Professor of Economics Ayoub Al-Farisi wrote a post titled Recommendations Toward Financial Reform and Sustainable Development, in which he stated:
To achieve sustainable growth and long-term stability in Libya, policymakers must prioritize development projects, diversify income sources away from oil, and reform wage policies to create a more balanced and resilient economy. Addressing the root causes of consumer-driven spending and political fragmentation is essential to unlocking the country’s full economic potential and ensuring a prosperous future for all Libyans, through the following measures:
- Rebalancing public spending by gradually increasing the share of investment expenditure to at least 20% of the budget, in line with regional best practices.
- Implementing wage policy reforms to curb the growth of public-sector salaries, including rationalizing hiring, linking wages to performance, and expanding opportunities in the private sector.
- Establishing transparent, merit-based mechanisms for resource allocation to reduce the impact of quota-based politics and ensure that financial decisions support national development priorities rather than narrow interests.
- Diversifying the economic base by directing public investment toward non-oil sectors such as renewable energy, agriculture, and technology, thereby reducing vulnerability to oil market fluctuations.
- Strengthening financial planning and oversight frameworks to improve accountability, efficiency, and adaptability in public financial management.
