News Desk
The government continues to absorb the immediate economic shocks from the Middle East unrest, and for now the effects have not spilled into the streets. Shops remain stocked, the bazaar is steady and there is no sign of public anxiety. Officials say the priority is to keep daily life stable while the state manages the pressure behind the scenes.
President Muizzu has formed ministerial committees to monitor the situation, with weekly briefings held to update the media on how the government is managing the impact. These briefings have focused on supply chains, fuel security and the broader economic outlook, signalling a coordinated effort to stay ahead of any disruption.
Against this backdrop, the Privatization and Corporatization Board has instructed state-owned companies to take sharper cost‑cutting measures. The new circular expands on an earlier directive issued in March last year, but the latest instructions are more extensive and reflect the government’s concern that the external shock could deepen.
Companies have been told to significantly reduce spending on salaries and allowances. Management is expected to ensure work is completed within official hours, with overtime allowed only for essential tasks. Promotions are to be halted and recruitment frozen for any post not critical to maintaining operations, even if the role exists in the approved organisational structure.
The circular also orders tighter control of payroll costs and warns companies against incurring any expenditure not directly required under their bylaws or articles of association. Boards have been asked to study the economic impact of the Middle East crisis and to take decisions with the financial burden on the public in mind.
Non-essential ceremonies are to be cancelled. Foreign travel is to be stopped except where absolutely necessary, with meetings to be attended online instead. Training programmes abroad are to be replaced with virtual participation. Staff are instructed to use ferries in areas where ferry services operate, and companies are encouraged to shift to renewable energy where possible.
Several government agencies have already begun adjusting their operations in response to the crisis, including reducing official working hours and suspending overtime.
The government’s move to tighten spending across state companies signals a recognition that the situation may evolve, and that early restraint is needed to keep the economy stable while shielding the public from immediate strain.
