PM OUTLINES NEED TO ATTRACT FOREIGN INVESTMENT

‘Correcting the course: A product-based economy and sustainable wellbeing’

KUWAIT CITY, July 17, (Agencies): The National Assembly is set to hold Tuesday a special session to look into government work plan for the 17th legislative term (2023- 2027). The work plan, titled ‘Correcting the course: product-based economy and sustainable wellbeing’ consists of five axes, each diverging into various programs ad projects reflecting government objectives of development and addressing citizens’ priorities. The five axes aim to improve living conditions, boost government efficiency and intensify productivity.

The axes split into public finance stability, economic agenda, creation of job opportunities and skill-set development, sustainable prosperity and strong human capital, and a more product-based government. Article (98) of the Kuwaiti constitution stipulates that each ministry submits to National Assembly action plan for the assembly to reply with notes. His Highness the Prime Minister Sheikh Ahmad Nawaf Al-Ahmad Al-Sabah highlighted in speech on occasion of work plan submission, the governments keenness on cooperation with the legislative branch all for the good and benefit of the people. National Assembly Speaker Ahmad Al-Sadoun was handed Sunday the government work plan by Deputy PM and State Minister for National Assembly Affairs and Cabinet Affairs Essa Al-Kandari.

His Highness the Prime Minister, Sheikh Ahmad Nawaf Al- Ahmad Al-Sabah, has spoken of the need for the private sector to fulfill its role under the effective control of the state, towards sustainable development, and added the state must create an atmosphere of confidence and reassurance to encourage local investment and attract foreign capital, reports Al-Rai daily.

Salaries Speaking at the inauguration of the Government Action Program, the Prime Minister said. the government has not lost sight of the social and basic needs of life, saying the government’s work program includes setting up an integrated framework for reviewing public sector salaries by updating the study of the strategic alternative, in a manner commensurate with merit and productivity, while stimulating the trend towards working in the private sector to rationalize the cost on the state’s public finances. He went on to say, the program also includes 30 legislative requirements for its implementation, in addition to that it includes 13 projects to raise Kuwait’s educational rating, 9 to raise the health rating, and 15 projects to improve the quality of life of citizens and enhance their wellbeing, in addition to 36 projects valid for private sector participation and public subscriptions.

This is in addition to the launch of a standard central platform for government procurement and linking all government agencies with it to ensure the best prices and benefit from the advantage of collective procurement, and the approval of ceilings for public expenditures for the mediumterm within budgets that are according to prudent discretionary frameworks; preparing a general framework for restructuring the subsidy model towards achieving more justice, transparency and efficiency, while directing it to the needy groups, issuing a general framework to address the foundations of the pension insurance system in all its organizational fields, aiming to eliminate the actuarial deficit and improve the financial performance of the institution to ensure its sustainability and independence from the state’s public finances.

Pricing
He added, it also includes issuing a general framework for periodically reviewing and re-pricing the state’s real estate taking into account the foundations of justice and productivity rates, launching a pricing mechanism for public services, fees and irregularities (which is developed and reviewed periodically), and issuing a general framework for corporate tax, including legislative requirements and implementation mechanisms, in accordance with best international practices and the approval of the public debt law and the framework regulating it, while linking it to projects of added economic value.

The program, he said, includes the opening of the new Kuwait International Airport building T2 and its operation through the international airports management, the launch of the joint Gulf rail link project and the preparation of railway stations in Nuwaiseeb and Shaddadiya, as well as the opening of Kuwait City for air cargo in partnership with an international operator.

It also includes the inauguration of the railway line between the State of Kuwait and the Kingdom of Saudi Arabia, with the development of tourism and logistical infrastructure in the surrounding region, the completion of the development, construction and operation of the Mubarak Al-Kabeer Port project through global partnerships, and the increase of the capacity for air traffic from 240,000 to 650,000 landing and take-off flights gradually through the development of 3 runways at the Kuwait International Airport, the Premier added. With regard to the energy sector, the program includes raising the production of free gas (excluding the Divided Zone) from 521 million cubic feet per day to 930 million cubic feet per day, and preparing the integrated infrastructure for the offshore Durra field.

Speaking of the economic projects, the Prime Minister said, the program includes the inauguration of the Northern Economic Zone and the Abdali Special Economic Zone, and the allocation of the Northern Shuaiba plant project for generating electric power and water distillation.

The program includes the establishment of the Kuwait Post Company and a company to manage fixed communications networks and optical fibers, the launch of the comprehensive national project for digital transformation, the issuance of the national strategy for privatization, and the development of a general framework aimed at qualifying 6 projects for partnership between the public and private sectors on an annual basis, as well as the establishment of a public authority to manage and invest state real estate, in addition to To launch a national framework for Kuwaitization and launch a comprehensive framework for the restructuring of public government agencies.

The program also includes the issuance of the real estate financing law, the distribution of 15,094 residential plots in “South Saad Al-Abdullah” and “South Khairawan”, the preparation of 1036 plots of land for distribution to priority sectors in Al-Shaddadiya Industrial City, as well as the launch of the Sabhan project with 96 industrial plots for the localization of food industries, in addition to looking into the activity of small projects in Mina Abdullah