Minister of Economic Development and Trade Mohamed Saeed has stated that the ruling People’s National Congress (PNC) has used its supermajority in the People’s Majlis responsibly and has not taken any action that would cause harm to the Maldivian economy.

Minister Saeed made the remarks in response to a question from a journalist during a press conference held at the President’s Office on Tuesday.

Referring to the previous Maldivian Democratic Party (MDP) administration, Minister Saeed stated that when the party held a supermajority in Parliament, the government led by former President Ibrahim Mohamed Solih suspended three provisions of the Fiscal Responsibility Act. He said this enabled monetary expansion and increased borrowing.

Minister Saeed said that at the time, in his capacity as a member of the Parliament’s Economic Affairs Committee, he sought a meeting with the Governor of the Maldives Monetary Authority to discuss potential economic risks linked to monetary expansion. He added that the meeting did not take place and that letters sent on the matter did not receive a response.

Addressing claims that monetary expansion was undertaken due to financial pressures caused by the Covid-19 pandemic, Minister Saeed said the Government had received foreign assistance exceeding the amount spent on pandemic-related expenses. He stated that funds were also used in connection with the Komandoo and Guraidhoo parliamentary by-elections.

Minister Saeed said the current Government’s decision to halt monetary expansion contributed to efforts to stabilise the Maldivian rufiyaa against the US dollar. He also referred to President Dr Mohamed Muizzu’s recent assurance that there are no concerns regarding the payment of sukuk due in April, stating that the supermajority granted to the PNC has supported fiscal stability.

He further highlighted several initiatives undertaken during the current Administration, including the introduction of air ambulance services, the addition of wide-body aircraft to the national airline Maldivian, the generational tobacco ban and the prohibition of vaping. Minister Saeed also noted the expansion of Raajje Transport Link (RTL) ferry services to atolls that previously lacked such services, as well as ongoing airport development projects.

Minister Saeed said foreign reserves have surpassed USD 1 billion, while funds in the Sovereign Development Fund (SDF), which previously stood at around USD 2 million, have increased to approximately USD 300 million.