Managing Director of Fahi Dhiriulhun Corporation (FDC), Hamdhan Shakeel, has stated that the Government has repaid loans amounting to USD 1 billion without imposing any additional tax burden on the public.

Hamdhan made the remarks in response to comments by former President Mohamed Nasheed, who recently described State debt as the greatest challenge facing the Maldives under the current constitutional framework. Nasheed also suggested that the Maldivian Democratic Party (MDP) was the only political force with the vision and capability to address the issue.

Speaking during a campaign visit to Kaafu Maafushi as part of the MDP chairperson election campaign, Nasheed said the country's debt had grown beyond its productive capacity. He further alleged that President Dr Mohamed Muizzu's Administration was not prioritising debt repayment and was instead focused on infrastructure development projects.

Responding to the criticism, Hamdhan highlighted the debt and tax policies implemented during previous MDP administrations. He said state debt stood at around 55 per cent of GDP when the MDP first assumed office, but later rose to more than 97 per cent of GDP.

He also noted that the Goods and Services Tax (GST), introduced at a rate of 3.5 per cent in 2011, was subsequently increased to 6 per cent. According to Hamdhan, the MDP's second administration added a further MVR 77 billion to the national debt while raising GST to 8 per cent.

In contrast, Hamdhan said the current Administration has avoided placing additional tax burdens on citizens while continuing to meet legacy debt obligations inherited from previous governments.

He stated that, within the past six months alone, the Government had repaid USD 1 billion in loans taken by previous administrations, without introducing new taxes or increasing existing tax rates.

Hamdhan also said that while political narratives may seek to influence public opinion, many Maldivians continue to remember the economic hardships experienced during previous administrations.