What is the Yemeni government's plan for economic recovery? It includes 6 goals over two years

Prime Minister Ahmed Awad bin Mubarak revealed the government’s plan for 2025-2026 to achieve economic recovery and medium-term goals, and the government’s future vision to achieve stability, and identified five priority paths for reforms.

This came during his speech on Monday - at the international ministerial meeting on Yemen in New York, which included 35 countries - where he reviewed the government's plan, which includes six basic goals, and specified that his policy is based on five priority tracks.

Ben Mubarak pointed out - according to the text of his speech published by the "Saba" agency - that the plan aims to confront economic challenges, with unified efforts from the political components, noting that it is short-term for the years 2025-2026 to achieve economic recovery, and he stated it as follows: -

1. Enhancing financial sustainability and focusing on increasing government revenues, rationalizing spending, and reducing public debt, in order to address the large financial deficit resulting from the war.
2. Stabilizing the banking system by working to stabilize the currency and prevent its deterioration, and improving banking performance, in order to confront the economic challenges resulting from the war.
3. Developing the economy by focusing on developing vital sectors such as agriculture, industry, communications, oil and energy, and attracting investments, in order to diversify sources of income and create job opportunities.
4. Reducing inflation, controlling prices, encouraging local production, and reducing dependence on imports, in order to improve the standard of living of citizens.
5. Strengthening governance and institutional reform, focusing on combating corruption, improving the efficiency of government institutions, and building employee capacities, in order to ensure transparency and effectiveness of government performance.
6. Partnering with the private sector and empowering women by enhancing the role of the private sector in the economy, and empowering women economically and socially, in order to promote comprehensive and sustainable development.

5 priority tracks

“There are five tracks as main priorities for a possible short-term policy that aims to carry out necessary reforms to strengthen government institutions and improve the performance and effectiveness of the government apparatus, to implement policies and achieve targets, at the central and local levels,” Ben Mubarak said.

He reviewed the tracks as follows: First, achieving peace, security and stability and preserving the legal status of the state. Second, combating corruption and enhancing accountability and transparency. Third, financial and administrative reform.

Bin Mubarak pointed out that the fourth track is the development of economic resources. The fifth track is the optimal use of foreign aid and grants. He said, "The Yemeni government is fully committed to implementing its plan and vision to achieve stability and economic recovery at the central and local levels."

He explained that there is a need for a more balanced approach across all areas of humanitarian, development and peace work. “We seek to shift towards supporting sustainable development, particularly by strengthening state institutions and ensuring the central role of government as the primary actor in development cooperation,” he said.

Government Reform Program

While the Prime Minister called on international partners to commit to providing political, financial and technical support for the main priority programmes within the government’s plan, he indicated that his government has a clear programme for this.

“These programmes are crucial to unleashing further reforms and growth opportunities, including public administration reforms and strengthening state institutions at the central and local levels,” Ben Mbarek said.

The five programs were reviewed as follows:

• Public administration reform

Ben Mubarak said, "The government has a clear and specific program and an accurate description of the administrative problems and ways to solve them. At the forefront of these is reforming the retirement system, unifying retirement funds, and transforming them into an investment fund that has the independence to determine the scope of its investment activity to achieve social protection for a broad segment of our people."

He added, "This area is considered the cornerstone of institutional reforms and a necessary entry point for achieving a series of other reforms. The Yemeni government calls on its partners to support the reforms specified in its plan."

• Currency stability and financial management

Ben Mubarak stressed that "the government is committed to continuing its reforms in public finance management with the aim of reducing the budget deficit by increasing public revenues, controlling spending, reducing the burden of public debt, using all available tools to achieve stability in the exchange rate, improving liquidity management, and building sufficient reserves."

He said: “The Saudi grant for public finance since August 2023 has played an effective role in enabling the Yemeni government to continue fulfilling its basic obligations towards citizens.”

He added, "We call on our regional and international partners to increase their technical and financial support in the coming period to support the priority macroeconomic stability programmes in the Yemeni government's plan for economic recovery, and to enable the government to resume oil exports."

• Electricity sector

“Improving the electricity infrastructure reduces production costs, which helps contain price inflation and increases the competitiveness of national products,” Ben Mubarak said.

During his speech, he called on international partners to “provide technical and financial support for emergency maintenance projects and basic infrastructure outlined in its plan, expand the scope of renewable energy projects through partnerships with the private sector and foreign direct investment, and develop and implement a comprehensive roadmap for reforming the electricity sector.”

He explained that "the electricity sector is a troubling problem for the government, and the government aims in its short-term plan to improve the capabilities of this sector, raise the efficiency and productivity of government power plants, and increase the generation of renewable energy."

• Women and Peace

The Government of Yemen is committed to meaningfully engaging women in decision-making and peace processes while addressing barriers to security, economic empowerment, access to basic services, and strengthening institutional capacities to implement the women, peace and security agenda.

The Yemeni government calls on its international partners to provide financial and technical support to develop and implement a comprehensive national strategy to enhance Yemeni women’s participation and leadership in peacebuilding, governance and sustainable development.

• Partnership with the private sector

“The private sector has played a crucial role in supporting livelihoods and economic sustainability since the start of the coup, and is a key partner in addressing the challenges facing Yemen and stimulating economic recovery,” said Bin Mubarak.

“The Yemeni private sector contributes to bringing much-needed investment, efficiency and innovation, improving productivity, creating jobs and reducing unemployment and poverty,” he added.

The Yemeni government is currently developing a strategy for partnership with the private sector, and calls for the support of its international partners in activating the strategy and implementing projects in selected sectors.”

• Development of productive sectors

“Developing productive sectors such as agriculture, fisheries and industry - in light of the many challenges facing Yemen - is a beacon of hope for promoting sustainable growth and improving the livelihoods of millions of Yemenis,” Bin Mubarak explained.

“These sectors have the potential to stimulate the economy, create jobs and enhance food security, thus contributing to long-term stability and prosperity,” he said.

He added, "The Yemeni government seeks to obtain support from international partners to implement the national strategy for agriculture and fisheries and to finance and reactivate the Small Projects Development Fund with more facilitating mechanisms to ensure the success and development of small projects."

• Security stability

The Prime Minister said, "Establishing security is essential to achieving stability, enhancing the attractive environment for private sector investments, and enabling development projects."

He called for providing financial and technical support to enhance the presence and performance of the police and security forces in all directorates and improve access to justice and protection services, and effective participation in maritime security in Yemen by supporting the Yemeni Coast Guard.

"Yemen needs help in combating arms and drug smuggling, human trafficking and illegal immigration. There is also an urgent need to expand the scope of programs to remove landmines planted by the Houthi militia and support mine victims," Bin Mubarak said.