PCB orders to stop paying dollar-denominated salaries in SOEs

Sep 3, 2024, 1:51 PM

The Privatization and Corporatization Board (PCB) has ordered state-owned enterprises earning revenue in dollars to stop paying dollar-denominated salaries to their employees.

The board issued a circular today ordering government companies and their subsidiaries to reduce costs. The circular, which mentioned several measures, ordered companies to cut expenses on travel, employees as well as general costs.

The only SOE that pays employees in dollars is the Maldives Airports Company (MACL). The government has now decided to bring the Regional Airports Company Limited (RACL) under the company.

Prior to the decision, MACL had a total of 4,264 employees. Two-thirds of the employees' salaries and allowances have been paid in dollars so far.

The PCB's order comes amid a severe shortage of foreign currency in the country. The national bank, Bank of Maldives (BML), recently decided to cut off dollar support to Rufiyaa accounts.

However, the decision was later reversed after consultations with the government and the central bank, Maldives Monetary Authority (MMA). The MMA's usable dollar reserves have also fallen to a record low.

Dollar Shortage Privatization and Corporatization Board MACL State own enterprises

Comments

PCB refuses to release financial statements of SOE Directors

Mar 26

Saeed continues to blame previous govt for high dollar rate

Mar 25

Economic Minister cannot explain why the dollar rate could not be lowered as promised

Mar 3

BML cardholders complain about restrictions on e-commerce websites

Feb 22

Latest News

MoU with India to build fitness centres in three islands

The Maldives and India signed an agreement to establish fitness and recreation centres on three islands using Indian grant assistance. Part of the High Impact Community Development Projects, the initiative aims to promote healthy lifestyles and strengthen community ties for residents of all ages.

Pork and alcohol will not be allowed in Rasmale': Muizzu

President Muizzu announced that the Rasmalé development will strictly prohibit alcohol and pork, with these bans to be legally codified. He emphasized that the project aims to attract a Muslim clientele, including Maldivians and foreigners. The 500-hectare site is being sold to a UAE developer under a 99-year lease agreement.

Thalassemia patients continue to face medication shortages

Thalassemia patients in the Maldives are facing a critical six-month shortage of essential medications, forcing many to interrupt vital treatments. The scarcity has worsened under the new state-owned State Pharma, which provides only limited supplies. This crisis also affects those with cancer and mental health conditions nationwide.

Tourist arrivals expected to fall short of previous record

Maldives Finance Minister Hassan Zareer announced that tourist arrivals this year are expected to fall short of previous records and targets. The government revised its year-end estimate to 2.17 million visitors, citing geopolitical tensions as a factor. This decline marks the end of a five-year growth trend for the nation's tourism sector.

Bangladeshi national sentenced to 18 years for knife attack

Jahangir Mia, a Bangladeshi national, was sentenced to 18 years in prison and fined seven million Rufiyaa for a knife attack on a Nepalese cashier in Hulhumalé. The victim survived a neck injury, and the court deducted Mia's time already served from his initial 20-year sentence. He was apprehended within 24 hours of the assault.

MVR 59.7 billion budget proposed for 2027

The Maldives government proposed a MVR 59.7 billion budget for 2027, focusing on increased development spending despite a lower total figure than 2024. While revenue is expected to rise, a MVR 9.4 billion deficit is projected due to higher expenditures. The state plans to secure MVR 18.9 billion in financing to manage debt and costs.

Italy awards highest civilian honour to Mahudhee

Italy is posthumously awarding Staff Sergeant Mohamed Mahudhee the Gold Medal for Civil Valour, its highest civilian honor, for his bravery in a rescue mission for Italian tourists. A fund has also been launched to support his family following his tragic death during the operation.

Get the latest news delivered straight to your inbox