Fayyaz criticises govt focus on elections amid economic risks
Fayyaz said the government has not taken sufficient measures despite forming a committee to address the situation.
Former Economic Minister Fayyaz Ismail on Monday criticised the government for focusing on the upcoming council elections instead of addressing the economic impact of the conflict in the Middle East.
Fayyaz said global oil prices have risen above $100 per barrel and are expected to increase further. He said higher fuel costs and a decline in tourist arrivals from the Middle East could reduce state revenue.
In posts on social media, Fayyaz said the government has not taken sufficient measures despite forming a committee to address the situation.
Fayyaz, who also served as chairman of the Maldivian Democratic Party (MDP), said the government had been managing the economy poorly before the conflict.
He said public spending had increased and political appointments in state-owned enterprises and government institutions had expanded.
“The entire private sector businesses were brought under the government,” he said.
Fayyaz warned that if current policies continue, the Maldives could face serious economic difficulties.
“If careful and prudent measures are not taken, the entire economy could go into breakdown. However, the government has ignored calls to prepare for the situation and focused on the council election campaign,” he said.
He said the conflict has already affected supply conditions, with reports of increased demand for gas and higher fuel prices leading to increased transport costs.
Fayyaz said these developments could lead to higher prices for goods.
He also said it is important to ensure continuity of water supply during the upcoming hot season.
Fayyaz called for measures similar to those taken by other countries in the region, including reducing public expenditure and preparing for a prolonged conflict.
He also raised concerns about the country’s financial position, noting that a $500 million sukuk loan is due for repayment next month.
Fayyaz said the government has not presented a plan to manage the repayment or secure refinancing.
“The government cannot show a party that will refinance at an acceptable rate. The biggest concern is that the government is influencing the Maldives Monetary Authority and state-owned companies without taking the required steps to address the situation,” he said.
