If the conflict persists for two months, tourism could decline by 70%; the government lacks a strategic plan to sustain economy: Shamheed
Member of Parliament Dr. Ahmed Shamheed has stated that while the Maldivian economy remains in a precarious state, the government appears to lack a comprehensive strategy to manage debt obligations and strengthen national reserves.
Dr. Ahmed Shamheed, Member of Parliament for the South Hulhumale' constituency. | RaajjeMV | RaajjeMV
Dr. Ahmed Shamheed, the Member of Parliament for the South Hulhumale' constituency, has warned that tourist arrivals could plunge by 70% if the conflict initiated by the United States and Israel against Iran persists for two months. He further criticized the government, stating that there is a lack of visible seriousness in addressing this potential crisis.
Shamheed made these remarks while speaking on Raajje TV's "Fala Surukhee" program.
Shamheed stated that the Maldives is currently in a precarious situation, asserting that the government lacks a coherent plan to stabilize the economy. He further noted that claiming the economy would improve simply by winning the council elections is a deception. Additionally, he argued that the government's assertion that bringing in more flights would fix the economy is illogical. Shamheed also emphasized that it is unacceptable to utilize funds intended for the country's food security to settle outstanding loan repayments.
While global conflicts rage, their true gravity remains unaddressed. This is the current modus operandi: keeping the public in a state of illusion. Meanwhile, companies are being strung along with vague assurances that the payments owed to them will be settled today or tomorrow.
Shamheed stated that the country is currently in a precarious situation, asserting that the government is responsible for the present state of affairs. He noted that while over $800 million entered the Maldives last year, the manner in which those funds were spent remains unclear. Furthermore, Shamheed emphasized that the government must urgently find solutions regarding the repayment of national debt and the decline in usable reserves.
Shamheed stated that the current administration has failed to provide a clear explanation regarding the status of the Sovereign Development Fund. He further noted that the figures cited by President Dr. Mohamed Muizzu are inconsistent with official statistics.
