The International Monetary Fund has warned Tunisia against reducing donor support, in light of the faltering urgent reforms, chiefly the reduction of the wages’ bill, the decrease in public debt and the lessening of public expenditures, as the dissolution of the public budget has caused great pressure.
The head of the International Monetary Fund's mission in Tunisia, Chris Gereigat, affirmed that Tunisia should reduce its public debt and cut the expenditures to the required level. He also pointed out that "the Tunisian authorities are required to strengthen their efforts in the field of good governance, transparency and combating corruption, which will reduce the excess expenditures and create new job opportunities."
Gereigat called for "the necessity of establishing a public authority to supervise state-owned enterprises in Tunisia. As well as supporting investment in the private sector, especially in the fields of green and digital economy, by opening up to competition and improving the infrastructure for ports with a reduction in administrative procedures."
According to the International Monetary Fund, the public sector wage bill is 17.6 percent of GDP, and is considered among the highest in the world. Noting that the monetary policy should focus on inflation by directing short-term interest rates while maintaining exchange rate flexibility.
Source (Al-Arab London-based Newspaper, Edited)
