The Libyan House of Representatives is exploring options to address the country's ongoing economic imbalances, including a potential shift from subsidizing goods to direct cash subsidies. This move is part of proposed reform efforts aimed at correcting economic imbalances and protecting citizens' rights and living standards. According to a statement issued by the House, this does not mean an immediate cancellation or replacement of the current subsidy system.
A consultative meeting on Libya's economic crisis was held last Wednesday, initiated by the National Planning Council and instructed by House Speaker Salehin Abdelnabi. The meeting brought together experts in economics, finance, and oil to discuss the consequences of the crisis on living conditions, public finances, and the future of Libya's economy. The Speaker warned about the seriousness of the crisis, citing rising inflation, declining purchasing power, and increasing burdens on Libyan families, especially those with limited incomes.
The Speaker tasked the expert team with preparing practical studies and plans to correct economic imbalances. He called for effective mechanisms to control the import and distribution of fuel, ensure supplies reach actual consumers, and limit waste, smuggling, and exploitation to safeguard public funds. The meeting also discussed reforming the subsidy system to guarantee aid reaches eligible citizens and address deficiencies within the current framework.
Proposed solutions should not harm essential rights or add extra burdens on citizens. Participants reviewed various options for correcting associated financial and economic problems. The House of Representatives stressed that protecting citizens and guaranteeing fair benefits from public resources remain central to any economic reform effort. The proposal to shift from goods subsidies to cash assistance is under review only, not a final decision to change or abolish subsidies.
According to the House, any move to introduce this reform depends on completing technical and economic studies, ensuring necessary safeguards, and confirming state institutions' readiness to deliver benefits to the intended recipients. This process should protect purchasing power and prevent any negative impact on living standards. The House emphasized that no decision will be made until all necessary studies are completed, requirements are met, and safeguards are in place.
The House concluded by calling for a transition from diagnosing economic problems to developing practical and implementable solutions, under an integrated national vision aimed at ensuring economic stability, the protection of citizens' rights, the preservation of public resources, and the foundation of a more sustainable and efficient Libyan economy. The House of Representatives remains committed to finding effective solutions to the country's economic challenges.
The economic crisis in Libya has had a significant impact on the country's citizens, with rising inflation and declining purchasing power. The House of Representatives is working to address these issues through a series of economic reforms, including the potential introduction of cash subsidies. Key points include:
Key points
- The Libyan House of Representatives is considering a shift from goods subsidies to cash aid as part of economic reform efforts.
- The proposal is under review and no decision will be made until all necessary studies are completed and safeguards are in place.
- The House is working to develop practical and implementable solutions to address the country's economic challenges.
