Muscat: The Sultanate welcomed the conclusion statement issued by the International Monetary Fund (IMF) following its recent staffing mission to Oman.

The virtual mission was part of the 2021 IMF’s Article 4 consultation with the Sultanate.

As part of the engagement, the IMF delegation held a series of discussions with various authorities in the Sultan, including the Ministry of Finance, the Ministry of Economy, the Central Bank of Oman, several other government and private organizations, and members of the public. society.

During the 15-day mission, the delegation discussed recent macroeconomic developments, economic outlook, and several other related topics. We also discussed Sultan’s response to the COVID-19 pandemic and recovery phase strategies.

The delegation also discussed Sultanate’s fiscal policy, priorities, and implementation of the Medium-Term Fiscal Plan (2020-2024). Discussions included deliberations on fiscal adjustment measures, financial and banking developments, and various other structural reform programs initiated by the Sultanate.

Despite the uncertainties surrounding the global outlook due to the new COVID-19 variant and its impact on Oman, the IMF mission is to immunize 70% of the steps taken by the Sultan to contain the pandemic. Admired the efforts to accelerate the vaccination process in Oman. We support the most affected economic sectors of the pandemic, including population growth, strengthening a healthy business environment, and launching an “economic stimulus program”.

The IMF’s mission is to hope that the Omani economy will gradually recover from the effects of the pandemic and achieve decent growth in the medium term. The statement further predicts that Sultanate’s GDP will grow by about 2.5% in 2021 with an average growth rate of 3% in the medium term. Public debt is projected to decline in the medium term, but revenue and expenditure efficiencies are expected to rise.

In the medium term, the current account deficit is expected to decrease to 0.6% of GDP due to Sultanate’s fiscal consolidation measures and the expansion of the trade balance surplus.

The IMF’s mission was recently announced by the Sultan’s Fiscal and Financial Response and Medium-Term Fiscal Plan (MTFP) in 2021 to support various measures taken to address its financial weaknesses and economic recovery. He showed that he was predicting the balance with the initiative.

The mission also said that the initiative announced by the Sultanate to improve the performance of companies in the government sector is moving in the right direction. They believed that these measures would not only strengthen the competitive environment for these companies, but also contribute to increasing the efficiency of public resource utilization.

In addition, the IMF’s mission welcomed the efforts made by the Debt Management Unit to coordinate borrowing and manage associated financial risks. In this regard, the IMF emphasized that the adopted medium-term public debt strategy will improve the government’s borrowing program and enable forecasting of funding requirements.

Regarding the government’s proposal to make more and more use of renewable energy sources and ensure their optimal use, the mission is that this move will not only create more employment opportunities, but also attract domestic and foreign investment. He said it would have a positive impact on the economy.

Meanwhile, the IMF’s mission welcomed government plans to strengthen the efficiency and governance of government enterprises in order to improve competition and use public resources more efficiently. The procedure for creating a governance code for government-affiliated companies strengthens corporate governance, facilitates initial public offerings for government-affiliated companies, and provides the necessary transparency.

The mission called on the Sultanate to strengthen its regulatory framework and continue to implement structural reforms in order to move towards stronger growth. In addition to implementing policies aimed at increasing productivity, increasing labor market flexibility, promoting investment and strengthening the business environment. Such measures will strengthen the competitiveness and capacity of the private sector to promote growth in the non-oil sector.

The Sultanate confirms its commitment to the implementation of MTFP (2020-2024) and other structural reforms initiated. With these measures, the Sultanate strives to embark on a path of inclusive and sustainable growth.