Libya announces new measures to liberalize the economy
Libya, Economics, 11/3/2004

Libya has announced that it will take a series of economic measures to lift subsidy from gasoline, electricity and supply commodities which cost at the meantime $ 5 billion annually.

According to the Libyan (prime minister) Shukri Ghanem, these new measures aim at "strengthening and liberalizing the economy" which has been greatly affected during the years of international, European, and American sanctions which were imposed on Libya as a result of accusing the Libyan leader Muammar al-Qathafi of supporting terrorism.

Ghanem explained on Monday that the first of these economic sanctions cover ending subsidy for basic supply commodities ( Sugar, Tea, oil, wheat and rice) at a cost of $ 2 billion.

But he added that ending subsidy will coincide with rising wages and reducing taxes and exempting bank loans from interests.

He added that the government will end subsidy for gasoline which costs it $ 2 billion annually ( 0.11 dinar for one liter ) after the salary of one Libyan citizen will be amended to be up to that of the citizens of other oil countries.

The Libyan official expressed his hope that Tripoli will be able to double its oil production to three million barrels daily in 2010 when Libyan oil reserves were estimated in October this year at 47 billion barrels.

As for the unemployment of which 270,000 Libyan suffer, Ghanem said that there are new laws under preparation aiming at ending services of 2 million foreign workers in Libya and replacing them by Libyans.

He added that these laws will make it obligatory for foreign companies to recruit Libyans in the jobs mainly recruited by foreigners.

Previous Stories:
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