AMMAN — Prime Minister
Bisher Khasawneh said that
despite major economic challenges, Jordan’s inflation rate remained within the
4-percent range, far below that of Europe or the US, for instance, according to
the Jordan News Agency, Petra.
اضافة اعلان
In a wide ranging interview with Jordan Television’s “60
Minutes” talk show, the prime minister said the fact the Kingdom managed to
keep inflation under manageable thresholds, similar to those seen in rich
countries, “is a source of pride”.
“We now have a comprehensive reform and modernization
project for the Jordanian state, which aims to improve many dynamics and the
quality of life. There are signs that the Jordanian economy began to recover,
such as a 43 percent increase in exports over the previous year,” Khasawneh
said.
The tourism sector’s revenue “exceeded expectations and beat
the target of JD2.9 billion”, he said, adding: “We have surpassed this target
and are on the verge of achieving the figure recorded in the baseline year,
which we consider to be 2019.”
Khasawneh noted that foreign capital is pouring into the
Kingdom, citing major Emirati projects in
Aqaba and a hospital-medical
university project in collaboration with the Saudi Public Investment Fund
Company.
The prime minister said that an Arab sovereign fund is
seriously considering the construction of a railway connecting Aqaba and the
Madouneh region, to the east of Amman, and that the government is currently
awaiting a response from the fund before deciding whether to move forward with
the project or offer it as a public investment opportunity.
Regardingthe
International Monetary Fund (IMF) fifth review
of the national economy’s performance, the prime minister said “it was not
easy, but it succeeded”, emphasizing that the Kingdom’s IMF-sponsored reform
program is built on solid foundations and clear-cut targets aimed at curbing
tax avoidance and evasion, and maximizing public revenues.
He added that the program’s primary objective is to back
Jordan’s effort to carry out structural reforms that the Kingdom sees as
essential to achieving self-sufficiency.
According to the prime minister, the rising costs of staple
foods in the wake of the Ukraine war and the Jordanian government’s plan to
keep a strategic stock of wheat for more than a year and a half, and barley for
more than 10 months, posed the greatest challenge in the country’s fifth IMF
review.
However, as the prime minister pointed out, the government
made a strategic decision last April to keep buying wheat and barley to
maintain the strategic stock, despite the fact that doing so resulted in a
higher bill due to the $517 price tag attached to a ton of wheat. He said
additional purchases amounted to JD500 million.
After the fifth review was completed, Jordan’s credit rating
was set at “B1”, with a future outlook that shifted from “stable” to
“positive”, according to the prime minister.
These high ratings, he added, are evidence that Jordan’s
economy is being managed with care and prudence, and that reforms are being
taken seriously to safeguard the country’s citizens and future generations from
the greater dangers that would result from adopting “populist” policies.
Khasawneh said the national currency is strong and stable,
and that the exchange rate of the dinar has never been in doubt because of the
sound financial policies implemented by the
Ministry of Finance and the Central
Bank of Jordan.
Regarding a proposed new city project, the prime minister
said that it was initiated in 2017, under the government of former prime
minister Hani Mulki, but had since fallen off the priority list due to multiple
reasons, including the COVID-19 pandemic.
However, the project is now back on the table, and a
consulting firm submitted preliminary feasibility studies to the cabinet a few
weeks ago, he said, adding that it would most likely be launched in 2025, with
the first phase completed by 2033 and the second by 2050, accommodating 1
million people.
Khasawneh emphasized that “this ambitious project” seeks to
establish a city within the boundaries of the
Amman Governorate, but will be
neither a new nor an alternative capital. It will be approximately 40km from
the center of Amman, 27km from Queen Alia International Airport and 32
kilometers from Zarqa, he noted.
While acknowledging that the tax burden in the Kingdom is
slightly high, the prime minister said “the current state of public finances
does not allow for any (tax) reviews”. He indicated that his government has no
plans to increase current or introduce new taxes.
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