“Following productive talks, the
“The difficult economic situation requires strong and urgent action to maintain macroeconomic stability and boost job creation. The
“Creating more economic opportunity for all Tunisians and protecting the health of public finance are at the heart of the government's economic strategy. In the near term, the priorities center on increasing tax revenue in an equitable way, implementing the civil service reform strategy that puts the wage bill on a sustainable trajectory, reducing energy subsidies, and covering the immediate liquidity deficits in the social security system. Increasing social spending and improving the targeting of the social safety net will protect the most vulnerable and their purchasing power in these difficult times. A tighter monetary policy would counteract inflationary pressures, and greater exchange rate flexibility would help narrow the large trade deficit.
“The government has made encouraging progress in advancing delayed reforms to tackle the structural barriers weighing on the Tunisian economy. Critical elements of this agenda include new legislation for investment and competition, work towards the establishment of a new constitutional body for the fight against corruption, and measures to reform public banks and public enterprises. Comprehensive pension reform will make the retirement system viable for future generations.
“Staff met with the Head of Government