AGL 38.02 Increased By ▲ 0.08 (0.21%)
AIRLINK 197.36 Increased By ▲ 3.45 (1.78%)
BOP 9.54 Increased By ▲ 0.22 (2.36%)
CNERGY 5.91 Increased By ▲ 0.07 (1.2%)
DCL 8.82 Increased By ▲ 0.14 (1.61%)
DFML 35.74 Decreased By ▼ -0.72 (-1.97%)
DGKC 96.86 Increased By ▲ 4.32 (4.67%)
FCCL 35.25 Increased By ▲ 1.28 (3.77%)
FFBL 88.94 Increased By ▲ 6.64 (8.07%)
FFL 13.17 Increased By ▲ 0.42 (3.29%)
HUBC 127.55 Increased By ▲ 6.94 (5.75%)
HUMNL 13.50 Decreased By ▼ -0.10 (-0.74%)
KEL 5.32 Increased By ▲ 0.10 (1.92%)
KOSM 7.00 Increased By ▲ 0.48 (7.36%)
MLCF 44.70 Increased By ▲ 2.59 (6.15%)
NBP 61.42 Increased By ▲ 1.61 (2.69%)
OGDC 214.67 Increased By ▲ 3.50 (1.66%)
PAEL 38.79 Increased By ▲ 1.21 (3.22%)
PIBTL 8.25 Increased By ▲ 0.18 (2.23%)
PPL 193.08 Increased By ▲ 2.76 (1.45%)
PRL 38.66 Increased By ▲ 0.49 (1.28%)
PTC 25.80 Increased By ▲ 2.35 (10.02%)
SEARL 103.60 Increased By ▲ 5.66 (5.78%)
TELE 8.30 Increased By ▲ 0.08 (0.97%)
TOMCL 35.00 Decreased By ▼ -0.03 (-0.09%)
TPLP 13.30 Decreased By ▼ -0.25 (-1.85%)
TREET 22.16 Decreased By ▼ -0.57 (-2.51%)
TRG 55.59 Increased By ▲ 2.72 (5.14%)
UNITY 32.97 Increased By ▲ 0.01 (0.03%)
WTL 1.60 Increased By ▲ 0.08 (5.26%)
BR100 11,727 Increased By 342.7 (3.01%)
BR30 36,377 Increased By 1165.1 (3.31%)
KSE100 109,513 Increased By 3238.2 (3.05%)
KSE30 34,513 Increased By 1160.1 (3.48%)
Print Print 2020-03-31

IMF urges Kuwait to reduce oil dependence, boost savings

Kuwait needs to urgently reduce its dependence on oil revenues and boost savings, despite its vast financial buffers and low levels of debt, the International Monetary Fund said on Monday.
Published 31 Mar, 2020 12:00am

Kuwait needs to urgently reduce its dependence on oil revenues and boost savings, despite its vast financial buffers and low levels of debt, the International Monetary Fund said on Monday.
Kuwait - a major oil exporter - saw its overall economic growth decline to 0.7% last year from 1.2% in 2018, as oil production cuts agreed with OPEC and non-OPEC partners weighed on its oil sector, the IMF said in a report.
The report, based on information available as of March 2, was prepared before the coronavirus outbreak became a pandemic, the Washington-based international lender said.
"It, therefore, does not reflect the implications of these developments and related policy priorities ... The outbreak has greatly amplified uncertainty and downside risks around the outlook."
Kuwait's fiscal financing needs, excluding investment income and discounting compulsory transfers to the country's Future Generations Fund (FGF), remained large at 7.7% of GDP in the fiscal year 2018-2019. Kuwait's fiscal year starts on April 1.
"The challenge to reduce dependence on oil and boost savings has become more urgent ... Kuwait has large financial buffers and low debt, but the window of opportunity to tackle its challenges from the position of strength is narrowing," the IMF said, citing subdued forecasts for oil revenues. Kuwait has lagged behind other Gulf states in introducing reforms aimed at diversifying its economy after oil prices dropped in 2014/2015.
Every year, the country deposits 10% of total revenue into the its sovereign wealth fund, FGF. "At current policies, the overall fiscal balance would turn into a growing deficit, which, after mandatory savings in the FGF, would give rise to large financing needs over the medium term," the IMF said.

Copyright Reuters, 2020

Comments

Comments are closed.