{"id":258335,"date":"2026-08-26T22:58:59","date_gmt":"2026-08-26T20:58:59","guid":{"rendered":"https:\/\/sada.ly\/en\/?p=258335"},"modified":"2026-08-27T23:00:36","modified_gmt":"2026-08-27T21:00:36","slug":"al-bouri-reactivating-the-price-stabilization-fund-is-not-the-solution-libya-needs-to-support-citizens-not-goods","status":"publish","type":"post","link":"https:\/\/sada.ly\/en\/al-bouri-reactivating-the-price-stabilization-fund-is-not-the-solution-libya-needs-to-support-citizens-not-goods\/","title":{"rendered":"Al-Bouri: “Reactivating the Price Stabilization Fund Is Not the Solution.. Libya Needs to Support Citizens, Not Goods”"},"content":{"rendered":"\n

By:<\/strong> Banking expert Noman Al-Bouri<\/p>\n\n\n\n

I am surprised by those calling for the reactivation of the Price Stabilization Fund, as though Libya\u2019s problem were simply that this institution had stopped operating. The reality is that the price stabilization system has existed for decades and failed to address the root of the problem. Instead, it contributed to significant economic distortions.<\/p>\n\n\n\n

If we genuinely want to learn from the past, we should ask a simple question:<\/p>\n\n\n\n

What has the Price Stabilization Fund achieved over the past decades?<\/strong><\/p>\n\n\n\n

Did it succeed in creating a stable market?
Did it prevent prices from rising?
Did subsidies reach citizens fairly?
Did it prevent smuggling and speculation?
And was the cost of subsidies to the state proportionate to the results achieved?<\/p>\n\n\n\n

I believe answering these questions should come before any call to reactivate the fund.<\/p>\n\n\n\n

The fundamental problem is not the absence of a price stabilization fund, but rather the economic model itself.<\/p>\n\n\n\n

When the state intervenes to set the prices of goods and sell them below their actual cost, it does not eliminate the cost; it simply transfers it to the public treasury.<\/p>\n\n\n\n

In an economy suffering from weak oversight, multiple exchange rates, smuggling, and a parallel economy, untargeted subsidies create an ideal environment for leakage and allow those who are not entitled to benefit from them.<\/p>\n\n\n\n

The result is that the state spends billions, while citizens do not necessarily feel that this money has reached them.<\/p>\n\n\n\n

More importantly, subsidizing goods means that the rich and the poor receive the same subsidy.<\/p>\n\n\n\n

The state subsidizes fuel, benefiting both someone who owns one car and someone who owns several cars.<\/p>\n\n\n\n

It subsidizes certain goods, benefiting those in need as well as traders, speculators, and smugglers.<\/p>\n\n\n\n

This is not social justice.<\/strong><\/p>\n\n\n\n

Subsidies should go to people, not goods<\/strong>.<\/p>\n\n\n\n

If the state wants to protect citizens from rising prices, it would be better to gradually shift from price subsidies to income support, and from universal subsidies to targeted assistance.<\/p>\n\n\n\n

For example, a genuine national database of citizens could be established and linked to the banking and digital systems, allowing cash assistance to be transferred directly to eligible citizens rather than attempting to control market prices through government institutions.<\/p>\n\n\n\n

At the same time, the real causes of rising prices must be addressed:<\/p>\n\n\n\n