Prime Minister Confirms Next Dose of Reforms: Price Increases From 4-5% [Archives:2000/10/Front Page]

March 6 2000

In a press conference, Dr. Abdulkarim Al-Iryani confirmed that the next dose of price adjustments is due within the next two months. He clarified that this is part of an already agreed upon schedule as part of the government’s Economic and Administrative Reform Program, with the World Bank, the IMF and other donors since 1990 and that price adjustments was included on the agenda of the Fiscal Year 2000 State Budget, which is already approved by the parliament. He stressed that they were necessary if Yemen was to successfully complete the restructuring of the economy to meet international parity. He also pointed out that these adjustments were subject to discussions with all the political parties and a final decision on its timing has yet to be taken. He said that the price rise envisaged is within the range of 4 -5%. On another note, Dr. Iryani noted that the government is conducting negotiations with the World Bank in Washington to obtain a loan of US $ 30 million to support administrative reforms. 
On the other hand sources of the Ministry of Supply and Trade continue to insist there will be no significant price increases. 
It is worth noting that many people are angry at the persistence of the government to pursue price increases, especially in the wake of rising oil production (450,000 barrels) and rising oil prices, which the public regards as being sufficient grounds for them to feel some relief from continuing economic pressure, which seems to only hit the general public. The opposition has threatened that there will be mounting public discontent expressed by peaceful marches and other non-violent forms of public expression. The government has suggested that any forms of public reactions will be met with severely.