Aliyu, praised PEBEC for its efforts in strengthening Nigeria's economic competitiveness, especially at the sub-national level. He reaffirmed the state's alignment with the national agenda for a business-friendly environment that promotes innovation, productivity, and inclusive growth. Gombe State Government, under the leadership of Governor Inuwa Yahaya, believes it has done more than enough to earn the position of best state in Ease of Doing Business again. And the numbers tell a convincing story. Internally Generated Revenue (IGR) has jumped from below N1 billion in 2019 to over N28 billion today. The state attracts more than $100 million in foreign direct investment annually. More than 1.5 million residents are engaged in skilled and unskilled labour, thanks to a growing private sector. The National Bureau of Statistics (NBS) estimates the state's GDP at $55.5 billion, with investment returns of over 20 percent, particularly in agriculture, renewable energy, and light industry. Much of this progress, state officials say, is the result of deliberate reforms and focused leadership. Processes for registering businesses have been simplified. Land administration has been digitised. The state has also introduced tax policies that are friendly to investors, especially small and medium enterprises. The Gombe administration has also placed a premium on infrastructure development. The Muhammadu Buhari Industrial Park has become a magnet for investment. A seed company recently commissioned there by former President Olusegun Obasanjo stands as evidence that Gombe is now firmly on the map for serious business ventures. Other major projects such as the Special Agro-Processing and Export Free Zone and the International Grains Market have further boosted investor confidence. Copyright © 2022 Nigerian Tribune Provided by SyndiGate Media Inc. (
Malay Mail
20-06-2025
- Business
- Malay Mail
Leaping ahead to continue leading with conviction — Tengku Zafrul Abdul Aziz
JUNE 21 — Malaysia's remarkable 11-spot jump in the IMD World Competitiveness Ranking (WCR) – from 34th position in 2024 to 23rd in 2025 – is more than just a statistical victory. It is a powerful testament to the effective implementation of the Madani Government's economic reforms – including fiscal, industrial and social. For context, the WCR assesses the ability of economies to foster an environment that supports business competitiveness, productivity and economic growth, across four main categories: Economic Performance, Government Efficiency, Business Efficiency and Infrastructure. Malaysia's marked improvement in three out of four areas – especially the leap to fourth among 69 economies in Economic Performance – is no small feat. MITI is especially pleased that our industrial reforms implemented under the New Industrial Masterplan 2030 have contributed to the jump in the rankings in terms of sub-factors such as Domestic Economy (+20); International Trade (+11); International Investment (+2); Employment (+8); Institutional Framework (+11); Business Legislation (+4); Productivity & Efficiency (+19) and the Labour Market (+11). While there is still much room for improvement, this dramatic increase in the rankings is a strong validation that Malaysia's economy is on the right track and we are steadily regaining our competitive edge on the global stage. The reform engine: Miti's coordinating role This surge in competitiveness is not accidental. It is the result of intentional, coordinated, and at times, politically difficult reforms. It reflects a responsible governance approach under Datuk Seri Anwar Ibrahim's Madani Economy framework, and the deft execution by the relevant economic ministries and agencies including Miti, which has led the implementation of Malaysia's revamped trade, investment, and industrial strategies. Miti's agency, the MPC, has led the coordination work on improving the WCR sub-factors across various ministries and agencies. At the heart of this leap is a more aggressive posture on bureaucratic reform and investment facilitation. Miti's leadership of the National Competitiveness Council (JKDSN) together with the Ministry of Finance has driven whole-of-government efforts to streamline investment approvals, reduce regulatory burdens, ease investors' journey and modernise economic policy frameworks. The dramatic increase in the rankings is a strong validation that Malaysia's economy is on the right track and we are steadily regaining our competitive edge on the global stage. — Picture by Firdaus Latif Moreover, the establishment of the Special Taskforce on Agency Reform (STAR) led by Chief Secretary to the Government (KSN) – part of the wider Public Service Reform Agenda (2024-2030) and involving over 1,000 reform initiatives at federal and state levels – has helped dismantle bottlenecks that previously discouraged investors. The improvement in the international trade sub-factor – rising 11 spots to 6th globally – is also clear evidence of targeted policy outcomes under MITI's purview. This includes enhanced investment strategies by the Malaysian Investment Development Authority (MIDA), and improved trade promotion by the Malaysia External Trade Development Corporation (MATRADE). Our efforts in advancing regional agreements and accelerating participation in digital economy frameworks have also contributed to improvement in the rankings. Concurrently, in a world marked by rising protectionism, geopolitical realignments, and economic fragmentation, Malaysia's steady hand in policy continuity is increasingly appreciated by global investors. This competitiveness boost is also a strong endorsement of the NIMP 2030 along with its supporting policies such as the National Semiconductor Strategy and Green Investment Strategy – all of which prioritise high-value industries such as semiconductors, green technology, and digital economy as future growth pillars. Their implementation has already created stronger linkages between industrial policy and talent development, innovation incentives and sustainability goals. Rankings, of course, are not policy goals in themselves – but they do matter. They serve as confidence benchmarks to global markets, foreign investors, and multilateral institutions. A