International Monetary Fund: Libya needs a clear-cut economic strategy and it must reduce the level of spending.

Washington, June 12, 2023 (LANA) - The International Monetary Fund has affirmed Libya's urgent need for a transparent budget that reduces costs associated with high spending on public sector wages and subsidies.

The fund indicated in a report that public sector salaries dominate government spending, as about 2.2 million people - a third of the population - work by default in the public sector, and subsidies and grants amount to about a quarter of spending.

He also noted that fuel subsidies are particularly problematic, with the domestic price of gasoline at 3 cents per liter, the second lowest in the world.

The fund added that Libya needs a clear economic strategy, which represents an opportunity to mobilize the public behind a plan that works to improve the use of oil revenues to diversify the economy, and the success of reforms will depend on achieving a stable political and security environment and developing institutional capabilities.

.. (LANA) ...