KUWAIT CITY, July 28: The International Monetary Fund (IMF) has advised Kuwait to assess its expenditures because the national coffers might be depleted in 2017 if its current spending habit continues, reports Al-Rai daily.
The IMF also asked Kuwait to look for long-term solutions, such as the restructuring of taxes and fees for various services to increase its revenues.
Meanwhile, Director-General for the Middle East and Asia Mai Khamees stressed the need for the country to be cautious when it comes to its expenditures, adding that the IMF expects Kuwait to survive due to its budgetary surplus but this will not last long if it fails to eliminate unnecessary expenditures.  She said Kuwait must wean itself from total dependence on oil and it should look for alternative sources of income.
Moreover, Khamees disclosed the IMF believes the political instability in Kuwait does not help in creating an environment conducive for investments in the public sector.  Due to the unstable political conditions, the country continues to lag behind its neighbors when it comes to the implementation of vital development projects made worse by its inability to issue laws to support the private and investment sectors, she said.
Khamees asserted the main problem in Kuwait is the failure of the government and the Parliament to lay down an effective mechanism to develop the investment sector.  She added the IMF had noticed that Kuwait’s financial system is unique as it has a powerful banking sector, yet the conditions of most investment companies continues to deteriorate.  She is of the view that the absence of a legal and clear framework has negatively affected the investment companies and the confidence of investors.