IMF welcomes Saudi reforms

The International Monetary Fund is applauding Saudi Arabia’s sweeping reform plan calling it “an appropriately bold and far-reaching transformation”.

The IMF also said the Saudis are reducing spending at the right speed to cope with a huge state budget deficit brought about by low oil prices.

The plan includes many measures the IMF has been urging Riyadh to adopt for a long time.

They are due to reduce the dependence on oil exports over the next 15 years, cut subsidies, raise taxes, sell state assets, make the government more efficient and increase private sector investment.

“The supporting policies that will be announced in the coming months are expected to set out how these goals will be achieved,” IMF official Tim Callen said after leading a team to Saudi Arabia this month for annual consultations with the Fund.

“To ensure their success, the reforms will need to be properly prioritised and sequenced, and the appropriate pace of implementation carefully assessed.”