Minister of Finance and Planning Moosa Zameer announced that the Government has settled a significant portion of outstanding payments owed to private businesses by the State and State-owned enterprises.

Speaking at a press conference at the President’s Office, Minister Zameer confirmed that the Administration is following through on President Dr Mohamed Muizzu’s commitment to clear these debts, though he noted that some specific claims were identified as non-payable based on advice from the Auditor General.

The Minister explained that while funds had been disbursed to certain companies in the past, internal audits and findings from the Auditor General highlighted issues that must be addressed before further processing. Consequently, affected companies have been instructed to resolve these discrepancies and resubmit their claims. Minister Zameer emphasised that work is ongoing to process the remaining valid pending bills.

Addressing the wider economic context, Minister Zameer highlighted that shifting global conditions have impacted the Government’s cash flow, necessitating a series of cost-cutting measures.

While not all strategies have been publicly disclosed, the Administration has significantly reduced non-essential expenditure, including scaling back overseas travel. While necessary diplomatic missions by the Ministry of Foreign Affairs continue, other official trips have been minimised.

As a result of these austerity efforts, a planned visit to the United Arab Emirates to sign a deferral agreement for a USD 100 million loan from the Abu Dhabi Fund for Development (ADFD) was postponed, with the Government now arranging to complete the signing process remotely.