Faisal urges govt action over global economic impact of Middle East war

Former Vice President Faisal Naseem on Sunday called on the government to take action to address the economic impact of the conflict in the Middle East.

Faisal said the Maldives should take measures before the effects of changes in the global economy worsen.

The conflict began after the United States and Israel carried out attacks on Iran. The developments have led to changes in the global energy market.

Among the impacts reported so far are increases in oil prices in the global market and higher costs for oil imports.

Airlines have also begun increasing fuel surcharges as fuel prices rise.

Iran’s decision to close the Strait of Hormuz, a route used for global energy shipments, has disrupted the transport of oil and gas and affected gas supply in the Maldives.

Some flights have also been cancelled and tourist arrivals have declined.

Faisal said countries with larger economies have already begun taking measures, while some business operators have raised concerns that the Maldives has not taken similar steps.

He said the world is facing a war and warned that if the conflict continues, the Maldives could face economic losses.

Faisal called for the formation of a task force led by President Mohamed Muizzu to manage the country’s response.

“Do not take this lightly and take measures before it is too late,” he said.

Faisal also made several recommendations to the government.

He called for a halt to recruitment for jobs created to increase political support and said government spending should be reduced.

He also urged authorities to provide clear information to the public instead of suggesting that there is no cause for concern.

Faisal said the government had assured the public last week that there would be no shortages of oil, gas and food items, but gas supply issues have since emerged.

He said that after the COVID-19 pandemic, much of the Maldives’ trade has been linked to the Middle East. Goods are either imported directly from the region or transported through it.

Faisal said the government currently spends about $50 million each month on oil and that the amount could increase to $75 million if prices continue to rise.

He said the cost of oil imported by private businesses would also increase.

According to Faisal, higher fuel costs could lead to increased operating costs for resorts and other private businesses.

He said the situation could also affect small businesses and employment.

“It is important to form a task force led by President Mohamed Muizzu to manage the country’s affairs on a daily basis at such a time,” Faisal said.