{"id":256625,"date":"2026-04-07T20:35:55","date_gmt":"2026-04-07T18:35:55","guid":{"rendered":"https:\/\/sada.ly\/en\/?p=256625"},"modified":"2026-04-07T20:35:55","modified_gmt":"2026-04-07T18:35:55","slug":"exclusive-economic-experts-committee-issues-key-recommendations-to-improve-libyas-economic-situation","status":"publish","type":"post","link":"https:\/\/sada.ly\/en\/exclusive-economic-experts-committee-issues-key-recommendations-to-improve-libyas-economic-situation\/","title":{"rendered":"Exclusive: Economic Experts Committee Issues Key Recommendations to Improve Libya\u2019s Economic Situation"},"content":{"rendered":"\n<p>A committee of economic experts formed by the Libyan Presidential Council has issued a comprehensive report assessing Libya\u2019s current economic and financial situation, highlighting deep structural imbalances and proposing urgent reform measures.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Current Economic Challenges<\/strong><\/h3>\n\n\n\n<p>The report reveals that Libya is facing a severe economic crisis that has negatively impacted a large segment of the population, with <strong>over 40% living below the poverty line<\/strong>. Key issues include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Declining sovereign revenues<\/strong>, particularly from oil, despite stable production and prices\u2014due to withheld revenues and exports outside legal frameworks.<\/li>\n\n\n\n<li>Weak non-oil revenues (less than 5% of total), including sharp declines in telecommunications income, customs duties, and tax collection.<\/li>\n\n\n\n<li><strong>No revenues from domestic fuel sales<\/strong> were transferred to the public treasury throughout 2025.<\/li>\n\n\n\n<li>Institutional fragmentation, weak governance, lack of oversight, and widespread corruption.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Rising Spending and Debt<\/strong><\/h3>\n\n\n\n<p>The report highlights a significant expansion in public spending, especially on wages, subsidies, and operational expenses. With reduced revenues, governments resorted to borrowing from the Central Bank of Libya, leading to:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Public debt exceeding <strong>300 billion LYD<\/strong> (over 180% of GDP by 2025).<\/li>\n\n\n\n<li>Money supply rising to nearly <strong>200 billion LYD<\/strong> without corresponding real economic growth.<\/li>\n\n\n\n<li>High inflation, pressure on the exchange rate, and declining purchasing power.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Risks if the Situation Persists<\/strong><\/h3>\n\n\n\n<p>If current trends continue, Libya may face:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Further inflation and erosion of citizens\u2019 purchasing power.<\/li>\n\n\n\n<li>Continued depreciation of the Libyan dinar (which has lost over 80% of its official value in five years).<\/li>\n\n\n\n<li>Growing fiscal deficits, poverty, and unemployment.<\/li>\n\n\n\n<li>Increased social and security instability.<\/li>\n\n\n\n<li>Greater vulnerability to oil price fluctuations.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Key Short-Term Recommendations<\/strong><\/h3>\n\n\n\n<p>The committee proposed urgent measures to restore stability, including:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Enforcing financial laws to ensure all sovereign revenues are transferred to state accounts and obligating the National Oil Corporation to fully remit oil and gas revenues transparently and on time.<\/li>\n\n\n\n<li>Setting a <strong>public spending cap at 80% of 2025 expenditure<\/strong>, pending agreement on a unified budget.<\/li>\n\n\n\n<li>Reducing unnecessary operational expenses and reorganizing development priorities.<\/li>\n\n\n\n<li><strong>Stopping deficit financing<\/strong> and setting a clear ceiling for public debt.<\/li>\n\n\n\n<li>Reforming fuel subsidies and combating fuel smuggling.<\/li>\n\n\n\n<li>Improving tax, customs, and revenue collection systems while addressing corruption.<\/li>\n\n\n\n<li>Avoiding reliance on exchange rate devaluation or taxes on foreign currency sales to fund deficits.<\/li>\n\n\n\n<li>Regulating imports, prioritizing essential goods, and strengthening customs oversight.<\/li>\n\n\n\n<li>Limiting foreign currency use within available resources and avoiding reserve depletion except when necessary.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Conclusion<\/strong><\/h3>\n\n\n\n<p>The committee stressed that implementing these urgent reforms, alongside strong political will, effective governance, and anti-corruption measures, is essential for achieving economic stability and enabling long-term structural reforms in Libya.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>A committee of economic experts formed by the Libyan Presidential Council has issued a comprehensive report assessing Libya\u2019s current economic and financial situation, highlighting deep structural imbalances and proposing urgent reform measures. Current Economic Challenges The report reveals that Libya is facing a severe economic crisis that has negatively impacted a large segment of the [&hellip;]<\/p>\n","protected":false},"author":13,"featured_media":256626,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[2],"tags":[636,613],"class_list":["post-256625","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-economy","tag-libya"],"acf":[],"_links":{"self":[{"href":"https:\/\/sada.ly\/en\/wp-json\/wp\/v2\/posts\/256625","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/sada.ly\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/sada.ly\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/sada.ly\/en\/wp-json\/wp\/v2\/users\/13"}],"replies":[{"embeddable":true,"href":"https:\/\/sada.ly\/en\/wp-json\/wp\/v2\/comments?post=256625"}],"version-history":[{"count":1,"href":"https:\/\/sada.ly\/en\/wp-json\/wp\/v2\/posts\/256625\/revisions"}],"predecessor-version":[{"id":256627,"href":"https:\/\/sada.ly\/en\/wp-json\/wp\/v2\/posts\/256625\/revisions\/256627"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/sada.ly\/en\/wp-json\/wp\/v2\/media\/256626"}],"wp:attachment":[{"href":"https:\/\/sada.ly\/en\/wp-json\/wp\/v2\/media?parent=256625"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/sada.ly\/en\/wp-json\/wp\/v2\/categories?post=256625"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/sada.ly\/en\/wp-json\/wp\/v2\/tags?post=256625"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}