Economic reform program extended three years

The Yemeni cabinet approved a proposal to extend the term of the current economic reform plan for 3 more years in order to reduce the country's enormous budget deficit and the balance of payment.

The extension, which is part of a program recommended by the World Bank (WB) and the International Monetary Fund (IMF), aims to end the government' s subsidization of the prices of public services, wheat, flour and fuel by the year 2000.

The plan mentioned that an agreement was reached with the WB to privatize some sectors, including water, electricity, commercial banks, and state-owned industries. The economic reform program in Yemen started in 1995.