leap of 11 positions makes Malaysia more attractive as a business destination, especially for multinationals seeking resilient and progressive emerging markets in Asia. It also reflects how our institutions – empowered with the political will, mandate and right leadership – are perfectly capable of executing coherent reform agendas for the nation. The road ahead: Maintain the momentum This milestone is cause for celebration, but not for complacency. If anything, the real work begins now. While economic performance and trade efficiency have improved, there remain areas where Malaysia still lags–particularly in innovation capability, workforce productivity, digital transformation, management practices and workforce attitudes. There may be a need to complement structural reforms with human capital upgrades and culture shifts. Global digital and green transitions will require Malaysia to not only adopt new technologies but also to nurture a new generation of skilled, future-ready workers. Here, too, Miti's role will be pivotal. The Ministry will continue working closely with education and human resource agencies to ensure that industrial strategies are matched by robust talent development and pipelines. Initiatives like Academy in Industry programme by MPC, K-Youth under Khazanah Nasional, and upskilling programmes under HRD Corp, must be scaled and better integrated into the national competitiveness agenda. To sustain and further elevate Malaysia's position, it is worthwhile to draw inspiration from international best practices. For instance, Denmark's emphasis on workforce adaptability and lifelong learning ensures that its economy remains resilient and responsive to technological shifts. Meanwhile, South Korea's aggressive investments in R&D and innovation ecosystems have positioned it as a global leader in advanced manufacturing and semiconductors. Malaysia should consider incorporating these elements – such as agile regulatory sandboxes, performance-based innovation grants, and a national work-integrated and lifelong learning agenda – as part of its next phase of competitiveness reforms. More importantly, Malaysia must shift from a primarily input-driven model to one rooted in productivity and innovation-led growth. This means significantly boosting investments in R&D, creating stronger linkages between academia and industry, and nurturing a vibrant startup ecosystem. Malaysia should also emulate countries that rank highly in competitiveness, such as Switzerland, South Korea, and Sweden, who lead in patents, intellectual property, and cutting-edge innovation globally. We can try to achieve this in strategic sectors such as advanced electronics, AI, clean energy, and biotech. Incentivising private-sector innovation, reforming procurement to favour innovative solutions, and enhancing funding mechanisms for techpreneurs will be crucial steps forward. Innovation must be made the 'engine' of our long-term economic resilience and prosperity. It is imperative that we maintain this trajectory. The Government has set a goal for Malaysia to be among the Top 12 most competitive economies by 2033. This is ambitious, but now, demonstrably achievable. It must be stressed that improved economic competitiveness means increased chances of attracting high impact investments which will create more job opportunities with higher wages. This latest ranking shows that Malaysia is not just playing catch-up, but also clearly positioning itself to lead especially in today's complex geoeconomic landscape. Our message to the world has been clear and consistent: Malaysia is serious about economic reforms, open for business and ready for the challenges ahead. Ultimately, Malaysia's improved competitiveness is a function of political will and determined leadership. It shows what can be achieved when a government dares to reform and focus on making tough but necessary decisions for Malaysia's future prosperity. * Datuk Seri Tengku Zafrul Abdul Aziz is Malaysia's Investment, Trade and Industry Minister. ** This is the personal opinion of the writer or publication and does not necessarily represent the views of Malay Mail.
Yahoo
19-06-2025
- Business
- Yahoo
No tax hikes for public as reforms bear fruit, says PMO
KUALA LUMPUR, June 19 — The Prime Minister Office's (PMO) said today that the government is committed to economic reforms but not at the expense of placing additional taxes on the general public. In today's livestream delivered by the senior press secretary to the prime minister, Tunku Nashrul Abaidah, he said the government remained committed to reforming the economy and bureaucracy while ensuring that all policies ultimately benefit the people. 'Malaysia is among the countries with the lowest tax to GDP ratio in the world which is around 12 per cent. This means revenue space remains small and tax based expansion is needed to ensure the country's fiscal sustainability. 'However the government's principle is clear whereby the burden of this will not fall on the wider public,' he said. Nashrul said that tax revenues were reinvested into pro-people programmes like RM13 billion allocated to the Sumbangan Tunai Rahmah and Sumbangan Asas Rahmah reaching nine million recipients. Another RM400 million had gone to refurbish ageing clinics and more than RM600 million spent to fix more than 8,000 school toilets benefitting close to five million students. Apart from that, Malaysia's jump from 34th place to 23rd in the 2025 World Competitiveness Ranking (WCR) marked its best performance since 2020. PMO said this was down to more than 1,000 initiatives under the Reformasi Kerenah Birokrasi to streamline public service delivery. Malaysia also recorded RM89.8 billion in approved investments in the first quarter of 2025 a 3.7 per cent increase from the same period last year. These investments are expected to generate 1,600 new projects and over 33,000 job opportunities nationwide. In the microelectronics and semiconductor sector alone Malaysia secured RM4.6 billion in investment potential and RM507 million in export potential through its participation in Semicon South-east Asia 2025. 'These numbers reflect strong investor confidence in Malaysia's reform direction,' the PMO added.
