In a recent panel discussion hosted by the Maldives Democratic President (MDP), former Foreign Minister Abdullah Shahid criticized the current administration’s handling of the country’s economic issues. Shahid, along with other key figures from the previous government, such as MDP Chairman and former Economic Minister Fayyaz Ismail and former Finance Minister Ibrahim Ameer, addressed concerns over the economy crisis.
Shahid’s remarks were directed at a recent statement by the current Foreign Minister, Moosa Zameer, who had visited China. During a segment on PSM’s ‘Raajje Miadhu’ program, Zameer relayed that the Chinese Prime Minister had characterized the economic challenges facing the Maldives as temporary. However, Shahid contended that this temporary crisis is actually a result of mismanagement by the current administration.
“Even the Chinese president recognizes that the Maldivian economy was stable at the end of the previous government’s tenure,” Shahid said. “The difficulties we’re experiencing now are due to the mismanagement of the current government.”
The panel discussion highlighted several critical points regarding the economic downturn. Former Finance Minister Ibrahim Ameer criticized the government’s financial handling, attributing the economic slump to what he described as the administration’s incompetence. Ameer pointed out that in the last eight months, the country’s economic situation has deteriorated due to increased recurrent expenses and a dramatic rise in political appointees.
Ameer noted that while the previous administration maintained around 700 political posts, the current government has expanded this number to over 2,000. He also highlighted the bankruptcy of small and medium enterprises as a consequence of the current policies. According to Ameer, the government’s increased spending and inefficient allocation of resources have exacerbated the economic downturn.
The former finance minister also criticized the revised economic growth forecast for 2024. Initially estimated at a 5.4% growth rate, the forecast has now been downgraded to 4.9%. “This revision reflects the negative impact of the current administration’s policies and their inability to effectively manage financial challenges.
