Bahrain’s Prime Minister has ordered officials to restructure the government sector and slash public spending in a bid to reduce debt, Gulf Daily News has reported.
The changes could include cuts to subsidies, which accounted for BD1.535 billion ($3.9bn) last year, the newspaper said. The International Monetary Fund in June urged the Gulf state to reduce public debt, particularly by re-assessing subsidies.
Trade laws also could be overhauled to help attract foreign investments and boost state revenue.
Bahrain’s public debt reached 44 percent of gross domestic product last year, according to government figures.
In declaring that the debt must be reined in, Prime Minister Prince Khalifa bin Salman Al Khalifa called for initiatives to create new jobs.
He said the country needed to modernise its commercial legislation to revitalise economic development and highlighted the need to fast-track settlement of investment disputes through arbitration.
The Economic Development Board is presently reviewing draft legislation designed to encourage and protect market competition.
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