AMMAN — Minister of State for Economic Affairs and Head of Government of Economic Team Muhannad Shehadeh stressed that the government has a realistic economic programme and a clear vision, and its decisions aim at achieving growth to be reflected on improving the quality of life and generating job opportunities, and sustainability based on the strategic approach of Economic Modernization Vision (EMV).

 

The meeting was attended by the Minister of Finance Abdul Hakim Shibli, and Minister of Government Communication and Government Spokesman Mohammad Momani, in addition to economic programmes' presenters, heads of economic departments and economic news editors, from various media outlets.

 

During the meeting, Shehadeh reiterates that economic measures and decisions, taken by the government since its formation of about 60 days, aim to stimulate economic growth and overcome the consequences of the political situation in the region and the world.

 

Shehadeh stressed that the government is also committed to overcoming all obstacles and bureaucratic complications, while balancing expenditures and money collection on one hand, and moving forward with major investment projects on the other hand, to reach the desired economic growth.

 

He pointed out that in order to reach that, it must be in line with the vision, which includes eight engines, 35 sectors and 360 economic measures related to its aspects and sectors.

 

He explained that achieving economic growth requires the government to facilitate indirect spending, reduce the trade balance deficit, attract investments and support the purchasing power of citizens, thus contributing to increasing the GDP, which currently amounts at JD36 billion.

 

He also pointed out that the government has already begun to facilitate spending through a number of measures and decisions it has taken related to customs, tax and princely funds, in order to provide indirect financial liquidity for citizens that can be injected into the local market to contribute to the revitalisation of economic activity.

 

He pointed out that the funds pending today with the customs and related customs revenues exceed JD300 million, stressing that the settlement of these issues will reflect on the money circulation in the economy.

 

Tourism

 

He explained that the government's decision regarding medical tourism, whether in terms of allowing nationalities to enter the Kingdom, or the opening of direct airlines, came with the aim of restoring momentum to this important service sector, calling on the private sector to exploit these facilities and work to attract expatriates for treatment purposes in the Kingdom.

 

Exemptions

 

He pointed out that the government's decision to exempt fees and fines on vehicles which their licenses have expired for more than a year amounting to more than 550,000 unlicensed vehicles, entailing JD332 million as fees.

 

Shehadeh also noted that the government's decision on the amended bylaw of exempting profits, of exports of goods and services, from income tax for the year 2024, came in line with the EMV to ensure the continued growth of the service sectors, especially the information technology sector, which represents one of the main drivers of the vision.

 

He stressed that the decision will also contribute to the revival of other service sectors, especially for engineers, lawyers, consultation, the information technology sector and others, and it is also part of the EMV to generate more job opportunities for Jordanians, explaining that the services sector constitutes 60 per cent of GDP.

 

He also praised the banking sector's step toward reducing interest by 4.99 per cent on housing loans for 3 consecutive years, after the government's decision, describing it as positive as it will stimulate other economic sectors.

 

Investments

 

He pointed to the major investment projects that will be implemented as part of the EMV, foremost of which is the "National Carrier", where the financial closure of the project during the next year will contribute to activate several economic sectors throughout the Kingdom and reflect on the development aspect.

 

He pointed out that the other project is the "Railway from Aqaba to Shidia and Ghor Al-Safi", which will contribute to reducing transport fees, raising the competitiveness and level of services and improving the performance of companies, in addition to being an integrated solution for the truck sector, expecting that the first quarter of next year will witness the signing of final agreements related to it.

 

Debt

 

He also addressed the issue of "indebtedness", stressing that the government is committed to manage the internal and external debt in "the best way", and there are many scenarios in this regard, including replacing part of the debt with soft loans and lower interest rates through the Kingdom's close and strong relationships with countries, in addition to the low interest rates in the world.

 

He stressed that His Majesty King Abdullah's recent meeting with Arab and foreign investors sends a strong message that investment in Jordan reflects high confidence in monetary policies, which are the backbone of investment and employers.

 

Budget

 

Finance Minister Abdul Hakim Shibli stressed that the budget is realistic, and the government is determined, despite the hard region circumstances, to reduce the deficit in the public budget as well as the public debt, in addition to securing budget allocations for the implementation of major projects, such as the national carrier and the railway.

 

He explained that the current budget has maintained all guarantees that concern citizens, especially with regard to subsidising bread, barley and gas cylinders.

 

Shibli added that the current budget increased the share of capital projects to JD1.469 billion.

 

He pointed out that the draft budget law estimated public revenues at about JD10233 million, of which JD9498 million are local revenues and JD734 million are external grants, indicating that the draft budget has set realistic estimates of revenues in a way that contributes to managing the development process efficiently.

 

Shibli explained that the budget draft included an increase in allocations for the National Aid Fund's (NAF) social protection network, and a 50 per cent increase in allocations for the University Student Support Fund, in addition to securing necessary allocations to support strategic food commodities, as well as indirect support for essential services and facilities in the fields of water, electricity, and health.

 

He pointed out that the government relied on a "Real Economic Growth Rate" of 2.5 per cent for the next year and a "Nominal Economic Growth Rate" of about 4.9 per cent during the formulation of the current budget, while maintaining moderate inflation rates, which would contribute to enhancing financial and monetary stability.

 

Regarding the "expenditure Items" in the general budget, Shibli indicated that the budget allocated at approximately JD11042 million, and capital expenditures at approximately JD1468 million, with an increase of 16.5 per cent compared to its re-estimated level for the current year 2024.