Saleem attributes economic challenges to past debt, asset leases

Parliamentarian Ahmed Saleem of the People’s National Congress (PNC) stated that the current economic challenges in the Maldives are a result of debt accumulation and the lease of islands and lagoons by previous administrations.

Saleem, who is also Vice-Chairperson of the Parliament’s Public Accounts Committee, made these remarks during a sitting held on Monday night while responding to criticism from the opposition regarding the government’s handling of the economy.

According to Saleem, the government’s revenue has increased, but the economic situation remains constrained due to previous administrations' financial decisions. He noted that borrowing under past governments exceeded the value of the returns and that state-owned assets, including islands and lagoons, were sold below market value.

Saleem argued that the current government, under President Dr Mohamed Muizzu, has refrained from similar practices, stating: “We could also print money, borrow heavily from abroad, and sell more islands at low prices to raise revenue. But this administration has chosen not to follow that route.”

He added that while there are assets that could be sold to raise funds, doing so would be detrimental to the long-term interests of the country.

Saleem said the government was managing economic affairs using available resources, without relying on unsustainable borrowing or asset sales. He credited President Muizzu for this approach and said such a strategy avoids increasing the national debt further.

He also responded to the opposition’s claims regarding stagnant state revenue by alleging that past administrations were involved in financial misconduct. Saleem claimed:

Saleem said these matters had been studied by the Parliament’s Finance Committee and should be disclosed to the public. He stated that he had expected financial challenges but did not anticipate the scale of the damage until after the transition of power.

He added that the current administration does not require private businesses to finance salary payments, a practice he alleged was previously used.

Saleem concluded by saying that the administration inherited a worsened economic situation and that correcting it would take time, but necessary steps were being taken to address the issues.