The Minister for Fisheries and Ocean Resources, Ahmed Shiyam, has announced the implementation of a sustainable system aimed at ensuring timely payments to fishermen and improving the management of foreign exchange inflows through the Maldives Industrial Fisheries Company (MIFCO).

The initiative, which was a electoral promise by President Dr Mohamed Muizzu, guarantees payments to fishermen within 48 hours.

Funds have already been allocated to support the system, and the Government has introduced measures to ensure its long-term sustainability.

The impact of these changes is already evident. MIFCO has deposited USD 4.6 million into the banking system from fish exports since the introduction of the new payment system.

The company estimates that processing an average of 300 metric tonnes of fish daily throughout the year could generate USD 50 million in revenue.

The Government, in partnership with MIFCO, is working to achieve even higher targets. Efforts are underway to increase storage capacity and boost fish export volumes, with an ambitious goal of raising annual revenue to USD 90 million.

Minister Shiyam spoke of the importance of these arrangements, noting that the Government has taken substantial steps to fulfill the President’s pledge regarding timely payments. He discussed MIFCO’s critical role in the economy, stating that the company significantly contributes to foreign exchange inflows into the Maldives. He also pointed out that a thriving fishing sector enhances foreign exchange availability, benefiting the broader economy. Both he and the President are reportedly closely monitoring MIFCO’s operations to ensure their effectiveness.

The new system not only facilitates timely payments but also addresses issues related to foreign exchange management.

In the past, foreign currency earned from fish exports often ended up in the parallel market; however, under a new agreement between MIFCO, the banks, and the Ministry of Finance and Planning, these funds are now being routed directly into the formal banking system.

Minister Shiyam explained that this arrangement benefits fishermen, the banking system, and its customers.

Fishermen can now deposit their earnings in the bank within 48 hours, with MIFCO ensuring the required funds are available in US dollars.