Al-Farsi Warns Against Removing Support Without Alternatives

The article by Iyoub Al-Farsi, a member of the Monetary Policy Committee at the Central Bank of Libya, discusses the reasons behind the continued poverty in Libya despite its abundant oil resources. He confirmed that poor management of wealth and over-reliance on government subsidies have contributed to the worsening of the economic crisis. He explained that the decline in purchasing power and deterioration of productive capacities, coupled with a heavy dependence on the public sector, have led to weak economic growth and an increased reliance on imports, despite the country’s extensive natural resources. He pointed out that economic reforms require improving institutional management, achieving stability, and establishing a social safety net before lifting subsidies. He warned that rushing into such measures could worsen citizens’ suffering and lead to an increase in poverty.

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