Qasim warns country will go bankrupt without immediate austerity measures

Aug 21, 2024, 5:09 AM
MP Qasim. -- Photo: Parliament

MP Qasim. -- Photo: Parliament

The government must cut spending and take all necessary measures to get out of the financial crisis or else the country cannot be saved from bankruptcy, Maamigili MP Qasim Ibrahim has warned.

During the debate on the Urban Development Bill in Parliament yesterday, Qasim said the state's debt has neared MVR 130 billion and all necessary measures must be taken to get rid of the debt.

"The government must cut spending in all possible areas. The day has come when we need to tighten our belts for the next two years," said the Chairperson of the Parliament's Public Accounts Committee and the Chairman of Villa Group.

If the government does not cut spending, international students cannot get money and the country cannot obtain medicines, he said. He warned that things might worsen to the level that people would not be able to get dollars to travel overseas.

"We cannot get foreign exchange currency. When we face this situation, it will be much more worse," Qasim said.

The tourism magnate said everyone should work together to overcome the difficulties before reaching that situation.

He highlighted the role of the Parliament and said MPs must cooperate to overcome the crisis.

"We cannot be saved unless we work in the same spirit and determination," Qasim warned repeatedly.

Dollars are only available at the price sold by sellers in the black market and authorities were pretending to be unaware when government companies were forced to turn to the black market for dollars.

"We are destroying ourselves so, my request is honorable MPs, with thoughtfulness and sincerity, we must work together and the government should take the necessary action immediately. There is nothing to be achieved by postponing this," he added.

He also warned that the country cannot be saved by depending on others.

The state's financial situation has deteriorated and the usable dollar reserves have declined rapidly. The government has no money and development projects have been stopped. However, President Dr. Mohamed Muizzu has not taken any steps to cut spending by reducing political appointees.

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