WASHINGTON (Pakistan Point News / Sputnik - 17th August, 2022) The International Monetary Fund recommended on Wednesday that Saudi Arabia go ahead with its Vision 2030 reforms in order to diversify its economy and promote strong economic growth.
"Against the backdrop of the positive economic outlook, with balanced risks, (Executive Directors) underscored the need to continue implementing the Vision 2030 reform agenda, which will serve to diversify the economy and promote strong, inclusive, and greener growth," the IMF said in a statement after the conclusion of the 2022 Article IV consultation with Saudi Arabia.
The IMF welcomed Riyadh's fiscal discipline and underscored the need for energy price reforms, including reconsideration of the cap on gasoline prices.
"(Directors) called for further efforts to strengthen non-oil revenue mobilization through tax policy measures�including by maintaining the current VAT rate (value-added tax) �and enhancing revenue administration," it added.
The fund also commended Saudi authorities for ongoing reforms to strengthen social safety nets and welcomed the continued improvements in public financial management.
The IMF noted the kingdom's strong rebound from a pandemic-induced recession, with 3.2% GDP growth in 2021, noting that non-oil sector mostly leads the recovery process.
The Vision 2030 program, led by Crown Prince Mohammed bin Salman, is a strategic framework designed to reduce the nation's dependence on oil, diversify its economy, and develop public service sectors, including health, education, infrastructure, recreation, and tourism.
